Gulf Keystone Petroleum spudded the Shaikan-1 exploration well, Shaikan block, the Kurdistan region of northern Iraq with a planned TD, pending actual drilling results, of 3000 to 3500 metres. The range of TD depths reflects the under explored nature of the area and the lack of nearby correlation wells.

Currently the well is drilling 17-1/2" hole at about 1100 metres towards the planned intermediate casing point at 1350 metres. Oil shows have increased significantly as the larger hole approaches the deeper portions of the pilot hole. After setting the 13-3/8" casing at 1350 metres, GKP plans to log the remaining portion of the open hole down to 1510 metres. It is this lower portion of open hole that has shown indications of porosity and from which we believe the oil inflow originates. Pending log results, a limited flow test may be warranted.

After evaluation of this unexpected shallow zone, the well will be drilled to the next casing point as planned. The primary zones of interest for this well are still below the depth of current activities. Plans are to reach the final TD of 3000 to 3500 metres, pending actual well results and any future testing, during September.

The Shaikan Block is situated near the city of Dihok, approximately 85 kilometres North-West of Erbil and covers an area of 283 square kilometres. The partners in the Shaikan block are Gulf Keystone Petroleum International Limited (75% working interest and operator), Texas Keystone (5%) and MOL (20%).

Todd Kozel, Executive Chairman of Gulf Keystone, said, "Although we are at an early stage in the drilling of this well, we are encouraged by these shallow zone live oil shows and by the good progress our drilling crew is making despite some difficult geological conditions. Subject to what we encounter in the primary zones, we expect Shaikan-1 to reach target depth in line with our planned schedule. "

Tags: Gulf Keystone Petroleum