Operational Update

RNS Number : 4487X

Gulf Keystone Petroleum Ld

25 June 2008

 



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

25 June 2008 

GULF KEYSTONE PETROLEUM LIMITED 

("Gulf Keystone" or "the Company")

Operational Update

Shaikan and Akri-Bijeel Blocks, Kurdistan

Gulf Keystone Petroleum Limited (AIM: GKP), an independent oil & gas exploration company with interests in Algeria and Kurdistan, today announced the following update on activities in its Kurdistan blocks. 

Shaikan Block

The Shaikan Block is operated by Gulf Keystone Petroleum International Ltd. ("GKPL") with a working interest of 75% in partnership with both Kalegran Ltd ("Kalegran"), a subsidiary of MOL Hungarian Oil and Gas Public Limited Company ("MOL"), and Texas Keystone Inc. ("Texas Keystone") with working interests of 20% and 5% respectively.

The 2D seismic programme which was completed in April 2008 acquired 171 kilometres using a combination of vibrator and dynamite sources and satisfies the seismic acquisition obligation under the exploration phase of the PSC.  A preliminary interpretation by the Company’s internal technical team of the processed data has confirmed the existence in the subsurface, at the depth of prospective reservoir zones, of the large anticline which is visible at the surface outcrop and is at the surface some 26 kilometres in length and 5 kilometres in width. The Company is planning to drill a well on the crest of the anticline for late 2008 to be drilled to approximately 3,500m. The well will target reservoir zones where oil has been discovered elsewhere in Kurdistan and northern Iraq, namely the Qamchuqa, Sehkaniyan and Kurre Chine. Other zones targeted by GKPL as having reservoir potential are the Chia Gara/Najmah and Chia Zairi. Based on the preliminary seismic mapping, reservoir parameters from analogues in Kurdistan and northern Iraq, and estimates of reservoir parameters made by GKPL personnel* GKPL estimates that should they drill a discovery well the five zones combined have potential unrisked in-place oil volumes of up to 2 billion reservoir barrels^**.

The Shaikan Block is situated near the city of Dihok, approximately 85 kilometres North-West of Erbil and covers an area of 283 square kilometres.

Akri-Bijeel Block

The Akri-Bijeel Block is operated by Kalegran, who is the holder of an 80% working interest (“The Operator”) – in partnership with GKPL with a working interest of 20%.

A seismic crew has been in the field since early April and acquisition of approximately 400 kilometres of 2D seismic is ongoing which will satisfy the seismic acquisition obligation under the exploration phase of the PSC. In addition, extensive field mapping has been undertaken to map the surface geology of the licence areas, and sample oil seeps discovered during the field work.

The Akri-Bijeel Block is adjacent to the Shaikan Block and covers an area of 889 square kilometres. 

Todd Kozel, Chairman and Chief Executive Officer, commented: 

"I am delighted with the rapid progress being made on the Shaikan and Akri-Bijeel blocks. The early acquisition of seismic on Shaikan, which is allowing the partners to move quickly forward to drilling the first exploration well, is a credit to the co-operation between Gulf Keystone and MOL, as well as the valuable support we enjoy from the Kurdistan Regional Government."

Christopher Garrett, the Company's Vice President of Operations, who has over 29 years 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 Garrett is a Fellow of the Geological Society, a member of the Petroleum Exploration Society of Great Britain, and a Certified Petroleum Geologist (American Association of Petroleum Geologists). 

*Where relevant analogue data was not available the reservoir parameters used are “best estimates” made by GKPL personnel based on their current understanding of the regional geology.

** Potential oil in place volumes are quoted in reservoir barrels as there is insufficient data to allow estimation of an oil shrinkage factor and a recovery factor.

Enquiries

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

Ewen Ainsworth, Chief Financial Officer

RBC Capital Markets:                                   [phone]

Andrew Smith

Sarah Wharry

Tristone Capital Limited:                             [phone]

Simon Ashby-Rudd

Majid Shafiq

Citigate Dewe Rogerson:                            [phone] 
Martin Jackson

George Cazenove
 

or visit: www.gulfkeystone.com

 

END

 

 

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