11th Apr 2005 07:00
Gulf Keystone Petroleum Ld11 April 2005 11 April 2005 GULF KEYSTONE PETROLEUM LIMITED ("Gulf Keystone" or "the Company") Gulf Keystone Awarded Two blocks in Algeria's 6th International Bid Round Gulf Keystone Petroleum, Ltd. (AIM-GKP), an independent oil exploration companyoperating in the Republic of Algeria, announces that it has been awarded twoexploration blocks in Algeria's 6th international licensing round. The awards were announced on April 9, 2005. Gulf Keystone's awards compriseblock 129 on the Bottena perimeter in the South East Constantine Basin andblocks 317b1-322b3-347b-348-349b on the Hassi Ba Hamou perimeter in the BecharOued Namous basin. Block 129 is located due east of Block 126a, which is currently operated by GulfKeystone, and covers an area of 4,368.55 km(2). The block contains two existingSONATRACH discoveries, the Djebel Onk oil field and the Djebel Foua gas field.SONATRACH has previously acquired 5300 km of 2D seismic analysis and 379 km of3D seismic analysis from which it has identified two exploration prospects andnine leads. The existing gas pipelines from Hassi R'mel to Tunisia and Europecross the block. Hassi Ba Hamou blocks 317b1-322b3-347b-348-349b cover an area of 18,380 km(2)and contain one existing SONATRACH discovery HBH-1. SONATRACH had previouslyacquired 4069 km of 2D seismic analysis and from that seismic it has identifiedfive exploration prospects. Whilst Gulf Keystone will have the benefit of the existing discoveries on theseblocks, it will also actively pursue the exploration upside of both blocks. TheCompany has undertaken to drill three exploration wells. Todd Kozel, Chief Executive Officer of Gulf Keystone said: "We are extremely excited about the award of these two blocks. Block 129 expandsour current position in the South East Constantine basin, while Hassi Ba Hamousecures a position in an entirely new prospective basin in Algeria with strongupside potential." Enquiries Evolution Securities 020 7071 4300 Stuart Andrews Citigate Dewe Rogerson 020 7638 9571 Martin Jackson/Kate Delahunty Notes to Editors Introduction Gulf Keystone has a Production Sharing Contract with SONATRACH, the AlgerianNational Oil Enterprise, for Block 126 in the north eastern area of Algeria nearto the Tunisian boarder. The Company has operated in the Algerian oil sectorsince 2001 and its management team has extensive experience in the NorthAfrican, Middle Eastern and United States operating and regulatory environments. Algeria Algeria is a member of OPEC (the Organisation of Petroleum Exporting Countries)and is estimated by an EIA Report to have proven reserves of 37.9 billion boe.These reserves are estimated to represent 0.9% of the world's crude oil reservesand 2.6% of the world's natural gas reserves. Algeria is the world's 16thlargest oil producer and the 6th largest gas producer, with its 2003 oilproduction totalling approximately 1.86 million bbl/d. Algeria is a majorexporter of oil and gas, and the National Council of Energy believes that thecountry contains vast undeveloped oil and gas reserves. Over the last fewyears, significant oil and gas discoveries have been made, largely by foreigncompanies in partnership with Sonatrach. Algeria's oil sector, unlike that ofmost OPEC countries, has been open to foreign investment for more than a decadeto assist with the development of its oil reserves. Business Block 126 is at an early stage of development. The Company intends to grow theproven and probable reserves by a programme of further drilling, testing andevaluation of the GKN field and the GKS, GRJ, OGZ and FKN discoveries. It isfurther intended to pursue the exploration drilling of identified prospects andleads. Block 126 had aggregate estimated remaining proven and probable reservesof approximately 221 MMboe of which Gulf Keystone's share is approximately 107MMboe. The Company considers that Block 126 has significant upside potential inpossible and lead prospective resources of 959.6 MMSTB and 2.6 Tcf of gas. Strategy Management intends to exploit its position as an independent exploration companyoperating in Algeria by continuing to drill exploratory wells on prospectsshowing strong perceived geophysical evidence of commercially viable oil and gasreserves. At the same time, it intends to continue to drill development wellsin fields containing proven reserves. Specifically, the Company currently intends to focus on (i) the development ofthe GKN field which contains a producing well; (ii) carrying out appraisal workon prospects GRJ, OGZ, GKS and FKN; (iii) conducting further exploration workson new prospects and leads on Block 126. The Company intends to participate infuture bid rounds to attempt to secure additional blocks in Algeria and toevaluate other oil and gas prospects in North Africa and the Middle East. Inaddition, the Company intends to seek opportunities to partner with new andexisting operators in Algeria such as SONATRACH. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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