Approval of Shaikan Field Development Plan

RNS Number : 8599H

Gulf Keystone Petroleum Ltd.

26 June 2013

 



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.

26 June 2013

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Approval of Shaikan Field Development Plan

Gulf Keystone, the independent oil and gas exploration and production company with operations in the Kurdistan Region of Iraq, is delighted to announce that the Field Development Plan for the Shaikan field, a world class commercial discovery, is now approved.

Todd F. Kozel, Chairman and CEO of Gulf Keystone, commented:

"This is an historic moment in the evolution of the Company. Gulf Keystone is now fully permitted to commence production from the Shaikan field and this represents a key milestone in the Company's growth. We have been a pioneer in the region from the outset and this milestone reconfirms our pioneering spirit and our desire to lead the upstream oil industry in Kurdistan"

"The initial production capacity will start in the coming weeks, steadily increasing to 20,000 barrels oil per day (bopd) and then quickly progressing to 40,000 bopd on the completion of the second production facility. This will increase to 150,000 bopd within 3 years and 250,000 bopd by 2018.

This is an enormous achievement by the GKP team who have worked so long and hard to achieve this goal and have forged such strong links within the Kurdistan Region, at all levels"

A spokesman of the Ministry of Natural Resources of the Kurdistan Region of Iraq  said:

"Gulf Keystone has done outstanding work during the exploration phase, exceeding its minimum contractual requirements from two wells to seven wells, and making substantial progress in defining and delineating the Shaikan field."

Production from the Shaikan block will play a crucial role in helping the Kurdistan Region to achieve its overall oil export targets of one million barrels per day by the end of 2015, and two million barrels per day by the end of the decade."

The MNR spokesman added: "The Ministry of Natural Resources looks forward to working with Gulf Keystone, and its partner in the block Kalegran, to continue to achieve Shaikan's production targets."

The full Announcement from the Ministry of Natural Resources of the Kurdistan Region of Iraq is reproduced in full below:

PRESS RELEASE

FOR IMMEDIATE RELEASE

Kurdistan Region's Ministry of Natural Resources announces key milestone for the Shaikan oilfield

26 June 2013

Erbil, Kurdistan Region, Iraq - The Kurdistan Regional Government's Ministry of Natural Resources is pleased to announce that it has today approved the field development plan for the Shaikan block, operated by Gulf Keystone.

This is an important milestone in the development of one of the Kurdistan Regions' most important oilfields.

A Ministry of Natural Resources (MNR) spokesman said: "Gulf Keystone has done outstanding work during the exploration phase, exceeding its minimum contractual requirements from two wells to seven wells, and making substantial progress in defining and delineating the Shaikan field."

Production from the Shaikan block will play a crucial role in helping the Kurdistan Region to achieve its overall oil export targets of one million barrels per day by the end of 2015, and two million barrels per day by the end of the decade.

Shaikan's production capacity in the first phase , which will start in the coming weeks, will be 40,000 barrels per day (bpd), increasing to 150,000 bpd in the next three years and 250,000 bpd by 2018.

The MNR spokesman added: "The Ministry of Natural Resources looks forward to working with Gulf Keystone, and its partner in the block Kalegran, to continue to achieve Shaikan's production targets."

ENDS

Enquiries:

Gulf Keystone Petroleum:	[phone]
Anastasia Vvedenskaya, Investor Relations
Strand Hanson Limited	[phone]
Simon Raggett / Rory Murphy / James Harris
Mirabaud Securities LLP	[phone]
Peter Krens
Pelham Bell Pottinger	[phone]
Mark Antelme / Henry Lerwill

John Gerstenlauer, the Company's Chief Operating Officer, who has 33 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.

or visit: www.gulfkeystone.com

Notes to Editors:

§ Gulf Keystone Petroleum Ltd. (AIM: GKP) is an independent oil and gas exploration and production company focused on exploration in the Kurdistan Region of Iraq.

§ The Company's shares have traded on the AIM market of the London Stock Exchange since listing on 8 September 2004.

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

§ Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for fourexploration blocks in Kurdistan, including the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.

§ GKPI is the Operator of the Shaikan Block, which is a major commercial discovery, with a working interest of 75 per cent and is partnered with Kalegran Ltd. (a 100 per cent subsidiary of MOL Hungarian Oil and Gas Plc.) and Texas Keystone Inc., which have working interests of 20 per cent and 5 per cent respectively.  Texas Keystone Inc. holds its interest in trust for Gulf Keystone, pending transfer of its interest to the Company.

§ On 25 June 2013, the Shaikan Block Management Committee approved the Shaikan Field Development Plan as submitted to the Ministry of Natural Resources of the Kurdistan Regional Government in January 2013 by Gulf Keystone Petroleum International Limited (Operator), Kalegran Ltd. and Texas Keystone Inc., collectively being the Contractor under the Production Sharing Contract relating to the Shaikan Block dated 6 November 2007 ("PSC"), and as revised by the Addendum 1 submitted subsequently on 18 June 2013.

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 announcement (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

 

 

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