Shaikan-3 Update

RNS Number : 1438B

Gulf Keystone Petroleum Ltd

14 February 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.

14 February 2011

Kurdistan Operational Update

Shaikan-3 Update

Gulf Keystone Petroleum is pleased to announce an update on the Shaikan-3 Shallow Appraisal Well. Following completion as a Sargelu/Alan formation producer and as a result of an acid treatment, Shaikan-3 has achieved a rate of 9,800 bopd.

The stabilized flow rate was recorded on a 128/64^th inch choke with a flowing tubing pressure of 264psi. The higher rate achieved by Shaikan-3, an improvement of approximately 30% on the previously reported rate of 7,480 bopd for Shaikan-1, is due to the removal of formation plugging around the well bore. Since data gathered from Shaikan-1 also indicates formation plugging a similar acid treatment will be performed on this well.

Both Shaikan-1 and Shaikan-3 are tied into the nearby extended well test facilities with a storage capacity of over 20,000 barrels.  

The Company has a 75 percent working interest in the Shaikan block and is partnered with the MOL subsidiary, Kalegran, and Texas Keystone which have the remaining 20 and 5 percent working interests respectively.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented

"The productivity increase achieved as a result of this acid treatment once again demonstrates the robust nature of these reservoirs and bodes well for our current oil sales and future field development."

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	[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 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 of the London Stock Exchange since listing on 8 September 2004.

§ Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with offices in Erbil, Kurdistan (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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