Gulf Keystone find gas as well as oil at Shaikan-2

22nd Mar 2011 22:12

Oil explorer Gulf Keystone surrendered some of its recent fulsome gains Tuesday after it provided an update on the results of its tests on the Shaikan-2 appraisal well in Kurdistan.Shaikan-2 has achieved short term indicated rates of 10,144 barrels of oil per day (bopd) and a stabilised flow rate of 8,064 bopd of 26 degree API (American Petroleum Institute) oil. The oil gravity of 26 degrees API is significantly better (lighter) than Shaikan-1 & 3, both of which are currently producing 18 degree API oil. The company anticipates that sustained rates in excess of 10,000 bopd could potentially be achievable at Shaikan-2, and that with lighter oil and associated gas recovery rates could be enhanced. Broker Daniel Stewart said it was encouraged by the flow rates at Shaikan-2 as well as the presence of lighter oil. The test drilling also produced gas at a gas oil ratio of 302 standard cubic feet per barrel, which the broker regarded as a positive thing, "in as much as it enhances recovery rates and improves the economics of the discovery.""To have a better understanding of the volume potential in Shaikan we are awaiting the determination of the oil/water contact point. Currently the anticipated oil/water contact point is at 2,230m," said Daniel Stewart analyst Richard Nolan.