Gulf Keystone Completed Shaikan-2 Well to Total Depth

Source: www.gulfoilandgas.com 8/18/2011, Location: Middle East

Gulf Keystone announces that it has made a new Triassic discovery with the Shaikan-2 Appraisal Well, drilled approximately nine km to the southeast of the Shaikan-1 discovery well in the Kurdistan Region of Iraq.

Gulf Keystone has completed drilling of the Shaikan-2 Appraisal Well to a TD (total depth) of 3,300 meters in the middle Triassic, following which a flow test has been performed in the newly discovered Kurre Chine C zone over a 80 meter interval (3,195m to 3,275m). This new zone is highly pressured and correlates with the high-pressure zone penetrated at the bottom of Shaikan-1. The Kurre Chine C flow test in Shaikan-2 has achieved variable flow rates up to a maximum recorded rate of 4,450 barrels of 36 degree API oil per day with associated gas of 813,000 scf per day through a 36/64" choke. After success with this first test, the Company plans to continue with its programme of Shaikan-2 testing in the Triassic and Jurassic.

The Company has a 75 percent working interest in the Shaikan block and is partnered with the MOL subsidiary, Kalegran Ltd., and Texas Keystone Inc. that have the remaining 20 and 5 percent working interests respectively.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented: "The new Triassic discovery is yet another chapter in our Shaikan success story. As a result of these successful Shaikan-2 well test results, oil volumes that will eventually be attributed to this zone, will be in addition to the already impressive 4.86 to 10.8 billion barrels of gross oil-in-place already discovered in the Shaikan field."


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