Gulf Keystone Provides an Update in Sheikh Adi Block

Source: www.gulfoilandgas.com 9/14/2011, Location: Middle East

Sheikh Adi-1 exploration well reached TD in the Kurre Chine C section of the middle Triassic and will now be suspended pending further testing once fracture treatment parameters and logistics have been finalised. The rig will now move to the Shaikan-5 location.

The Sheikh Adi-1 exploration well also reached a depth where further drilling was not possible due to hole size and casing integrity limitations combined with high formation pressures. Total depth was called at 3,800 metres measured depth or 3,780 metres true vertical depth. Sheikh Adi-1, like Shaikan-2, stopped drilling after reaching the newly designated Kurre Chine C formation. While casing pressure integrity issues prevented a flow test of this interval, a complete set of well logs was obtained.

Based on these well logs, plus those from the Cretaceous, Jurassic and the upper Triassic, oil-in-place resources of 1 billion to 3 billion barrels (P90 to P10) with a mean of 1.9 billion barrels of oil-in-place have been assigned to the western portion of the Sheikh Adi Field by Dynamic Global Advisors (DGA), the Company’s independent analysts in Houston. The gross pay interval in Sheikh Adi-1 is 2,790 metres, 35% more than Shaikan-1.


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