10th Jan 2005 09:23
Gulf Keystone Petroleum Ld10 January 2005 10 January 2005 GULF KEYSTONE PETROLEUM LIMITED ("Gulf Keystone" or "the Company") Progress Report Gulf Keystone Petroleum, Ltd. (AIM-GKP), an independent oil exploration companyoperating in the Republic of Algeria, today provided the following progressreport on the Company's activities. Acquisition of 3D Seismic Gulf Keystone announces that it has signed a contract with E.NA.GEO (theAlgerian national seismic company) to conduct two 3D seismic surveys on theCompany's Block 126a license in northern Algeria. These surveys will build onthe results of a 2D seismic survey that the Company conducted in 2004. The first survey is to start in mid-January 2005. It will cover an area of 460km2 over the southwestern portion of the license and include the OBA, EKG, RTB-Wand CEJ Triassic prospects. Gulf Keystone believes the area has potential fornew discoveries on exploration prospects generated by the previous 2D surveysand is on the structural continuation of a nearby oil field discovered andproduced by Sonatrach, the Algerian national oil company. This survey has twomain purposes. Firstly, to more accurately map those exploratory prospects withsignificant reef potential that were indicated in the 2D survey. Secondly, tobetter define the development drilling programme expected to follow on from theCompany's next exploratory well, the RTBW-1, which the directors believe to be awesterly extension to Sonatrach's Ras Toumb Field in neighboring Block 108. The second 3D survey, which is expected to commence in May 2005, will cover a430 km2 area in the central, currently productive portion of Block 126a. Theprimary purpose of this survey is to attempt to maximize the appraisal/development drilling success rate, and oil production results in this area,beyond what can reasonably be expected relying solely on the existing 2D seismicgrid. This survey will concentrate on Gulf Keystone's planned 2005 and 2006exploitation of the OGZ and GKS structures which have already successfullytested oil, but have not yet been evaluated through further appraisal/development drilling. Saipem Drill Rig 5832 Commissioning On 11 October 2004, Gulf Keystone announced the signing of a contract withdrilling contractor Saipem S.p.A. for Saipem's Drilling Rig 5832. The rig,which has now arrived in Algeria is currently being assembled under GulfKeystone's supervision in Hassi Messaoud, Algeria and undergoing commissioningtests, is expected to be operational shortly. The rig will then be moved ontolocation with the spudding of the first well GKS-3S. Gulf Keystone will make anannouncement when rig 5832 mobilizes to location and an exact spud date isconfirmed. Rig 5832 is capable of drilling to a depth of 6,000 metres with a 5-inch drillstring. The contract covers work over and drilling with a guarantee of 365 daysof work plus the option of two six month extensions. Todd Kozel, Chief Executive Officer and Vice President of Gulf Keystone said: "This is the start of an exciting year for Gulf Keystone. With a drilling rigabout to move on location and two blocks of 3D seismic about to shoot, we cannow begin the job of exploiting the significant upside potential of our Block126a." Enquiries Citigate Dewe Rogerson 020 7638 9571 Martin Jackson George Cazenove This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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