Gulf Keystone (LSE:GKP)

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Gulf Keystone keeps quiet on Kurdistan development

Gulf Keystone keeps quiet on Kurdistan development
Gulf Keystone Petroleum (GKP) has announced that the Akri-Bijeel Block in the Kurdistan Region of Iraq, where it has a 20% working interest, has been declared commercial.

The block, which is operated by Kalegran, a 100% subsidiary of MOL Hungarian Oil and Gas, will see its work programme accelerated with the employment of additional rigs and plans to submit a field development plan (FDP) by the end of next year.

MOL updated the market on Thursday 31 October, with Gulf Keystone posting its announcement on Friday morning.

The commercial viability of the block was based on discoveries made by the Bijell-1 well in Jurassic horizons and the Bakrman-1 well in Triassic horizon.

Results of the Bakrman-1 exploration well were subject to extended well testing from 25 July until 26 August, which confirmed long-term production sustainability.

Current tests gave maximum flow rates of 3,192 barrels of oil per day of light intensity oil.

Kalegran plans to drill two appraisal wells at the beginning of 2014 and is targeting early oil production in the first half of 2015.

Meanwhile, Kalegran and its partners are continuing the appraisal work programme on the Bijell Field, although the extended well test, facility construction and commissioning has been successfully completed.

The Bijell Field facility is capable of handling up to 10,000 barrels of oil per day.

Alexander Dodds, executive vice president for upstream at MOL, said: "MOL is pleased to announce commerciality on the Akri-Bijeel block after recent successful long-term tests in our Bakrman discovery.

"Meanwhile, in the Bijell area we identified the potential to accelerate the work programme and increase the number of rigs in order to finalise the appraisal activity as soon as possible."

Investor view

Gulf Keystone Petroleum did not comment on the update, which frustrated some users on Interactive Investor's discussion board.

'Mixed bag' said: "Couldn't one of the directors have tagged on some words of wisdom?", while 'ArianParod' said incredulously: "And GKP had no comment!"

This article is delivered as part of Interactive Investor's Interface service, which brings companies enhanced exposure to Interactive Investor's audience of active retail investors. Companies pay a fee to be included in this service. For more on Interface click here.

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