10th Jan 2008 13:02
Gulf Keystone Petroleum Ld10 January 2008 GULF KEYSTONE PETROLEUM LIMITED ("GULF KEYSTONE" OR THE "COMPANY") ALNAFT APPROVES GKN & GKS DEVELOPMENT PLAN SONATRACH (Algeria's national oil company) and partner Gulf Keystone PetroleumLtd (AIM: GKP) are pleased to announce the approval by ALNAFT (the HydrocarbonNational Agency), of the proposed Development Plan for the GKN and GKS oilfields (60% Working Interest, 30% Net Revenue Entitlement) located in NorthAlgeria, South East Constantine basin, Block 126a. On 25 June 2007, prior to receiving ALNAFT'S approval, the SONATRACH / GulfKeystone joint Management Committee for the 126a block unanimously approved thedeclaration of commerciality for the GKN and GKS fields. SONATRACH and Gulf Keystone will work together to manage this field development. The field Development Plan envisages producing oil from the GKN-1 well(currently producing at approximately 1,200 bopd gross) and bringing the GKS-2well on stream as soon as practicable. As part of the Development Plan, SONATRACH and Gulf Keystone intend to build apipeline to connect GKS-2 to the existing evacuation pipeline so that this wellcan begin production. The GKS-2 well produced at a rate equivalent to 4,586bopd and 4.61 mmcfgd when it was tested in 2005. The two fields will then bedeveloped in a staged process through the acquisition of a 3-D seismic surveyand a development drilling programme jointly conducted by SONATRACH and GulfKeystone. The plateau production rate is expected to be c3,000 gross bopd which ispresently constrained by available facilities. The GKN-GKS oil field is presently the only partnership project in developmentphase in northern Algeria. 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 4 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. Todd Kozel, Executive Chairman and Chief Executive of Gulf Keystone said: "The Declaration of Commerciality by SONATRACH in June of last year and today'sannouncement of Approval by ALNAFT of the GKN and GKS field Development Plan aresignificant milestones for Gulf Keystone. Gaining a share of productionrevenues from the GKN and GKS fields, Gulf Keystone's first, evolves andbalances Gulf Keystone's asset base by adding production to an already excitingAlgerian exploration portfolio. "We look forward to working with SONATRACH to jointly develop and produce theGKN and GKS fields." Enquiries Gulf Keystone Petroleum: +44 (0) 20 7514 1400 Todd Kozel, Executive Chairman and CEO Ali Al-Qabandi Hoare Govett Limited: +44 (0) 20 7678 8000 Andrew Foster Tristone: +44 (0) 207 3555800 Simon 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 ExchangeRelated Shares:
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