30th Dec 2005 07:00
Gulf Keystone Petroleum Ld30 December 2005 For release at 0700hrs 30 December 2005 GULF KEYSTONE PETROLEUM LIMITED ("Gulf Keystone" or the "Company") Operational Update Gulf Keystone Petroleum, Ltd. (AIM-GKP), an independent oil exploration companyoperating in the Republic of Algeria, announces details of its currentoperations. Block 126A (Gulf Keystone 100%) Gulf Keystone has completed drilling, coring and logging operations at the GRJ-2well on Block 126A in north eastern Algeria. Technical evaluation of the datareceived from the company's third party consultants has indicated that there arethree separate potential reservoir intervals which may have the potential tocontain hydrocarbons. A testing program for GRJ-2 will be implemented once Gulf Keystone's expertshave completed the design of the testing program and confirmed the availabilityof the required equipment. The directors believe that the testing program couldinvolve fracturing of the indicated reservoir sections which is intended toincrease the potential to intersect open fractures. The processing of the 460 square kilometre 3-D seismic survey in the southwestof Block 126A, acquired in 2005 by Gulf Keystone, is now complete and the GulfKeystone team will be using this 3-D to map and interpret the reservoir in orderto select a location for drilling in 2006. The application for a production license for the GKN field is progressing. GulfKeystone has made what the directors hope and believe to be the final submissionof documentation to the joint Sonatrach/Gulf Keystone management committee forBlock 126 A . The information has been passed to Sonatrach and Gulf Keystone isworking with Sonatrach to seek the final approval for the license from theAlgerian Ministry of Energy and Mines. As a result of the Gulf Keystone's successful well test on the GKS-2 welloriginally drilled and successfully tested as a discovery well by Sonatrach,Gulf Keystone has initiated the process of submitting an application for anearly production license on the GKS field which is an initial step for apermanent production license and a field development plan. The company will beworking with Sonatrach through the Sonatrach/Gulf Keystone management committeeto seek the approval for a short term production license from the Ministry. Block 129 (Gulf Keystone 100%) Gulf Keystone is calling for tender for the processing and interpretation of412 Km2 of 3-D seismic acquired by Sonatrach in 2005 before Gulf Keystone wasawarded the Block in the 6th International Bid Round. The analysis of availablegeological and geophysical data on four (4) existing discoveries previouslyidentified by Sonatrach and approximately 5300 kilometres of 2-D seismicacquired by Sonatrach which identified an additional twenty-two (22) leads willbe used to develop an appropriate ongoing work program for Block 129. Blocks 108/128 (Gulf Keystone 100%) Gulf Keystone has completed processing 153Km2 3-D seismic acquired by GulfKeystone in the 3rd quarter of 2005 over the existing Ras Tomb oil fieldpreviously discovered and produced by Sonatrach. The acquisition of this 3-Dseismic fulfils the minimum work program for 3-D seismic under the first term ofthe contract for Blocks 108/128. The purpose of the 3-D seismic acquisitionover the Ras Tomb field is to seek to more highly define the reservoir and thefield so that Sonatrach/Gulf Keystone can identify appropriate locations fordrilling new wells for additional field development. Gulf Keystone will also evaluate the existing Sonatrach discovery on the OSDstructure and the 4457 kilometres of 2-D seismic previously acquired bySonatrach to develop a work program to assess Blocks 108/128. Hassi Ba Hammou Perimeter (Gulf Keystone 100%) Gulf Keystone's technical staff, in conjunction with our partner Sonatrach andconsultants, have been analysing 3rd party data on this permit which consists of5 Blocks covering approximately 18,000 square kilometres in the gas producingwestern region of Algeria. Specifically, Gulf Keystone has been focussing onthe HBH discovery made by Sonatrach. This field was discovered by the HBH-1well and successfully appraised by the HBH-2 and HBH-3 wells. A 3-D seismicacquisition program and an appraisal drilling program are being designed for thefurther appraisal and development of this discovery. Further, the company is reviewing approximately 4703 kilometres of existing 2-Dseismic previously acquired by Sonatrach in respect of an additional ten (10)potential leads identified by Sonatrach and Gulf Keystone to assess any furtherupside potential of the permit area. Portfolio Management Gulf Keystone has engaged Tristone Capital Limited, an advisory firmspecialising in the oil and gas industry, to advise it in relation to thepossibility of bringing in a potential partner or partners into a number of thecompany's Algerian assets. The strategic purpose of this process is to seek tobring in a partner or partners that can assist the company in the accelerationof the commercialisation of its current portfolio of assets while enabling GulfKeystone to not only manage its future financial commitments but also takeadvantage of the opportunities that exist for Gulf Keystone to build and widenits asset portfolio within the region. Todd Kozel, Chief Executive Officer of Gulf Keystone Petroleum said: "Our operations in Algeria are developing well after another busy period forGulf Keystone Petroleum. I believe that the company can look forward to 2006with renewed optimism as we deliver on our strategic plan." Enquiries Gulf Keystone Petroleum: 020 7514 1400Todd Kozel, CEO Citigate Dewe Rogerson: 07834 767054George Cazenove 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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