Last checked at 14 Jan 2010 07:00
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14 January 2010
Gulf Keystone Petroleum Ltd. (AIM: GKP)
("Gulf Keystone" or "the Company")
Significantly Increased Oil in Place Numbers for Shaikan Discovery
Shaikan-1 has been independently evaluated by Dynamic Global Advisors ("DGA"). This final evaluation report reviewed the data from the Cretaceous, Jurassic and Triassic formations of Shaikan-1 tested to a depth of 2,950 meters and was carried out in accordance with the Petroleum Resources Management System ("PRMS") guidelines, using SPE definitions.
Key findings:
The range of oil in-place for the Shaikan structure has been increased to a gross 1.9 (P90) to 7.4 (P10) billion barrels of oil, with a mean of 4.2 billion barrels of oil in place. Previous estimates were 1.0 (P90) and 5.0 (P10). In addition, there is upside potential (P1) up to a total of 13 billion barrels of oil in place.
In addition the DGA Executive Summary confirms that: "This discovery greatly reduces the geologic risks in the Sheikh Adi, Akri Bijeel and the Ber Bahr blocks, Gulf Keystone's adjacent opportunities. The Shaikan discovery proves the presence of hydrocarbon source and migration in the area.
Shaikan Oil-in-place summary
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| P90
| P10
| Mean | Potential Oil in Place Volume |
| Drilled (above 2950) (million barrels) | 1,891 | 7,422 | 4,184 | 13,000 (P1) |
| Additional prospective resources (lower Triassic and Permian (million barrels) |
| 1,000 to 5,000 | ||
| Total (million barrels) | 1,891 | 7,422 | 4,184 | 14,000 to 18,000 |
Todd Kozel, Executive Chairman of Gulf Keystone, commented:
"This report independently corroborates the world class quality of the discoveries and provides invaluable data for our next test wells appraising these finds. We are delighted with the results of the final DGA report evaluating Shaikan-1 and we look forward to realizing as much of the upside potential of this discovery as possible."
A copy of the final report is available on the Company's website at www.gulfkeystone.com
Notes:
Discovered Petroleum initially-in-place is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production.
The PRMS guidelines and reserves definitions can be found in full at the Society of Petroleum Engineers website http://www.spe.org/spe-app/spe/industry/reserves/index.html
Enquiries:
| Gulf Keystone Petroleum: | +44 (0) 20 7514 1400 |
| Todd Kozel, Executive Chairman |
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| Ewen Ainsworth, Chief Financial Officer |
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| Strand Partners Limited | +44 (0)20 7409 3494 |
| Simon Raggett / Rory Murphy / James Harris |
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| Mirabaud Securities LLP | +44 (0)20 7878 3362 |
| Peter Krens |
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| Brunswick Group LLP | +44 (0) 20 7404 5959 |
| Patrick Handley |
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or visit: www.gulfkeystone.com
John Gerstenlauer, the Company's Chief Operating Officer, who has 31 years of relevant experience within the sector meets the criteria of a qualified person under the AIM guidance note for mining, oil and gas companies and has reviewed and approved the technical information contained in this announcement. Mr. Gerstenlauer is a member of the Society of Petroleum Engineers.
Notes to Editors:
Gulf Keystone Petroleum Ltd. (AIM: GKP) ("Gulf Keystone" or the "Company") is an independent oil and gas exploration company focused on exploration in the Kurdistan region of Northern Iraq.
The Company's shares have traded on the AIM market, since listing on 8 Sept 2004.
Gulf Keystone Petroleum International ("GKPI") is a joint venture between the Company and ETAMIC, its strategic partner in Kurdistan. The JV holds Production Sharing Contracts ("PSC's") in four exploration blocks with a total area under licence of 1,702 square kilometres.
On 6 Aug 2009, the Company announced that GKPI had made a significant discovery at the Shaikan-1 exploration well which spudded on 27 April 09. The well is located in the Shaikan Block, situated near the city of Dihok, approximately 85 kilometres North-West of Erbil and covers an area of 283 square kilometres.
The independent E&P consultant Dynamic Global Advisors (DGA) was appointed to perform an independent assessment of discoveries made in the Shaikan-1 well. Houston based DGA is an independently-owned E&P consultancy, providing advice and services to national, institutional, and corporate clients worldwide.
On 14 Jul 2009, the Company announced its intention to suspend investment and pursue a sale of holdings in the HBH/RM project in Algeria in order to focus on Kurdistan.
Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with offices in Erbil, Kurdistan, Algiers, Algeria and London, UK.