Gulf Keystone Initial Loads Of Production Facility Equipment Arrives

19th Jul 2010 07:41

LONDON (Dow Jones)--Gulf Keystone PLC (GKP.LN), said Monday that the initial loads of production facility equipment to the Shaikan field location and the commencement of the rig move by the AOS Discover-1 drilling rig to the Sheikh Adi-1 exploration well site, has arrived. MAIN FACTS: -The first pre-packaged production equipment units have arrived at the production facility construction site near the Shaikan-1 well location. -This equipment together with the oil storage tanks and truck loading facility will form the basis of an 18,000 bopd capacity oil production treating and truck loading facility. -This facility will be used during the long term production testing of the Sargelu oil reservoir in the Shaikan-1 discovery well. -Production testing will last for at least 18 to 24 months and accumulate valuable data related to reservoir characteristics and oil recovery factors. -The test volumes will generate Gulf Keystone's first oil production revenue in Kurdistan. -The AOS Discoverer-1 drilling rig has arrived at the Sheikh Adi-1 well site and rig up is 10% complete. -This well will be Gulf Keystone's first exploration well on the Sheikh Adi block in which the Company has an 80% working interest. -The well is planned to spud in August and will target the Cretaceous, Jurassic and Triassic formations. -Planned total depth, depending on well results, is 3,850 meters and drilling is expected to take 6 months. -The Company's estimated oil-in-place resource potential for the Sheikh Adi structure is in excess of one billion barrels. -Shares closed Friday at 67.50 pence, valuing the company at GBP456.45 million. -By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; [email protected] (END) Dow Jones Newswires July 19, 2010 02:41 ET (06:41 GMT)