Shaikan-1 Triassic Discovery

RNS Number : 2743A

Gulf Keystone Petroleum Ltd

06 October 2009

 



Not for release, publication or distribution in or into jurisdictions other than the United Kingdom 
and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction

6 October 2009

Gulf Keystone Petroleum Ltd.

("Gulf Keystone" or "the Company")

Shaikan-1 Triassic Discovery

Gulf Keystone Petroleum Ltd. (AIM: GKP) today announces an oil discovery in the upper portions of the Triassic section of the Shaikan - 1 exploration well. A short, limited flow test was conducted to determine reservoir content following multiple drilling breaks, indicative of increased porosity, between 2,402 and 2,483m. This limited test resulted in 40+ degree API oil rates up to 2,000 bopd and associated gas rates of up to 2 mmscf/d, yielding a gas/oil ratio of approximately 1,000 scf/bbl.  

This high energy, light oil discovery is in addition to the 2.0 to 4.0 billion barrels of heavier (22 to 17 degree API gravity) oil previously announced at various levels throughout the shallower Jurassic intervals. 

The discovery of these high energy, light oil zones within the upper levels of the Triassic significantly improve chances of finding additional light oil targets in the 700 to 1000 meters still to be drilled.  

This most recent discovery will be logged when drilling has reached final TD, prior to setting the final, 7", casing string. The Company plans to install a workover rig following completion of drilling operations in order to commence extended testing of the multiple pay zones present in the Shaikan -1 exploration well. 

Todd Kozel, Chairman and Chief Executive Officer of Gulf Keystone, commented:

"The discovery of a higher energy reservoir in the upper portions of the Triassic section of the Shaikan - 1, while very significant in its own right, should also prove very beneficial to future development and exploitation of the large reserves of heavier, low GOR oil in the Jurassic portion of the well."

Enquiries

Gulf Keystone Petroleum:                                  [phone]
Todd Kozel, Chairman and Chief Executive Officer

Ewen Ainsworth, Chief Financial Officer

RBC Capital Markets:                                         [phone]

Sarah Wharry

Brunswick:                                                         [phone]
Patrick Handley

or visit: www.gulfkeystone.com

John Gerstenlauer, the Company's Chief Operating Officer, who has 31 years of relevant experience within the sector meets the criteria of a qualified person under the AIM guidance note for mining, oil and gas companies and has reviewed and approved the technical information contained in this announcement. Mr. Gerstenlauer is a member of the Society of Petroleum Engineers.

Notes to Editors

• Gulf Keystone Petroleum Ltd. (AIM: GKP) ("Gulf Keystone" or the "Company") is an independent oil and gas exploration company focused on exploration in the Kurdistan region of northern Iraq.
• The Company's shares have traded on the AIM market, since listing on 8 Sept 2004. 
• Gulf Keystone Petroleum International ("GKPI") is a joint venture between the Company and ETAMIC, its strategic partner in Kurdistan. The JV holds Production Sharing Contracts ("PSC's") in four exploration blocks with a total area under licence of 1,702 square kilometres.
• On 6 Aug 2009, the Company announced that GKPI had made a significant discovery at the Shaikan-1 exploration well which spudded on 27 April 09. The well is located in the Shaikan Block, situated near the city of Dihok, approximately 85 kilometres North-West of Erbil and covers an area of 283 square kilometres. The Company is currently continuing its drilling to deeper targets at the same location.
• An independent E&P consultant Dynamic Global Advisors has been appointed to perform an independent assessment of discoveries made in the Shaikan-1 well.
• On 14 Jul 2009, the Company announced its intention to suspend investment and undertake an exit from its operations in Algeria in order to focus on Kurdistan.
• Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with offices in Erbil, Kurdistan, Algiers, Algeria and London, UK.

 

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