Gulf Keystone reported that the Sheikh Adi-2 exploration well spudded on the Sheikh Adi block in the Kurdistan Region of Iraq. The Sheikh Adi block is located immediately to the west of the Company's Shaikan block, which is a major discovery.

Sheikh Adi-2, the second exploration well on the block, is being drilled .9 miles (1.45 kilometers) to the north of the Sheikh Adi-1 exploration well, which was drilled to a total depth (TD) of 12,467 feet (3,800 meters) in August 2011. Based on the Sheikh Adi-1 well log results from the Cretaceous, Jurassic and the upper Triassic formations, gross oil-in-place resources of 1 billion to 3 billion barrels (P90 to P10 estimates) with a mean estimate of 1.9 billion barrels were assigned to the western part of the Sheikh Adi field by Dynamic Global Advisors, the independent Houston-based exploration consultants.

Tags: Gulf Keystone Petroleum