TIDMGKP
RNS Number : 8143D
Gulf Keystone Petroleum Ltd.
02 May 2013
Not for release, publication or distribution in or into the
United States or jurisdictions other than the United Kingdom and
Bermuda where to do so would constitute a contravention of the
relevant laws of such jurisdiction.
2 May 2013
Gulf Keystone Petroleum Ltd. (AIM: GKP)
("Gulf Keystone" or "the Company")
Gulf Keystone set for Significant Production Growth
Gulf Keystone, a leading independent E&P operator in the
Kurdistan Region of Iraq, is pleased to provide an update on its
four blocks in the Kurdistan Region of Iraq, including the world
class discoveries at Shaikan and Sheikh Adi, as well as Akri-Bijeel
and Ber Bahr.
Background
With the Shaikan commercial discovery alone, Gulf Keystone has
one of the world's largest onshore conventional oil & gas
developments with a Pmean 13.7 billion barrels of gross
oil-in-place as set out by Dynamic Global Advisors, independent
Houston-based exploration consultants. A recent report by Goldman
Sachs highlights the scale of the Shaikan development and the fact
that in 2015 the global production increase will in part come from
the Shaikan field*. The Company continues to be highly active with
the drill bit, in order to further prove the value of its
blocks.
Today Gulf Keystone is on the verge of moving into a phase of
significant production, with the capacity to produce up to 40,000
barrels of oil per day ("bopd") from Shaikan in the coming months
and up to 400,000 bopd in the coming years. The Company will be a
key contributor in meeting the Kurdistan Regional Government's oil
production targets of 1 million bopd in 2015 and 2 million bopd by
2019.
Considerable progress is being made on the regional pipeline
infrastructure development and the Company's increasing production
will be matched by the available export capacity. The size and
quality of the Company's fields is now increasingly recognised and
a number of the world's largest oil companies, including
ExxonMobil, Chevron and Total, are now following Gulf Keystone's
lead and commencing active work programmes in the Kurdistan Region
of Iraq.
*Goldman Sachs: April 12, 2013 - "380 projects to change the
world. From resource constraint to infrastructure constraint"
Commenting on today's announcement, Todd Kozel, Executive
Chairman and CEO, said:
"As one of the first companies to see the potential of the
region, over the last five years Gulf Keystone has drilled or
participated in nearly 20 wells and remains one of the most active
operators in the Kurdistan Region of Iraq. Shaikan is the largest
onshore development worldwide today not in the hands of a major
operator. However, we believe that we have only scratched the
surface of the true value of our blocks and our ongoing exploration
and appraisal activity is expected to result in further
upside."
"The Company is encouraged by recent reports from a variety of
sources, including political spokespersons, regarding the close and
burgeoning ties between the Kurdistan Region of Iraq and Turkey,
which the Company believes presents further transformational
progress for the region. In this context, Gulf Keystone will play a
major role as a co-host of the 2nd International Energy Arena
Conference in Erbil on 30 May, a meeting place for key political
and industry decision makers on the energy cooperation between the
Kurdistan Region of Iraq and Turkey."
"I therefore strongly believe that there is considerable
momentum in the development of Kurdistan's vast natural resources
and Gulf Keystone is in a prime position to benefit as the region
moves to this next stage."
"Our remarkable journey continues and I remain indebted to our
hosts in the Kurdistan Regional Government and to the outstanding
team within our Company. We have never been more excited about the
future."
Highlights
Production & Development
-- Significant operational progress made in the last 3.5 years
between the Shaikan-1 discovery in 2009 and the submission of the
Shaikan Field Development Plan ("FDP") in early 2013, which is
currently being reviewed by regulatory authorities
-- Two new production facilities at Shaikan (PF-1 & PF-2) nearing completion
-- 2013 production capacity of 40,000 bopd, expected to increase to 150,000 bopd in 2015
Infrastructure
-- Gulf Keystone's ramp up in production fully aligned with the
region's ongoing infrastructure development
-- Alternative transport options exist for Gulf Keystone's crude
whilst the Shaikan pipeline is constructed, including the ability
to truck and accessing growing pipeline infrastructure, including a
planned oil pipeline with initial capacity of 300,000 bopd to the
Fishkabur pump station on the border with Turkey expected to
complete in 2013
Exploration & Appraisal
-- Extensive drilling campaign continues with the Company's 18th
and 19th wells: Shaikan-7 deep exploration well & Shaikan-10
development well to spud in Q2 2013
-- Following recent success of the Sheikh Adi-2 well, appraisal
drilling is planned for the 1.9 billion barrel Sheikh Adi field
(independently audited P50 gross oil-in place estimate), as well as
further exploration work on the block
-- Extensive exploration and appraisal programme is ongoing on
the Akri-Bijeel block with two discoveries, Bijell-1 and Bakrman-1,
made to date
Financial
-- Fully funded for the 2013 work programme and aiming to
achieve additional revenues through significant production
growth
Corporate
-- The Company will play a major role at the 2nd International
Energy Arena Conference co-hosted by The Strategic Technical
Economic Research Center (STEAM) and Gulf Keystone. Todd Kozel will
participate in the Mapping the Future session led by the Minister
of Natural Resources of KRG, H.E Dr. Ashti Hawrami and the Minister
of Energy and Natural Resources of Turkey, H.E Taner Yildiz. The
Prime Minister of the Kurdistan Regional Government, H.E Nechirvan
Barzani, will also be in attendance. The conference will be held in
Erbil on 30 May 2013.
