http://www.gulfkeystone.com/ The firms exploration programme in Algeria is going well and "the shares look good value", say the Investors Chronicle. Your comments please. goal.

13 December 2011

Gulf Keystone Petroleum Ltd. (AIM: GKP)
("Gulf Keystone" or "the Company")

Kurdistan Operational Update
Gulf Keystone today provides an update on its ongoing exploration and appraisal programme in the Kurdistan Region of Iraq, which includes the Shaikan block, a major discovery with independently audited gross oil-in-place volumes of between 8 billion barrels to 13.4 billion barrels calculated on the P90 to P10 basis with a mean value of 10.5 billion barrels.

Shaikan-4 Appraisal Well

Gulf Keystone has completed drilling of the Shaikan-4 appraisal well, 6 km to the west of the Shaikan-1 discovery well, to a total depth (TD) of 3,387 metres in the middle Triassic with 2,375 metres of total gross pay interval. The well has been drilled through the Jurassic (Sargelu, Alan, Mus and Butmah formations) and the upper and middle Triassic (Baluti, Kurre Chine A and Kurre Chine B formations) with an indication of potential new Jurassic reservoirs in Sargelu sands and Barsarin carbonates.

The Company is now embarking on a well testing programme for Shaikan-4 which will target several formations in the Jurassic and Triassic, including the Chia Gara/Barsarin, Sargelu, Butmah, Kurre Chine-A, Kurre-Chine-B and Kurre Chine-C formations.

Preliminary results from Shaikan-4 formed part of the new data used by Dynamic Global Advisors (DGA), independent Houston-based exploration consultants, to calculate the most recent significant upgrade of the gross oil-in-place volumes for the Shaikan discovery announced in November 2011.

Shaikan-5 Appraisal Well

The Shaikan-5 appraisal well, 6 km to the north-east of the Shaikan-2 appraisal well, has drilled to a measured depth of 856 metres and 20" casing is currently being set. The well will then continue drilling to the estimated TD of 3,500 metres subject to technical conditions.

Shaikan-6 Appraisal Well

The move of the WDI 842 rig to the location of the Shaikan-6 appraisal well is ongoing. The well, which will be drilled 9 km to the east of the Shaikan-2 appraisal well, is due to spud in December 2011. Estimated TD for Shaikan-6 is 3,800 metres subject to technical conditions.

Shaikan oil sales

Gulf Keystone has recommenced sales of the Shaikan crude to the domestic market of the Kurdistan Region of Iraq at a rate of about 1,500-2,000 barrels of oil per day. This initial rate for the crude produced at the Shaikan-1 & 3 Extended Well Test (EWT) facilities has been set to meet current domestic oil sales specifications. Volumes of oil production and sales, both into the domestic and export markets, are due to increase significantly after the ongoing upgrade of the Shaikan-1 & 3 EWT facilities has been completed.
Gulf Keystone is the Operator of the Shaikan block with a working interest of 75 per cent and is partnered with Kalegran Ltd. (a 100 per cent subsidiary of MOL Hungarian Oil and Gas Plc.) and Texas Keystone Inc., which have working interests of 20 per cent and 5 per cent respectively.

Ber Bahr-1 Exploration Well

The first exploration well on the Ber Bahr block has drilled to a measured depth of 1,765 metres at the top of the Triassic with hydrocarbons indications observed in the well. Wireline logging is underway which will be followed by running of 9 5/8" casing. The well will then continue drilling to the estimated TD of 2,100 metres.

Gulf Keystone has a 40 percent working interest in the Ber Bahr block operated by Genel Energy, which holds a 40 percent working interest in the block. The Kurdistan Regional Government has a 20 percent carried interest in the Ber Bahr Production Sharing Contract. The Operator's resource estimate for the Ber Bahr block is 1.5 billion barrels of oil equivalent-initially-in-place.

Bekhme-1 Exploration Well

The testing programme for Bekhme-1, the second exploration well on the Akri-Bijeel block drilled 20 km to the north-east from the Bijell‑1 discovery well, is ongoing. After the testing programme has been completed in December, the Operator will issue an appropriate announcement.

Gulf Keystone has a 20 percent working interest in the Akri-Bijeel block operated by Kalegran Ltd., 100% subsidiary of MOL Hungarian Oil and Gas Plc., which holds 80 percent working interest in the block. Operator's P50 resource estimate for the Akri-Bijeel block is 2.4 billion barrels of oil-in-place.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented:

"Following our recently completed tests at the Shaikan-2 appraisal well, we plan to replicate this successful programme at Shaikan-4. Our preliminary results for this well are very promising and we look forward to the Shaikan-4 well testing programme which is yet another step in the process of unlocking the full potential of the giant Shaikan discovery in the Kurdistan Region of Iraq. In this regard, the recommencement of our domestic oil sales is particularly significant as we prepare to upgrade the existing test production facilities and ramp up both domestic sales and oil exports of the Shaikan crude in the first half of 2012."

