Oil & Gas Corporate News
Gulf Keystone Petroleum (LON:GKP) (BUY, £2.00) (GKP, 73.5p, ? (1.34%)) reports an update on the Bijeel-1 exploration well operated by MOL subsidiary, Kalegran Limited. The Bijeel-1 exploration well has encountered more than 400m of potential hydrocarbon bearing interval between 3646m and TD at 4383m. Kalegran evaluated and tested the top 30m of the zone at rates up to 3200bopd, as reported on March 9, 2010, however mechanical problems were encountered when testing and evaluating the remaining 370m. This has necessitated a sidetrack and re-drill of the lower portion of the well to fully evaluate and test the remaining intervals, which is expected to take up to eight weeks to complete. Consequently, drilling of the Shaikan-2 appraisal/exploration well, which is to use the Weatherford 842 rig currently on location at the Bijeel-1 well, will be delayed. The Shaikan-2 well is now expected to spud during the third quarter of 2010. The Bijeel-1 exploration well has provided water pressure data which, when taken with data from other wells in the area, has favourable implications for the Shaikan structure. The data would appear to support the concept of a regional aquifer which underlies the Shaikan structure and that the hydrocarbon-water contacts in each reservoir are substantially deeper than the lowest known hydrocarbon depths, as determined from log data.
Comment: Although the delay is not welcome it was already a fact and todays announcement provides a much needed clarification on the cause as well as quantifies it. In the great scheme of things it is not a major issue, drilling operations are seldom carried out like clockwork and this doesnt reflect badly on either MOL or Gulf Keystone. The interpretation of water pressure data, if confirmed, is excellent news for ultimate recoverable resources from Gulf Keystone's acreage.
Petroneft Resources (LON:PTR) (PTR, 38.5p, ? (1.28%)) announced that pipeline pressure testing at its operations on Licences 61 and 67, Tomsk Oblast, has been completed on schedule. The 60km pipeline was successfully tested to design pressure which is twice the normal operating pressure. The water used in the testing procedure will now be removed from the pipeline in preparation for the commencement of oil production. The company also announced that drilling of the fourth of nine production wells at the Lineynoye oil field has now been completed ahead of schedule. Preliminary log and survey data indicate…
