26th Apr 2005 16:06
Gulf Keystone Petroleum Ld26 April 2005 26 April 2005 GULF KEYSTONE PETROLEUM LIMITED ("Gulf Keystone" or the "Company") NEW EXPLORATION PERMIT ADDS TWO MORE ALGERIAN BLOCKS Gulf Keystone (AIM-GKP), an independent oil & gas exploration company, todayannounces that it has signed an exploration permit covering the BenguechaPermit, blocks 108 and 128 in north eastern Algeria's Constantine Basin. Thishas increased the Company's interests in the Republic of Algeria to 9 blockscovering nearly 33,216 square kilometres. The contract for these blocks, whichestablishes a joint venture between SONATRACH and Gulf Keystone, was a directnegotiation outside of the recent international bid round. In that bid round,Gulf Keystone was awarded two contracts with reserve estimates of 1.5 billionbarrels of oil equivalent in place. The contract for the Benguecha perimeter includes one existing oil fielddiscovered by SONATRACH in 1977, namely Ras Toumb, which flowed at initial ratesof 3,000 barrels of oil per day although the field is currently not producing.Gulf Keystone is currently shooting a 460 square kilometre 3D seismic survey duewest of the Ras Toumb field on Block 126a. The Company now plans to extend that3D seismic survey by approximately 100 square kilometres to cover the Ras ToumbField in anticipation of identifying additional infill developmental well sitesto be drilled under the contract in the field. The primary focus of the J V partners on the Benguecha permit will be thefurther appraisal of the Ras Toumb field and the exploration for additionalreserves. SONATRACH's interpretation of its previously acquired 4,457kilometres of 2D seismic on the permit has identified 7 additional prospects andleads, on one of which, OSD, SONATRACH has completed drilling and logging of thewell and has temporarily abandon the well awaiting testing equipment. Thefurther re-working and testing of this well, OSD-1, will be conducted by thenewly formed SONATRACH/Gulf Keystone joint venture. The Company has committed todrill 2 wells on the permit over the next three years as a minimum work program. Todd Kozel, Chief Executive Officer of Gulf Keystone said: "The award of the Benguecha Permit outside the international bid round is yetfurther confirmation of the strong and mutually beneficial relationship thatexists between Gulf Keystone, the Algerian Ministry of Energy and Mines andSONATRACH. We now have a range of blocks in Algeria that carry significantnear term production opportunities and substantial exploration upside potential." Enquiries Evolution Securities 020 7071 4300Robert Collins Citigate Dewe Rogerson 020 7638 9571Media: Martin Jackson / George CazenoveAnalysts: Kate Delahunty / Nina Soon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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