Submission of Discovery Repor

RNS Number : 3921X

Gulf Keystone Petroleum Ltd

06 December 2010

 



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

 6 December 2010

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Submission of Discovery Report on Bijeel-1 Well

Further to the announcement made on 8 November, 2010, Gulf Keystone notes Friday 3 December, 2010, additional notification by MOL Hungarian Oil & Gas Plc (copied below) regarding the submission of the Discovery Report on the Akri-Bijeel Block Bijeel-1 discovery well, in which Gulf Keystone holds a 20% Working Interest. 

MOL Hungarian Oil & Gas Plc's Announcement:

Submission of Discovery Report on Bijell-1 exploration well

Akri-Bijeel block, Kurdistan Region of Iraq

MOL Hungarian Oil and Gas Plc. hereby informs the capital market participants that, further to its recent notification on 8 November 2010 on the test results, it has submitted the Discovery Report on the Bijell-1 exploration well to the Ministry of Natural Resources of the Kurdistan Region of Iraq.

As previously announced, 3,743 bbl/d 13° API oil and 618,826 scf/d (99 boe/d) gas was produced through 48/64" choke from the Bijell-1 well in an interval of 3,729 - 3,967 m during the joint cased hole test. This level might be significantly increased by application of artificial lifting systems. Based on the updated geological model of the accumulation, the calculated petroleum initially in place (PIIP) at P50 is 2,419 MMBOE in the Jurassic formations of the Bijell structure.

This Discovery Report will serve as a basis for the planning of the appraisal program of the Bijell structure.

Background:

On 8 November 2010, MOL announced the successful closing of the testing of the Bijell-1 well in the Akri-Bijeel Block.

MOL, via its 100% subsidiary, Kalegran Ltd., signed a Production Sharing Contract with the Kurdistan Regional Government for Akri-Bijeel exploration block in 2007. Kalegran is the operator of the block with 80% participating interest and Gulf Keystone Petroleum International Ltd. is its partner with 20%. share, both are subject to dilution by a Government held Third Party Participation of 20% and a Government Interest of 20%.

Enquiries:

Gulf Keystone Petroleum:	[phone]
Todd Kozel, Executive Chairman
Ewen Ainsworth, Chief Financial Officer
Strand Hanson Limited	[phone]
Simon Raggett / Rory Murphy / James Harris
Mirabaud Securities LLP	[phone]
Peter Krens
Pelham Bell Pottinger LLP	[phone]
Mark Antelme

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 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) is an independent oil and gas exploration company focused on exploration in the Kurdistan region of Northern Iraq.

·      Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for four exploration blocks in Kurdistan. The Company is currently embarking on an active appraisal and exploration drilling campaign in Kurdistan, including work to fully understand the scale of the world class Shaikan Field discovered in 2009.

·      Oil initially-in-place is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The range of uncertainty of the oil-in-place volumes is represented by a probability distribution with a low and high provided: P90 represents at least a 90% probability (high) that the quantities determined to be in place will equal or exceed the low estimate and P10 represents at least a 10% probability (low) that the quantities determined to be in place will equal or exceed the high estimate.  P1 represents at least a 1% probability that the quantities determined to be in place will equal or exceed the ultimate upside estimate.

Not for release, publication or distribution, directly or indirectly, in or into the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.

 

END

 

 

MSCFMMGZLKGGGZM