Appraisal expands scope of Iraq Shaikan oil discovery

Gulf Keystone Petroleum Ltd. listed appraisal well results at its Shaikan field in the Kurdistan Region of Iraq, including one well that recorded the deepest oil shows so far as indicated by both logs and core samples.

Independently audited gross oil in place at Shaikan is 8-13.4 billion bbl with a mean of 10.5 billion bbl.

Shaikan-4, 6 km west of the Shaikan-1 discovery well, is to be completed as a producer and tied to the Shaikan-1 and Shaikan-3 extended well test facility. The rig is being moved to drill the Sheikh Adi-1 exploratory well.

Shaikan-5, 6 km northeast of Shaikan-2, has been sidetracked as Shaikan-5B and casing has been set at the depth below 3,400 m in the Triassic Kurre Chine-B formation. Preliminary well logs indicate a continuous oil column in the Jurassic and hydrocarbon presence in the Triassic Kurre Chine-A and B consistent with results elsewhere in the field, most recently with Shaikan-4. Drilling is to continue to 3,750 m.

Shaikan-6, 9 km east of Shaikan-2, has casing set at 3,455 m in Kurre Chine-B. A preliminary evaluation of the comprehensive logging suite indicates a continuous oil column in the Jurassic Barsarin, Sargelu, Alan, and Mus formations and extending into the Butmah formation. Well logs from the Triassic indicate the hydrocarbon presence in both the Kurre Chine-A and B.

Shaikan-6 has recorded the field’s deepest oil shows so far as indicated by both logs and core samples. These oil shows have been recorded below the company’s originally prognosed Jurassic oil-water contact level for the Shaikan structure. A testing program is planned to verify the deeper oil potential. Drilling is to continue to an estimated 3,800 m, subject to technical conditions.

As part of the ongoing extended well test, output from the Shaikan-1 & 3 EWT facility has reached a gross 442,592 bbl of oil from Jan. 1-Apr. 28, 2012. A total of 187,884 bbl of oil has been produced in March and 156,428 bbl of oil in Apr. 1-28.

Work is under way to upgrade the existing Shaikan-1 and Shaikan-3 EWT facility in parallel to the design and construction of a new EWT facility for the Shaikan-2 location.

Gulf Keystone is evaluating bids submitted in response to the tender for materials procurement for the Shaikan field export pipeline project, with commercial evaluation to follow. Bids are also being received as part of the tendering process for the export pipeline site construction and installation.

Gulf Keystone is operator of the Shaikan block with 75% working interest. MOL Hungarian Oil & Gas PLC’s Kalegran Ltd. Subsidiary has 20%, and Texas Keystone Inc. has 5%.

Meanwhile, Gulf Keystone plans to spud Sheikh Adi-2, the second exploratory well on the Sheikh Adi block west of the Shaikan block, in June 2012. Gulf Keystone operates Sheikh Adi with 80% working interest, and the Kurdistan Regional Government has 20% carried.

Also, Aqra-1, first well to appraise the Bijell discovery on the Aqri-Bijeel block, is being drilled 8 km northwest of the discovery well. Aqra-1 is at 2,273 m in Cretaceous and logging prior to running 13-3/8-in. casing. It is projected to 4,700 m in Triassic subject to technical conditions. Kalegran operates

Akri-Bijeel with 80% interest, and Gulf Keystone has  20%.

Tests have started at Ber Bahr-1, first exploration well on the Ber Bahr block. TD is 3,930 m. Genel Energy operates Ber Bahr with 40% interest, Gulf Keystone has 40%, and the KRG 20% carried.

Gulf Keystone said stable output from the Shaikan extended well test has surpassed the initial target of 5,000 b/d and is set to increase with work under way to upgrade the existing EWT facility and design and construct a new facility for Shaikan-2.

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