Gulf Keystone Petroleum Regulatory News (GKP)

31 Jan 2008 07:01

Gulf Keystone Petroleum Ld31 January 2008 Not for release, publication or distribution in or into jurisdictions other thanthe United Kingdom and Bermuda where to do so would constitute a contraventionof the relevant laws of such jurisdiction 31 January 2008 GULF KEYSTONE PETROLEUM LIMITED ("Gulf Keystone" or "the Company") DRILLING UPDATE SUCCESSFUL TEST OF HBH-4 WELL, ALGERIA SONATRACH (Algeria's National Oil Company) and partners Gulf Keystone PetroleumLtd (AIM: GKP) and BG Group (Operator) are pleased to announce that drilling onthe HBH-4 appraisal well, on the Hassi Ba Hamou ("HBH") gas field in Algeria,has been completed and the well tested. The drilling of the HBH-4 well began on 16 December 2007 to a total depth of1,011 metres. A production test has been carried out on reservoirs of Devonian age. Astabilised flow rate of 12,800 cubic meters per hour (10.8 mmscfg per day) wasachieved through a 88/64-inch choke. The HBH permit, which contains the HBH gas field, was awarded in May 2005 ("HBHPermit"). It comprises five blocks within an area of 18,380 square kilometres inthe Bechar Basin in Algeria's Western Desert. Partners in the HBH Permit are Gulf Keystone 38.25%, BG Group 36.75% andSONATRACH 25%. The drill rig will now move to drill well HBHN-1, an exploration well to thenorth of the HBH gas field. Christopher Garrett, the Company's Vice President of Operations, who has over 29years relevant experience within the sector and who has been involved with thisproject for over 2 years and meets the criteria of a qualified person under theAIM guidance note for mining, oil and gas companies, has reviewed and approvedthe technical information contained in this announcement. Mr. Todd Kozel, Executive Chairman, Gulf Keystone, commented: "This is the first well in a series of 6, 3 appraisal and 3 exploration, thatthe Association plans to drill back to back on the Hassi Ba Hamou Permit. "The well was completed on schedule and to budget with the test data and flowrate in-line with our expectations. This gives us valuable information on theresource potential of the permit and encouragement as we move onto the firstexploration well on the HBH permit." Enquiries Gulf Keystone Petroleum: +44 (0) 20 7514 1400Todd Kozel, Executive Chairman Hoare Govett Limited: +44 (0) 20 7678 8000Andrew Foster Tristone: +44 (0) 207 399 2470Simon Ashby-Rudd Citigate Dewe Rogerson: +44 (0) 20 7638 9571Media: Martin JacksonAnalysts: Kate Delahunty or visit: www.gulfkeystone.com This information is provided by RNS The company news service from the London Stock Exchange