Gulf Keystone has completed drilling of the Shaikan-4 appraisal well, 6 km to the west of the Shaikan-1 discovery well, to a total depth (TD) of 3,387 metres in the middle Triassic with 2,375 metres of total gross pay interval. The well has been drilled through the Jurassic (Sargelu, Alan, Mus and Butmah formations) and the upper and middle Triassic (Baluti, Kurre Chine A and Kurre Chine B formations) with an indication of potential new Jurassic reservoirs in Sargelu sands and Barsarin carbonates.


with 2,375 metres of total gross pay interval.

Excellent update.

The next one is the biggie.

Look at the gross pay at SH-4 -wow.

Probably waiting for the operator to (GENL)to release news fo oil play in B/Bahur?

By Khayoun Ahmad

Azzaman, December 12, 2011

The government has transferred $427 to Iraqi Kurds as part of an agreement to settle differences over the development of oil fields, said Finance Minister Rafie al-Essawi.

PS. think that should be $427m?

.

.

E&P News
Mirabaud Securities
13 December 2011



This morning Gulf Keystone (GKP LN) announced that it has completed the drilling of deep appraisal well Shaikan-4. The well has reached TD of 3,387 metres in the middle Triassic having encountered the thickest net pay count on the field to date (as announced on 5/9/11). We note that preliminary results from this well were incorporated into the November resource update and therefore todays news is unlikely to significantly impact field volumetrics. A number of tests are planned across formations in the Jurassic and Triassic, which will include tests on potentially new reservoirs in Sargelu formation sands and Barsarin carbonates.

At the Shaikan-5 deep appraisal well, drilling has reached 856 metres of the 3,500 metres planned TD. Currently the 20 casing is being set. The next appraisal well, Shaikan-6, is due to spud in December. This well will be the furthest step-out to the east, some 9 km east of Shaikan-2, and has a planned TD of 3,800 metres. Meanwhile sales from the EWT on Shaikan-1 and 3 to the domestic market have recommenced at a rate of 1,500-2,000 bopd, which was set to meet current domestic oil sales specifications. These rates are expected to increase significantly (previous recommendations suggested to over 10 kbopd) once the facilities upgrade is completed.

The company also currently has two exploration wells drilling. The Genel-operated Ber Bahr-1 has reached the top of the Triassic at a depth of 1,765 metres. Indications of hydrocarbons have been observed, and wireline logging is underway. On completion, drilling will continue to the estimated TD of 2,100 metres. At the MOL-operated Bekhme-1 exploration well tests are ongoing. The company expects the programme to complete later in the month, following which an announcement will be made.

While the appraisal results on Shaikan are encouraging, we are rapidly approaching the point where the upside in this asset is potentially capped by the 25 year life of the production license. The real excitement in this mornings announcement is from Ber Bahr. The seemingly cautious comment relating to this exploration well reflects the fact that information flow has been constrained by the operator Genel but we understand from GKP that the initial results are similar to those observed in early Shaikan wells. This suggests that Ber Bahr could be the groups fourth material discovery although test data will be crucial to determining reservoir quality and hydrocarbon phase.

The real excitement in this mornings announcement is from Ber Bahr. The seemingly cautious comment relating to this exploration well reflects the fact that information flow has been constrained by the operator Genel but we understand from GKP that the initial results are similar to those observed in early Shaikan wells

ilVoice | Iraq to Emerge In Near Future as Major Oil Producer: The Role of Kurdistan in the Renaissance of Iraq: http://bit.ly/rsG94S

Posted by CWC Group Limited on Tuesday, December 13, 2011 03:55

London (13 December 2011): Kurdistan Iraq Oil & Gas Conference was organised by CWC Group and opened by H.E. Dr Barham Salih, Prime Minister of KRG-Iraq. The conference took place on 13-15 November at the Saad Palace Conference Centre in Erbil, Iraqi Kurdistan. The event gathered over 600 delegates including senior industry executives and government representatives from the KRG and the Federal Iraqi Parliament.

The conference was the first event of its kind and it showcased Iraq and the Kurdistan region as the last frontier for oil exploration and emphasized how Iraq needs to maximize revenues in the shortest possible time to overcome the legacies of recent decades.

More than 27 distinguished Ambassadors and senior diplomats represented their countries at the conference. The Turkish Ministry of Energy was represented by the Senior Energy Deputy Minister who spoke about Turkey's position in the energy world. Turkey's Genel Enerji was among the first oil companies to enter Kurdistan.
The former BP chief executive and now CEO of Vallares, Tony Hayward, spoke of Kurdistan as one of the last great frontiers and highlighted the regions resource potential.

Kurdistan Iraq Oil & Gas Conference, described by Britain's Minister of Energy Charles Hendry as an invaluable opportunity for the many UK businesses was sponsored by Gulfkeystone, Dana Gas, Genel Enerji, DNO, Marathon Oil, Repsol, Kar Group, Oil and Gas Management Services, Iraq Oil UB Holding, Addax Petroleum, Afren, OMV, Oilserv, MOL, General Exploration Partners, Hess, Talisman Energy, Western Zagros, KS Drilling, VIKING, Range Energy Resources, Garda World, Mubadala and hundreds of other companies.

