Operational Update - Bijeel-1

RNS Number : 0881O

Gulf Keystone Petroleum Ltd

23 June 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.

23 June 2010

Gulf Keystone Petroleum Ltd.

("Gulf Keystone" or the "Company")

Operational Update - Bijeel-1 Exploration Well

Well Results Yield Drilling Delays but also Resource Improvements at Shaikan

Gulf Keystone today reports an update on the Bijeel-1 exploration well operated by MOL subsidiary, Kalegran Limited.

The Bijeel-1 exploration well has encountered more than 400 meters of potential hydrocarbon bearing interval between 3646m and TD at 4383m. Kalegran evaluated and tested the top 30 meters of the zone at rates up to 3200 bopd, as reported on March 9, 2010, however mechanical problems were encountered when testing and evaluating the remaining 370 meters. This has necessitated a sidetrack and re-drill of the lower portion of the well to fully evaluate and test the remaining intervals, which is expected to take up to eight weeks to complete.

Consequently, drilling of the Shaikan-2 appraisal/exploration well, which is to use the Weatherford 842 rig currently on location at the Bijeel-1 well, will be delayed. The Shaikan-2 well is now expected to spud during the third quarter of 2010.

The Bijeel-1 exploration well has provided water pressure data which, when taken with data from other wells in the area, has favourable implications for the Shaikan structure. The data would appear to support the concept of a regional aquifer which underlies the Shaikan structure and that the hydrocarbon-water contacts in each reservoir are substantially deeper than the lowest known hydrocarbon depths, as determined from log data.

Gulf Keystone CEO, Todd Kozel, said:

"While the sidetrack of Bijeel-1 delays our drilling of the Shaikan-2 appraisal well, we are delighted by the first successful test of 3200 bopd and we look forward to the test results from the additional prospective intervals. The implications of the water pressure data from Bijeel-1 provides further support for movement toward the upside volume range for the Shaikan structure."

Resource Range for Shaikan (billion bbls oil-in-place)
P90	Mean	P10	P1
1.9	4.2	7.4	13.0

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
Brunswick Group LLP	[phone]
Patrick Handley / Pip Green

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 fourexploration blocks in Kurdistan.

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

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

§  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.

 

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