Gulf Keystone Petroleum 's (GKP) continued progress in the Kurdistan region of Northern Iraq has been highlighted by a new oil & gas discovery, along with an update on the development of the Shaikan production facility (PF-1). However, the group's share price performance suggests investors have become increasingly wary over the outcome of the long-running legal dispute with Excalibur Ventures.
A number of tests have been conducted at the Bakrman-1 well, which is part of the Akri-Bijeel block, in which Gulf Keystone has a 20 per cent working interest. According to the well’s operator – MOL Hungarian Oil and Gas – drilling within the Triassic layer at Bakrman-1 resulted in calculated daily flow rates of around 2,616 barrels of light oil per day (bopd) and a gas rate of about 5.86m standard cubic feet per day. The well testing programme is expected to be completed by the end of April.
In addition to continued exploration success, Gulf Keystone also confirmed that all the equipment modules for the PF-1 production facility at Shaikan have now been delivered, and are in the process of being assembled, with completion expected next month. The well is designed to produce 20,000 bopd – as is Shaikan PF-2 – which will be developed from midway through the year. Near-term, Shaikan-10, the first development well, is due to be spudded by the end of the first quarter, along with Shaikan-7.
