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Gulf Keystone Petroleum reports further Triassic discoveries in Shaikan-1 well

23 November 2009

Gulf Keystone Petroleum, the oil and gas group active in the Kurdistan region of Iraq, today reported new discoveries in its Shaikan-1 well, which has already delivered test results beyond expectations.

This new findings focus on a second positive result from the Triassic formation in the well, which flowed at 10,000 barrels of oil equivalent (boe) per day. This results in an aggregate actual test rate of 20,000 boe per day from the Jurassic and Triassic tests done so far in Shaikan-1.

The well has now reached a total depth (TD) of 2950 meters and Gulf Keystone has carried out a second test in the Triassic after the first test was limited by surface restrictions and down hole tool problems. The second test (2582m to 2849m) produced 6000 barrels of oil per day of 53 to 55 degree API oil and 21 million standard cubic feet (mmscf) per day of gas.

Shaikan-1 was originally aiming for a total depth of between 3200m and 3500m, but has been finished early after it encountered a zone of very active oil and gas inflow immediately below a sealing layer at 2940m. Gulf Keystone noted that while there was no certainty, reliable data from the nearest existing well indicates that this zone is possibly 50 or more meters thick.

This high pressure portion of the Triassic as well as the underlying Permian zone will be high priority exploration targets at the bottom of the Shaikan-2 appraisal well scheduled to be drilled starting in mid 2010.

Overall, the Shaikan-1 well has discovered over 1000 meters of oil column and over 200 meters of net pay. So far Gulf Keystone has tested less than 30% of this net pay. This 30% of net pay demonstrated the capability for 31,000 boe per day of aggregate production, which should rise as longer term tests are undertaken.

Todd Kozel, Gulf Keystone’s executive chairman, said: “Shaikan-1 has exceeded the most optimistic prognosis held at the start of drilling. Each phase of drilling has resulted in significant discoveries, and any one of the several target layers of the Jurassic or Triassic intervals contain, by any measure, outstanding volumes of oil-in-place. It is our belief that the aggregate volumes suggest an even larger future potential.”






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