Operational Update
Shaikan Field Development Plan
On 27 January 2013, Gulf Keystone, as operator, submitted a
Field Development Plan ("FDP") to the Shaikan Block Management
Committee. The Company is in constructive talks with the
appropriate regulatory authorities concerning their feedback on the
proposed way forward for the development of the Shaikan field,
which was declared a major commercial discovery in August 2012.
Shaikan PF-1 and PF-2
Following approval of the Shaikan FDP, Gulf Keystone will be
ready to step up its production operations through the
commissioning of two new production facilities at Shaikan ("PF-1
and PF-2"). The Company is planning to complete mechanical assembly
and connection works on the Shaikan PF-1 by the end of Q2 2013,
which will be followed by a period of start-up, commissioning and
ramping-up of production to a target of 20,000 bopd, increasing to
a capacity of 40,000 bopd in the coming months following the
commissioning of the Shaikan PF-2.
Delivery of equipment modules for the Shaikan PF-2 is
progressing and the construction of the Shaikan PF-2 site has been
completed. The assembly works will commence following the
completion of the Shaikan PF-1.
Shaikan-7 and Shaikan-10
The Company plans to spud Shaikan-7, the first deep exploration
well, targeting the mid to lower Triassic and, potentially, Permian
horizons, and Shaikan-10, the first development well, in May and
June 2013 respectively.
Akri-Bijeel Block
Extensive exploration and appraisal programme is ongoing on the
Akri-Bijeel block. The Bakrman-1 exploration well testing programme
is nearing completion and the Bijell-2 and Bijell-7 wells are being
drilled to appraise further the Bijell discovery. The construction
of an Extended Well Test facility for the Bijell discovery is
nearing completion.
Ber Bahr Block
Re-testing of the Ber Bahr-1 exploration well continues.
Sheikh Adi Appraisal Programme
After making a Jurassic discovery with the Sheikh Adi-2
exploration well in November 2012, the Company and the Kurdistan
Regional Government, its partner in the block unanimously agreed to
move to an appraisal programme to appraise Jurassic targets and
evaluate the Triassic upside at the 3,500 metres projected depth
with the Sheikh Adi-3 appraisal well. Furthermore, we plan to
target two additional exploration leads, comprising potential
extensions of the Atrush and Swara Tika discoveries, following
acquisition of 70 km of additional 2D seismic data. The Company is
enthusiastic about the forthcoming appraisal and additional
exploration work as it is the Company's belief that the Shaikan
field shows signs of a significant extension into the Sheikh Adi
block.
Full Year Results, Investor Day & AGM
The Company will announce full year results for the period ended
31 December 2012 on Thursday, 20 June 2013. The Company will hold
an Investor Day on Thursday, 4 July 2013 in London. The Company's
Annual General Meeting is to be held on Thursday, 25 July 2013 in
Bermuda.
Enquiries:
Gulf Keystone Petroleum: +44 (0) 20 7514 1400
Todd Kozel, Executive Chairman and Chief Executive
Officer
Ewen Ainsworth, Finance Director
Anastasia Vvedenskaya, Investor
Relations
Strand Hanson Limited +44 (0) 20 7409 3494
Simon Raggett / Rory Murphy /
James Harris
Mirabaud Securities LLP +44 (0) 20 7878 3362
Peter Krens
Pelham Bell Pottinger +44 (0) 20 7861 3232
Mark Antelme / Henry Lerwill
John Gerstenlauer, the Company's Chief Operating Officer, who
has 35 years of relevant experience within the sector and meets the
criteria of a qualified person under the AIM note for mining, oil
and gas companies, has reviewed and approved the technical
information contained in this announcement. Mr. Gerstenlauer is a
member of the Society of Petroleum Engineers.
or visit: www.gulfkeystone.com
Notes to Editors:
-- Gulf Keystone Petroleum Ltd. (AIM: GKP) is an independent oil
and gas exploration and production company focused on exploration
in the Kurdistan Region of Iraq.
-- The Company's shares have traded on the AIM market of the
London Stock Exchange since listing on 8 September 2004.
-- Gulf Keystone Petroleum Limited is registered in Hamilton,
Bermuda with further offices in Erbil, Kurdistan (Iraq), Algiers,
Algeria and London, UK.
-- Gulf Keystone Petroleum International (GKPI) holds Production
Sharing Contracts for fourexploration blocks in Kurdistan,
including the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel
blocks.
-- GKPI is the Operator of the Shaikan Block, which is a major
commercial discovery, with a working interest of 75 per cent and is
partnered with Kalegran Ltd. (a 100 per cent subsidiary of MOL
Hungarian Oil and Gas Plc.) and Texas Keystone Inc., which have
working interests of 20 per cent and 5 per cent respectively. Texas
Keystone Inc. holds its interest in trust for Gulf Keystone,
pending transfer of its interest to the Company.
Not for release, publication or distribution, directly or
indirectly, in or into the United States or jurisdictions other
than the United Kingdom and Bermuda where to do so would constitute
a contravention of the relevant laws of such jurisdiction. This
announcement (and the information contained herein) does not
contain or constitute an offer of securities for sale, or
solicitation of an offer to purchase securities, in the United
States or jurisdictions other than the United Kingdom and Bermuda
where to do so would constitute a contravention of the relevant
laws of such jurisdiction. The securities referred to herein have
not been and will not be registered under the US Securities Act of
1933, as amended (the "Securities Act"), and may not be offered or
sold in the United States unless the securities are registered
under the Securities Act, or an exemption from the registration
requirements of the Securities Act is available. No public offering
of the securities will be made in the United States.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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