Encouraging drilling result for Gulf Keystone

5th Aug 2010 16:40

Shares in Kurdistan-focused oil explorer Gulf Keystone headed higher for the second day in succession on Thursday as the company followed up its midweek operations update with an encouraging test drilling result on its Shaikan-1 discovery well.The results of further testing of the Butmah (1783m to 1814m) section of the Jurassic on its Shaikan-1 discovery well showed final production rates during this week's re-test were measured at 4650 barrels of oil per day (bopd) with an API (American Petroleum Institute) gravity of 17.68 degrees and a gas oil ratio of 34 standard cubic feet per barrel of oil at a flowing wellhead pressure of 295 pounds per square inch. This is in line with the previously estimated rate."I am encouraged by this verification of the flow capacity of the Butmah formation," said the company's chief operating officer John Gerstenlauer. "The well has now demonstrated an aggregate flow capacity of over 20,000 bopd from just a fraction of the total prospective interval. I look forward to further testing and also to commercial oil sales from the long term test of the Sargelu, commencing later this year," Gerstenlauer added.