Gulf Keystone Updates on Bijeel-1 Well

Gulf Keystone reported an update on the Bijeel-1 exploration well operated by MOL subsidiary, Kalegran Limited. 

The Bijeel-1 exploration well has encountered more than 400 meters of potential hydrocarbon bearing interval between 3646m and TD at 4383m. Kalegran evaluated and tested the top 30 meters of the zone at rates up to 3200 bopd, as reported on March 9, 2010, however mechanical problems were encountered when testing and evaluating the remaining 370 meters. This has necessitated a sidetrack and re-drill of the lower portion of the well to fully evaluate and test the remaining intervals, which is expected to take up to eight weeks to complete. 

Consequently, drilling of the Shaikan-2 appraisal/exploration well, which is to use the Weatherford 842 rig currently on location at the Bijeel-1 well, will be delayed. The Shaikan-2 well is now expected to spud during the third quarter of 2010. 

The Bijeel-1 exploration well has provided water pressure data which, when taken with data from other wells in the area, has favorable implications for the Shaikan structure. The data would appear to support the concept of a regional aquifer which underlies the Shaikan structure and that the hydrocarbon-water contacts in each reservoir are substantially deeper than the lowest known hydrocarbon depths, as determined from log data. 

Gulf Keystone CEO, Todd Kozel, said, "While the sidetrack of Bijeel-1 delays our drilling of the Shaikan-2 appraisal well, we are delighted by the first successful test of 3200 bopd and we look forward to the test results from the additional prospective intervals. The implications of the water pressure data from Bijeel-1 provides further support for movement toward the upside volume range for the Shaikan structure."


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