Gulf Keystone achieves high flow rate on Shaikan-3

14th Feb 2011 14:11

Gulf Keystone said the Shaikan-3 shallow appraisal well in the Kurdistan Region of Iraq has achieved a flow rate of 9,800 barrels of oil per day (bopd). The higher rate achieved by Shaikan-3, an improvement of some 30% on the previously reported rate of 7,480 bopd for Shaikan-1, is due to the removal of formation plugging around the well bore. Since data gathered from Shaikan-1 also indicates formation plugging a similar acid treatment will be performed on this well, the company said.The company has a 75% interest in the Shaikan block."The headline number of 9,800 bopd is very good, and so far, it is the highest stabilised flow rate reported by Gulf Keystone Petroleum (GKP) from Shaikan," said financial services group Matrix. "However, longer term, we remain cautious on GKP and would recommend locking in some profits on share-price strength today. Shaikan has the potential to become a very large oil field, but there are still substantial risks on estimated reserves and longer-term well productivity, in our opinion," Matrix added.