Gulf Keystone Petrol GKP Sheikh Adi-2 Exploration Well Discovery

  Gulf Keystone Petrol (GKP) - Sheikh Adi-2 Exploration Well Discovery

RNS Number : 6097Q
Gulf Keystone Petroleum Ltd.
08 November 2012




 Not for release, publication or distribution in or into the United States or
 jurisdictions other than the United Kingdom and Bermuda where to do so would
    constitute a contravention of the relevant laws of such jurisdiction.

                                      

                                      

8 November 2012

                                      

                                      

                   Gulf Keystone Petroleum Ltd. (AIM: GKP)

                      ("Gulf Keystone" or "the Company")

                                      

                   Sheikh Adi-2 Exploration Well Discovery

Gulf Keystone  today  announces  that Gulf  Keystone  Petroleum  International 
Limited, Operator under the Production Sharing Contract relating to the Sheikh
Adi Block in  the Kurdistan Region  of Iraq  dated 16 July  2009 ("PSC"),  has 
notified the Sheikh Adi Block Management Committee of a discovery made on  the 
Sheikh Adi Block with effect from 7 November 2012.

The notification of  the discovery follows  the completion of  a well  testing 
programme  of  the  Sheikh  Adi-2  exploration  well  on  the  block,  located 
immediately to  the west  of the  Company's Shaikan  Block, which  is a  major 
commercial discovery.



Sheikh Adi-2 spudded in  May 2012, 1.45  km to the north  of the Sheikh  Adi-1 
exploration well,  and  was  drilled to  a  total  depth of  2,754  metres  in 
September 2012. In the course of  the Sheikh Adi-2 well testing programme  the 
Company has successfully  tested four  reservoir zones at  measured depths  of 
between 1,420 metres  and 1,700 metres,  achieving total stabilised  aggregate 
flow rates of 4,235 barrels of oil  per day across the Upper Butmah,  Adaiyah, 
Mus and Sargelu formations in  the Jurassic. Provisional results indicate  the 
oil gravity is similar  to that found  in the same  formations in the  Shaikan 
Block namely 15-18 API.

In line with the Sheikh Adi PSC, following the notification of discovery,  the 
Operator will submit  a Discovery Report  to the Sheikh  Adi Block  Management 
Committee within 30 days.

Gulf Keystone is  the Operator of  the Sheikh Adi  Block with an  80 per  cent 
working interest, while the  Kurdistan Regional Government has  a 20 per  cent 
carried interest.

Todd F. Kozel, Gulf Keystone's Executive Chairman and Chief Executive  Officer 
commented:



"We are very pleased with the outcome of the second exploration well on the
Sheikh Adi Block, which is in on trend with Shaikan, our major commercial
discovery declared earlier this year. This most recent exploration success
points to the significant potential for further growth and future synergies
across our world-class acreage in the Kurdistan Region of Iraq."





Enquiries:



Gulf Keystone Petroleum:                   +44 (0) 20 7514 1400
Ewen Ainsworth, Finance Director
Anastasia Vvedenskaya, Investor Relations
Strand Hanson Limited                      +44 (0) 20 7409 3494
Simon Raggett / Rory Murphy / James Harris
Mirabaud Securities LLP                    +44 (0) 20 7878 3362
Peter Krens
Pelham Bell Pottinger                      +44 (0) 20 7861 3232
Mark Antelme



or visit: www.gulfkeystone.com



Notes to Editors:



§ Gulf  Keystone Petroleum  Ltd. (AIM:  GKP)  is an  independent oil  and  gas 
exploration

 and production company focused on exploration in the Kurdistan Region  of 
Iraq.

§ Gulf  Keystone Petroleum  Limited is  registered in  Hamilton, Bermuda  with 
further offices

in Erbil, Kurdistan (Iraq), Algiers, Algeria and London, UK.

§ Gulf  Keystone  Petroleum  International  (GKPI)  holds  Production  Sharing 
Contracts for

 four exploration blocks in Kurdistan, including the Shaikan, Sheikh  Adi, 
Ber Bahr and

 Akri-Bijeel blocks.

§ GKPI is the Operator of the Shaikan Block with a working interest of 75  per 
cent and is

 partnered with Kalegran Ltd. (a 100 per cent subsidiary of MOL  Hungarian 
Oil and Gas

 Plc.) and  Texas Keystone Inc.,  which have working  interests of 20  per 
cent and 5 per

 cent respectively. Texas  Keystone Inc. holds its  interest in trust  for 
Gulf Keystone,

 pending transfer of its interest to the Company. 

§ Shaikan is  a major  commercial discovery with  independently audited  gross 
oil-in-place

 volumes of between 12.4 billion barrels to 15 billion barrels  calculated 
on the P90 to

 P10 basis, with a mean value of 13.7 billion barrels.

§ The Company's  shares have  traded on  the AIM  market of  the London  Stock 
Exchange

 since listing on 8 September 2004.





Not for release, publication  or distribution, directly  or indirectly, in  or 
into the United  States or  jurisdictions other  than the  United Kingdom  and 
Bermuda where to do so would  constitute a contravention of the relevant  laws 
of such jurisdiction. This announcement (and the information contained herein)
does  not  contain  or  constitute  an  offer  of  securities  for  sale,   or 
solicitation of  an offer  to purchase  securities, in  the United  States  or 
jurisdictions other than the United Kingdom  and Bermuda where to do so  would 
constitute a  contravention of  the relevant  laws of  such jurisdiction.  The 
securities referred to herein have not  been and will not be registered  under 
the US Securities Act of 1933, as amended (the "Securities Act"), and may  not 
be offered or sold in the  United States unless the securities are  registered 
under the Securities Act, or  an exemption from the registration  requirements 
of the Securities Act is available. No public offering of the securities  will 
be made in the United States.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


DRLEAEFPEFSAFEF -0- Nov/08/2012 07:01 GMT
 
Press spacebar to pause and continue. Press esc to stop.