Shaikan appraisal logs touted in Iraq's Kurdistan region

Log results indicate that the Shaikan-4 appraisal well may be the best well that Gulf Keystone Petroleum Ltd. has logged to date in Iraq’s Kurdistan region.

Independently audited gross oil in place volumes of between 8 billion bbl to 13.4 billion bbl calculated on the P90 to P10 basis with a mean value of 10.5 billion bbl (OGJ Online, Nov. 21, 2011).

Two well tests in Triassic have been completed at Shaikan-4, 6 km west of the Shaikan-1 discovery well. Five further tests are planned in the Jurassic and Triassic.

Shaikan-4 flowed 563 b/d of oil and 3.65 MMscfd of gas at 328 psi flowing wellhead pressure on the first well test, in the Kurre Chine C formation. On the second test, a thin zone at the bottom of the Kurre Chine B formation flowed at 4,970 b/d of oil and 7 MMscfd of gas at 1,101 psi flowing wellhead pressure. Initial results indicated 39° gravity oil.

The Shaikan-5 appraisal well, 6 km northeast of the Shaikan-2 appraisal well, is drilling at 1,571 m measured depth in Lower Cretaceous. Estimated final depth is 3,500 m subject to technical conditions.

The Shaikan-6 appraisal well, 9 km east of the Shaikan-2 appraisal well, has drilled to 844 m measured depth in Cretaceous and 20-in. casing has been set. Final depth is 3,800 m subject to technical conditions.

Gulf Keystone is operator of the Shaikan block with 75% working interest. Kalegran Ltd., a 100% subsidiary of MOL Hungarian Oil and Gas PLC, has 20%, and Texas Keystone Inc. has 5%.

Meanwhile, Kalegran, operator of the Akri-Bijeel block, has spudded Aqra-1, the first appraisal well to assess the Bijell discovery. Kalegran’s current P50 estimate for Bijell is 2.4 billion bbl of oil in place.

Aqra-1 is being drilled 8 km northwest of the Bijell-1 discovery well and 26 km west-northwest of the Bekhme-1 exploration well to an estimated TD of over 4,700 m in Triassic subject to technical conditions.

According to Kalegran’s Akri-Bijeel block operational update and 2012 outlook of Dec. 28, 2011, Aqra-1 is expected to be tested in the second half of 2012 and is to be followed this year by the Barkman-1 and Gulak-1 exploratory wells and the Bijell-2, Qalati-1, and Qandagul-1 appraisal wells in 2012 and two more appraisal wells in 2013.

An extended well test is planned for the Bijell-1 discovery well in 2012, similar to the ongoing successful Shaikan-1 and 3 extended well test.

Kalegran has 80% interest in the Akri-Bijeel block and Gulf Keystone has 20%.

On the Genel Energy-operated Ber Bahr block, the first exploratory well is drilling at 2,778 m measured depth in the Triassic. Estimated final depth is 3,000 m subject to technical conditions.

Ber Bahr block interests are Genel Energy 40%, Gulf Keystone 40%, and the Kurdistan Regional Government 20%. The operator’s resource estimate for the Ber Bahr block is 1.5 billion bbl of oil equivalent initially in place.