24th Oct 2005 11:31
Gulf Keystone Petroleum Ld24 October 2005 24 October 2005 Gulf Keystone Petroleum Limited ("Gulf Keystone" or "The Company") GKS-3 Well Update Gulf Keystone (AIM - GKP.L), an independent oil and gas exploration companyoperating in the Republic of Algeria, today announces a non-commercial well teston its GKS-3 appraisal well on Block 126A in Algeria. The well was drilled to3,981 metres and tested but failed to produce hydrocarbons from the fracturedlimestone reservoir section. Because of the complexity of the fractured carbonate reservoir, the company andits advisors had always assumed 50% drilling success rates. Consequently, thesewell results fit with previous economic and risk modelling and expectations, andthe company does not perceive any negative economic impact on the reserves ofthe GKS field. Indeed, Gulf Keystone is optimistic about the GKS field whichrecently tested the discovery well GKS-2 at 4,586 barrels of oil per day and4.61 million cubic feet of gas per day. The company will now move the rig and equipment to the GRJ field located in thesoutheast of Block 126A to await the completion of the drilling of the GRJ-2well and to test both the GRJ-1 and GRJ-2 wells. Todd Kozel, CEO of Gulf Keystone Petroleum, said:"While this GKS-3 result is disappointing, we have begun the process of applyingfor a production licence for the GKS field following the successful testing ofthe GKS-2 well. The company will now be focusing on both moving the GKSstructure into commercial production and drilling the GRJ-2 well and testing theGRJ-1 well." Gulf Keystone (0207 514 1400)Todd Kozel - Chief Executive Officer Citigate Dewe Rogerson (020 7638 9571)Media: George CazenoveAnalysts: Nina Soon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Gulf Keystone Petroleum