Algerian Licence Ratification
Gulf Keystone Petroleum Ld
19 September 2005
19 September 2005
GULF KEYSTONE PETROLEUM LIMITED
("Gulf Keystone" or the "Company")
Algerian Licence Ratification
Gulf Keystone Petroleum, Ltd. (AIM-GKP), an independent oil exploration company
operating in the Republic of Algeria, announces that it has received
notifications that two Production Sharing Contracts ("PSC's") have now been
ratified, having both been approved by Presidential Decrees. These two PSC's
cover the blocks that Gulf Keystone was awarded in the sixth Algerian
international licensing round which was concluded in Algiers on 23 April 2005.
They are the Hassi Ba Hamou contract perimeter comprising blocks 317b, 322b3,
347b, 348 and 349b in the Bechar Oused Namous basin, and one block on the
Bottena perimeter in the South East Constantine Basin, block 129.
The contracts are for the research, appraisal, development and exploration of
hydrocarbons within the contract areas.
Hassi Ba Hamou Perimeter
The Hassi Ba Hamou perimeter covers an area of 18,380 square kilometres and
contains one existing gas field, HBH, which SONATRACH's engineers estimate
contains over 1 trillion cubic feet of gas in place. The HBH Field was
discovered in 1965 before the existence of the gas pipeline that now crosses the
block, and, thus, has never been developed and put into production. The HBH-1
discovery well flowed at an initial rate of approximately 3 million cubic feet
per day from porous sands above 3,200 feet depth. SONATRACH's interpretation of
the previously acquired 4,069 kilometres of 2D seismic has identified eight
additional prospects and leads with combined exploratory potential of an
additional 4.4 trillion cubic feet of gas in place.
Gulf Keystone plans to appraise the existing discovery, HBH-1, drill two
exploration wells, acquire 100 square kilometres of 3D seismic and 400
kilometres of 2D seismic during the first three year phase of the contract.
Bottena Perimeter
The Bottena perimeter covers an area of 4,368 square kilometres and is situated
next to the eastern border of Gulf Keystone's Block 126a extending eastward to
the Tunisian border. The license area contains the Djebel Onk Field, which is
excluded from the license, and the Hassi El Kerma (HEK) Field which was
discovered in 2001 and which SONATRACH identifies as containing 178 million
barrels of oil in place (27 million barrels defined as proven and probable).
This is more than 2.5 times larger than the resources they attribute to Djebel
Onk which to date has produced nine million barrels of oil. SONATRACH recently
drilled two additional structures on the permit area, DDN (2000) and HCZ (2002).
SONATRACH have estimated that these structures contain a combined 182 million
barrels of oil in place. Using its 5,300 kilometres of 2D seismic, SONATRACH has
mapped an additional two prospects and 21 leads that they assign estimated oil
in place resources to of more than 750 million barrels.
Finally, SONATRACH has drilled four wells on what was the first hydrocarbon
discovery in the basin (1954), the Djebel Foua Field. SONATRACH has previously
tested gas at rates greater than eight million cubic feet per day from depths
above than 3,000 feet. This field is only 20 kilometres from the
Trans-Mediterranean Pipeline. Gulf Keystone intends to appraise the discoveries
Hassi El Kerma and Djebel Foua, drill one exploration well and acquire
additional 2D and 3D seismic on the Bottena Perimeter.
Todd Kozel, Chief Executive Officer of Gulf Keystone said:
"We are delighted at the speed with which the Algerian Government has moved to
issue these licence ratifications. Since being awarded the PSC's in April, we
have been preparing a comprehensive seismic and drill programme which we can now
seek to implement."
Enquiries
Evolution Securities: 020 7071 4300
Robert Collins
Citigate Dewe Rogerson: 020 7638 9571
Martin Jackson / Rachel Lankester
This information is provided by RNS
The company news service from the London Stock Exchange
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