Sheikh Adi-2 Exploration Well Discovery

RNS Number : 6097Q

Gulf Keystone Petroleum Ltd.

08 November 2012

 



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.

8 November 2012

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Sheikh Adi-2 Exploration Well Discovery

Gulf Keystone today announces that Gulf Keystone Petroleum International Limited, Operator under the Production Sharing Contract relating to the Sheikh Adi Block in the Kurdistan Region of Iraq dated 16 July 2009 ("PSC"), has notified the Sheikh Adi Block Management Committee of a discovery made on the Sheikh Adi Block with effect from 7 November 2012.

The notification of the discovery follows the completion of a well testing programme of the Sheikh Adi-2 exploration well on the block, located immediately to the west of the Company's Shaikan Block, which is a major commercial discovery.

Sheikh Adi-2 spudded in May 2012, 1.45 km to the north of the Sheikh Adi-1 exploration well, and was drilled to a total depth of 2,754 metres in September 2012. In the course of the Sheikh Adi-2 well testing programme the Company has successfully tested four reservoir zones at measured depths of between 1,420 metres and 1,700 metres, achieving total stabilised aggregate flow rates of 4,235 barrels of oil per day across the Upper Butmah, Adaiyah, Mus and Sargelu formations in the Jurassic. Provisional results indicate the oil gravity is similar to that found in the same formations in the Shaikan Block namely 15-18 API.

In line with the Sheikh Adi PSC, following the notification of discovery, the Operator will submit a Discovery Report to the Sheikh Adi Block Management Committee within 30 days. 

Gulf Keystone is the Operator of the Sheikh Adi Block with an 80 per cent working interest, while the Kurdistan Regional Government has a 20 per cent carried interest.

Todd F. Kozel, Gulf Keystone's Executive Chairman and Chief Executive Officer commented:

"We are very pleased with the outcome of the second exploration well on the Sheikh Adi Block, which is in on trend with Shaikan, our major commercial discovery declared earlier this year. This most recent exploration success points to the significant potential for further growth and future synergies across our world-class acreage in the Kurdistan Region of Iraq."

Enquiries:

Gulf Keystone Petroleum:	[phone]
Ewen Ainsworth, Finance Director
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

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.

§ 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

     four exploration blocks in Kurdistan, including the Shaikan, Sheikh Adi, Ber Bahr and

     Akri-Bijeel blocks.

§ GKPI is the Operator of the Shaikan Block 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.  

§ Shaikan is a major commercial discovery with independently audited gross oil-in-place

     volumes of between 12.4 billion barrels to 15 billion barrels calculated on the P90 to

     P10 basis, with a mean value of 13.7 billion barrels.

§ The Company's shares have traded on the AIM market of the London Stock Exchange

     since listing on 8 September 2004.

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.

 

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