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Gulf Keystone surges

Oil explorer Gulf Keystone has drilled what could be its best Kurdistan well yet - and the shares have doubled since we said buy
January 25, 2012

The Shaikan-4 appraisal well may be the best that Gulf Keystone Petroleum has yet drilled in the Kurdistan region of Iraq, according to the latest update from the explorer. The well is drilling 6km to the west of the original discovery well and flowed up to 4,970 barrels of oil per day plus gas from the first two well tests. Five further tests are planned for the well, in an appraisal the scale of the Shaikan block, which consultants estimate could hold over 10 billion barrels of oil.

IC TIP: Buy at 276p

Concurrently, the company is drilling the Shaikan-5 and Shaikan-6 appraisal wells and is exploring at Ber Bahr with operating partner Genel Energy.