Shares in London-listed Gulf Keystone closed 6.4% up in yesterday’s trading after the company announced a significant reserves hike at its prize Shaikan field in the Kurdish region of Iraq.
In a statement released yesterday, the company boosted its audited P90 reserves estimate from 4.9 billion barrels to 8 billion barrels. P10 estimated reserves were increased from 10.8 billion barrels to 13.4 billion barrels, with a mean estimate of 10.5 billion barrels.
Gulf Keystone holds a 75% interest in the Shaikan block under a production sharing contract signed with the Kurdish Regional Government in November 2007.
The reserves hike, confirmed by Dynamic Global Advisors, an independent exploration and production advisory firm, came after analysis of 3D seismic data, preliminary results from the Shaikan 4 appraisal well, the extension of the Shaikan 1 and 3 well test production, and a new Triassic discovery at Shaikan 2 acquired since the last reserves update in April.
In a company statement, John Gerstenlauer, Gulf Keystone’s COO, said the company’s board are “delighted to validate our world-class discovery at Chaikan.”
“This assessment is far from being concluded as we have just spudded Chaikan 5 and prepare to drill Shaikan 6 in early 2012,” he added. The company is targeting the deeper Permian formation with Shaikan 7.
The company is also continuing with its field development plan.
