Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Gulf Keystone Petroleum begins drilling Shaikan-6 well

Gulf Keystone has said drilling is underway on the Shaikan-6 well in Kurdistan. Work began on December 16 on this the company’s fourth deep appraisal well and the tenth in total across all its projects in the semi-autonomous region of northern Iraq.   
Gulf Keystone Petroleum begins drilling Shaikan-6 well

Gulf Keystone (LON:GKP) has said drilling is underway on the Shaikan-6 well in Kurdistan.

Work began on December 16 on this, the company’s fourth deep appraisal well and the tenth in total across all its projects in the semi-autonomous region of northern Iraq. 

Chief operating officer John Gerstenlauer said: “This number of completed and current exploration and appraisal wells comfortably places Gulf Keystone among top three operators in the region. 

“As part of our high impact drilling campaign, planned and funded through 2012, the Shaikan-5 and Shaikan-6 appraisal wells will provide us with better understanding of the flanks of the massive Shaikan structure and its yet untapped resources.

Shaikan is estimated to contain 8 billion barrels of crude calculated on a P90 basis – meaning the oil has a 90 per cent certainty of being produced.  The P10 value is 13.4 billion barrels, giving a mean figure of10.5 billion barrels.  

The world class nature of the block and the company’s other assets mean GKP is now being talked about as a potential bid target – so much so it was yesterday forced to deny takeover speculation swirling the Square Mile.

Shaikan is the company’s most advanced prospect and has the potential to be the world’s next super-giant oil find. The company currently holds a 75 per cent interest.

According to analysts the nearby Ber Bahr field could be even bigger. 

It is operated by Turkish outfit Genel Energy, which has a 40 per cent interest, as has Gulf Keystone. The remainder is owned by the Kurdistan Regional Government.

Gulf Keystone has a 20 percent working interest in the Akri-Bijeel, which is operated by of MOL Group, which holds an 80 percent working interest in the block.

And it recently announced plans to sell its interest in this field to concentrate on other prospects.

Gulf Keystone has made remarkable progress in the last 18 months with a high impact drilling programme that wouldn’t look out of place at one of the larger independents.

A recent US$200 million share placing underlined the shareholder support the company enjoys and has allowed the explorer to move full throttle into the next phase of development.

In a research note published recently, American investment bank Citi said Kurdistan is set for a “major period of news flow” as independent exploration companies embark on ambitious drilling campaigns in the semi-autonomous region.

Based on data from the US Geological Society, Kurdistan could hold over 50 billion barrels of oil – which means it is comparable in scale to Libya.

Counterbalancing this excitement is uncertainty over the production sharing contracts being issued by Kurdistan, which are still being disputed by the authorities in Baghdad.

These concerns are further exacerbated by the news that some oil companies aren’t receiving full payment for their oil exports.

“Both issues are unlikely to be resolved until and Iraqi oil and gas law is ratified, in our view,” Citi said in the recent note penned by Michael Alsford and Mukhtar Garadagh.

Ian_55ae0ddd437b7.jpg


Register here to be notified of future GKP Company articles
View full GKP profile

Gulf Keystone Petroleum Limited Timeline

Related Articles

Sound Energy gives us two for the price of one
November 25 2016
Here the news in full from Sound, broker comment and background.
shutterstock_10034194.jpg
August 04 2016
Chief executive Ravi Kailas called the cash injection a “huge endorsement” of the company’s operations and its growing position in the power market on the sub-continent.
Offshore oil operations, Ireland
July 11 2016
Arnstein gives some 10.3p per share for his net valuation Lansdowne’s stake in Barryroe, including 6p per share for an initial development which would target 70mln barrels of oil.

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.