Charles Hendry also announced that As the country with greatest potential for increasing conventional oil production in the medium term, the trajectory of Iraqs future oil and gas production is of considerable importance to global energy markets and security.

H.E. Barham Salih, Prime Minister of Kurdistan KRG Iraq also referred to the event in his speech: Holding such a conference in Kurdistan was beyond anybody's dream, it was unimaginable to say, the least and thanked CWC Group for working to organize this conference.

The conference ended with the last session led by H.E. Dr Ashti Hawrami, Minister of Natural Resources, KRG-Iraq and Michael Howard, Ministers Communications Advisor who highlighted the positive message that the conference reflected to the Investors, and announced that CWC will be organising the 2nd Kurdistan Iraq oil and gas conference next year in November.

Location United Kingdom

Category Company News Release

I can't seem to get out of black type,any suggestions?

.

http://iraqidinarnews.net/blog/2011/12/13/nujaifi-promises-vote-on-oil-law-next-week/

Think it may change on new page cyril.,.

niceonecyril, go back to post 2024 and edit it and delete everything in the post, replace with a single .

Proselenes,thanks.

Mirabaud go on to spell out that GENL, the operator, "constrained" GKP from saying anymore. Then the big news that you would not expect - "but we understand from GKP that the initial results are similar to those observed in early Shaikan wells. This suggests that Ber Bahr could be the group's fourth discovery although test data will be crucial to determining reservoir quality and hydrocarbon phase"

I;m looking at taking a position in GENL,my reasoning being that i feel a result at Ber Bahir will have a bigger impact for them and it's "ISABLE".

My previous post was taken from this post,thought it worth pasting in whole.


part of a post by Dotbear (yesterday on iii)

BB will have nothing of note until the wireline logs are done, and obvious why GENL would not bother releasing anything as there's nothing really material to release yet. Wireline logging is uderway right now.

So why now?

Well, Mirabaud helped to fill in the blanks with their note. As they put it "The real excitement in this morning's announcement is from Ber Bahr"

This made me sit up and pay attention.

Mirabaud go on to spell out that GENL, the operator, "constrained" GKP from saying anymore. Then the big news that you would not expect - "but we understand from GKP that the initial results are similar to those observed in early Shaikan wells. This suggests that Ber Bahr could be the group's fourth discovery although test data will be crucial to determining reservoir quality and hydrocarbon phase"

I just thought 'HELLO !!' followed by 'that's going to p*ss off GENL'.

The information that GKP were not allowed to release by GENL is released by GKP's broker the same morning!!??

Possibly company changing news, that could be confirmed within weeks at the most, given that the well is approaching TD - something else the BB update told us.

Why would they do that?? What's the hurry suddenly?

No news for weeks and then a sudden rush to push out anything and everything, and in particular the biggest possible news.

There was no operational need to squeeze out the BB news in that way. It is only weeks away from being released by GENL in one go, complete with flow rates and TD (or news of drilling deeper perhaps).

It is my belief that GKP needed to release this information to make certain all shareholders were aware of the potential major increase in known assets that could occur within a short period of only weeks.

BB with oil horizons equivalent to SH-1 would be a major step forward for GKP and if GENL continued with an aggressive drilling campaign, then it could be proved up fairly quickly, adding hugely to GKP OIP.

Any potential buyer of GKP would also realise that the company would be more expensive and it would be much harder to persuade shareholders to part with their shares cheaply.

GKP may have wanted to release this information to retain major shareholders and persuade them not to sell out to a predator cheaply. Equally, once in the public domain, the information could provide them a great deal of negotiating power in the event of any unofficial talks that might be ongoing.

GKP are certainly playing the game with all the pieces available to them.

Will it be enough to allow some more assets to prove up before a sale of the company?

A universally agreed draft oil law may well be all that will be needed now to spark off the sale.

Will the KRG/ICG still take up the 2007 law if they can't agree anything else?

Who needs to ask for books as gifts over the holidays, just keep reading these boards and lots of stuff about Kurd politics. Better than the latest bestseller for intrigue, twists and double crosses!

All the best

Dot

BARCLAYS OIL AND GAS FOCUS

December 14th 2011

By Andrew Stannard

"CHRISTMAS CRACKERS"

The AIM market has suffered like its FTSE big brother an uncertain year
but there are many gems on offer for brave investors looking for
excellent returns this christmas and new year.The aim resources sector
looks seriously oversold and now looks poised for a good recovery.
I have identified four stocks that could show impressive near term
growth to help your xmas go with a bang !


Gulf Keystone Petroleum * ( GKP )

SacOil Holdings Plc * ( SAC )

Victoria Oil and Gas * ( VOG )

Desire Petroleum * ( DES )