Gulf Keystone Petroleum Drilling New Shaikan Well

LONDON -- Gulf Keystone  (LSE: GKP  ) saw its shares dip slightly today, down 2.5 pence to 149.5 pence, despite revealing plans to drill a new exploration well, to be called Shaikan-7.

The new well, which spudded at the weekend, is the first deep exploration well to be drilled at the company's huge Shaikan discovery in Kurdistan, and is one kilometer east of the original discovery well.

Gulf Keystone said the well will "evaluate the potential for significant quantities of light oil and identify commerciality of the deeper Triassic reservoir. The well is then expected to penetrate the Permian, the deepest undrilled horizon to date on the Shaikan structure."

The total depth of the well is expected to be 4,500 meters, and it could take about nine months to complete.

John Gerstenlauer, chief operating officer of Gulf Keystone, said "with Shaikan-7, we hope to confirm our expectations of major reservoirs beneath the deepest horizon drilled to date, and add to what is already recognized as one of the world's largest onshore conventional oil & gas developments".

2013 is certainly turning out to be busy year for Gulf Keystone, at the drillbit, in the boardroom and even in the courts. The company is currently searching for a new non-executive Chairman, and is also looking to move from AIM to the Official List of the London Stock Exchange.

Gulf Keystone is also embroiled in a court battle with Excalibur Ventures, concerning the ownership of a sizable stake in its Kurdistan licenses. The judge in the case is expected to announce his verdict anytime now.

On the operational front, Gulf Keystone is targeting production of 40,000 barrels a day by the end of this year, and then ramping up to a long-term target of 400,000 barrels, although much of the detail behind its plans is yet to be announced.

Tomorrow, June 20, is also a key day for the company, as it sees the release of its long-awaited full-year results for 2012.

Investing in oil and gas shares can be hugely profitable, but there are many pitfalls for the unwary. Make sure you read The Motley Fool's report on "How to Unearth Great Oil and Gas Shares" before investing your money.

Get your free copy of this report now.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2498039, ~/Articles/ArticleHandler.aspx, 9/19/2014 8:16:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement