The Company’s Net Asset Value climbed a mighty 8.2 % during October as both Kurdistan and world equity markets showed strength. The performance stands well compared to an increase of 4.6 % in MSCI Frontier Market and 4.2 % in MSCI World Market, all figures stated in SEK.

All but one of our holdings posted positive figures in October. The largest contributor to the portfolio performance where recorded from Shamaran Petroleum, up 38 %, on announcement of drilling operations to be started in the Atrush block, and that Marathon Oil bought 20 % of the working interest in the block. With an estimated potential of between two and four billion barrels, and sited close to Gulf Keystone's huge discovery at Shaikan-1, the field could be one of the larger in Kurdistan. Further, Heritage Oil rose double-digit in October, supported by a settled tax dispute and renewed speculation of a takeover of the company.

During the month we increased our holdings in Heritage Oil while we kept our...