Gulf Keystone gains as Shaikan wells look set for oil production
OIL explorer Gulf Keystone yesterday offered yet more data suggesting that its Shaikan wells in the Iraqi region of Kurdistan could deliver commercially viable amounts of oil.
It said that its Shaikan-6 appraisal well had been drilled and that oil had been encountered at its deepest point to date. Meanwhile the Shaikan-5 site has also been found to have oil. The company’s shares rose by 4.7 per cent to 237.75p after the exploration update.
Chief operating officer John Gerstenlauer said: “In addition to the outstanding 24,000 bopd [barrels of oil per day] results achieved with the Shaikan-4 appraisal well, Shaikan-6 has cored oil 150 metres below what we previously assumed to be Jurassic oil/water contact level for Shaikan.
“Both Shaikan-5 and Shaikan-6 continue to appraise this massive structure down the flanks and we plan to test and evaluate its deeper oil potential.”
He added that an exploration well on the Sheikh Adi block will be drilled in June.