19th Sep 2005 11:20
Gulf Keystone Petroleum Ld19 September 2005 19 September 2005 GULF KEYSTONE PETROLEUM LIMITED ("Gulf Keystone" or the "Company") Algerian Licence Ratification Gulf Keystone Petroleum, Ltd. (AIM-GKP), an independent oil exploration companyoperating in the Republic of Algeria, announces that it has receivednotifications that two Production Sharing Contracts ("PSC's") have now beenratified, having both been approved by Presidential Decrees. These two PSC'scover the blocks that Gulf Keystone was awarded in the sixth Algerianinternational licensing round which was concluded in Algiers on 23 April 2005.They are the Hassi Ba Hamou contract perimeter comprising blocks 317b, 322b3,347b, 348 and 349b in the Bechar Oused Namous basin, and one block on theBottena perimeter in the South East Constantine Basin, block 129. The contracts are for the research, appraisal, development and exploration ofhydrocarbons within the contract areas. Hassi Ba Hamou Perimeter The Hassi Ba Hamou perimeter covers an area of 18,380 square kilometres andcontains one existing gas field, HBH, which SONATRACH's engineers estimatecontains over 1 trillion cubic feet of gas in place. The HBH Field wasdiscovered in 1965 before the existence of the gas pipeline that now crosses theblock, and, thus, has never been developed and put into production. The HBH-1discovery well flowed at an initial rate of approximately 3 million cubic feetper day from porous sands above 3,200 feet depth. SONATRACH's interpretation ofthe previously acquired 4,069 kilometres of 2D seismic has identified eightadditional prospects and leads with combined exploratory potential of anadditional 4.4 trillion cubic feet of gas in place. Gulf Keystone plans to appraise the existing discovery, HBH-1, drill twoexploration wells, acquire 100 square kilometres of 3D seismic and 400kilometres of 2D seismic during the first three year phase of the contract. Bottena Perimeter The Bottena perimeter covers an area of 4,368 square kilometres and is situatednext to the eastern border of Gulf Keystone's Block 126a extending eastward tothe Tunisian border. The license area contains the Djebel Onk Field, which isexcluded from the license, and the Hassi El Kerma (HEK) Field which wasdiscovered in 2001 and which SONATRACH identifies as containing 178 millionbarrels of oil in place (27 million barrels defined as proven and probable).This is more than 2.5 times larger than the resources they attribute to DjebelOnk which to date has produced nine million barrels of oil. SONATRACH recentlydrilled two additional structures on the permit area, DDN (2000) and HCZ (2002).SONATRACH have estimated that these structures contain a combined 182 millionbarrels of oil in place. Using its 5,300 kilometres of 2D seismic, SONATRACH hasmapped an additional two prospects and 21 leads that they assign estimated oilin place resources to of more than 750 million barrels. Finally, SONATRACH has drilled four wells on what was the first hydrocarbondiscovery in the basin (1954), the Djebel Foua Field. SONATRACH has previouslytested gas at rates greater than eight million cubic feet per day from depthsabove than 3,000 feet. This field is only 20 kilometres from theTrans-Mediterranean Pipeline. Gulf Keystone intends to appraise the discoveriesHassi El Kerma and Djebel Foua, drill one exploration well and acquireadditional 2D and 3D seismic on the Bottena Perimeter. Todd Kozel, Chief Executive Officer of Gulf Keystone said: "We are delighted at the speed with which the Algerian Government has moved toissue these licence ratifications. Since being awarded the PSC's in April, wehave been preparing a comprehensive seismic and drill programme which we can nowseek to implement." Enquiries Evolution Securities: 020 7071 4300Robert Collins Citigate Dewe Rogerson: 020 7638 9571Martin Jackson / Rachel Lankester This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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