AGM Operational Update

RNS Number : 5191I

Gulf Keystone Petroleum Ltd.

16 June 2011

 



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.

16 June 2011

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Annual General Meeting

Operational Update

Today Gulf Keystone will hold the Company's Annual General Meeting ("AGM") in line with the Notice of the 2011 AGM dated 18 May 2011.

Prior to today's AGM and further to the announcements of 23 May, 27 May and 14 June 2011, Gulf Keystone is pleased to provide an update on its operations in the Kurdistan Region of Iraq highlighting that:

·      Shaikan-2 deep appraisal well is currently at a depth of 3,166 meters with the final total depth (TD) still planned for the lower Triassic or the upper Permian

·      Sheikh Adi-1 exploration well is currently at a depth of 3,515 meters in the Triassic Kurre Chine B and a cased hole testing programme will be undertaken once the drilling has reached TD

·      After spudding on 27 May 2011, the Shaikan-4 deep appraisal well is currently at a depth of 462 meters

·      Preliminary results of the Shaikan 3D seismic data interpretation suggest a larger structure (by 5-10%) than originally mapped based on the earlier 2D seismic data

·      Bekhme-1 exploration well on the Akri-Bijeel block is drilling ahead at a depth of 2,828 meters. 

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented:

"With three Gulf Keystone wells underway on the Shaikan and Sheikh Adi blocks, the second exploration well being drilled in partnership with MOL on the Akri-Bijeel block, and the first exploration well expected to be drilled on the Ber Bahr block in partnership with Genel later in 2011, we are firmly focused on adding further oil-in-place volumes in all four blocks in the Kurdistan Region of Iraq."

At today's AGM the Company will give shareholders an overview Investor Presentation which will not contain any new material information pertaining to the Company's operations and activities. The accompanying presentation slides will be available on the Company's website at www.gulfkeystone.com at approximately 2pm UK time. 

Annual General Meeting

Operational Update

Shaikan-2

The Shaikan-2 deep appraisal well is currently at a depth of 3,166 meters. The well has penetrated both the Triassic Kurre Chine A (which tested 1,700 bopd in Shaikan-1) and the Kurre Chine B (which tested 6,000 bopd in Shaikan-1). The forward plan is to set casing at this depth just above the Triassic Dolomite prior to drilling into this highly prospective section. Previously high pressure, which exceeded the tolerance of the Shaikan-1 well design, forced the cessation of drilling in the Triassic Dolomite despite the evidence of oil and gas. The Shaikan-2 deep appraisal well (along with any subsequent and currently drilling wells operated by Gulf Keystone at these depths) is designed to operate under the high pressure previously encountered in the Triassic Dolomite.   

The Shaikan-2 final TD is still planned for the lower Triassic or the upper Permian.

Sheikh Adi-1

The Sheikh Adi-1 exploration well is currently at a depth of 3,515 meters in the Triassic Kurre Chine B. Good oil shows were encountered in the Kurre Chine A, as well as indications of much better oil shows in the Kurre Chine B. Although a flow test was initiated in the Kurre Chine A, it was determined that future testing as part of a cased hole programme would be more beneficial. 

The forward plan is to set casing just above the high pressure Triassic Dolomite and then drill as deep as possible into the middle to lower Triassic and, if feasible, into the upper Permian.

Once drilling has reached TD, a cased hole testing programme will be undertaken with a smaller rig. The AOS Discoverer-1 rig, currently on location at Sheikh Adi-1, will therefore move to the Shaikan-5 deep appraisal well drilling location. 

Shaikan-4

Shaikan-4, the second deep appraisal well, 6 kilometers to the north-west of the Shaikan-1 discovery well, was spudded on 27 May 2011 and is currently at a depth of 462 meters with a final target of the lower Triassic or the upper Permian depending on well results and drilling performance.

3D Seismic Processing and Interpretation

The Shaikan and Sheikh Adi 3D seismic data will be fully processed and interpreted by end of July 2011. Preliminary results of the 3D data interpretation indicate a somewhat larger Shaikan structure (by 5-10%) than originally mapped based on the earlier 2D seismic data. This is an encouraging departure from the norm when transitioning from a 2D based structure map to one based on 3D data. These results will form part of the input into future oil-in-place estimates.

Bekhme-1

Bekhme-1, the second exploration well on the Akri-Bijeel block operated by Kalegran Ltd. (a 100% subsidiary of MOL), is drilling ahead at a depth of 2,828 meters. 

Enquiries:

Gulf Keystone Petroleum:	[phone]
Todd Kozel, Executive Chairman and Chief Executive Officer
Ewen Ainsworth, Finance Director
Strand Hanson Limited	[phone]
Simon Raggett / Rory Murphy / James Harris
Mirabaud Securities LLP	[phone]
Peter Krens
Pelham Bell Pottinger	[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 and meets the criteria of a qualified person under the AIM note for mining, oil and gas companies, 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 and production company with operations in the Kurdistan Region of Iraq.

§ Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for fourexploration blocks in Kurdistan.

§ The Company's shares have traded on the AIM market since listing on 8th September 2004.

§ Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with further offices in Erbil, Kurdistan Region of Iraq, Algiers, Algeria and London, UK.

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.

 

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