Oil & Gas Corporate News
Crude Oil (BUY, £0.90) (COP, 32p, ? 1.16%) announced an update regarding the Geyad-3 appraisal/development well together with details on the future development of the NW Gemsa Concession. Geyad-3, located to the south-east of the Geyad-1X ST well in the Geyad Development Lease, was drilled to 5,635 ft MD in the Upper Rudeis. The main objective for this well was to appraise and bring into production the oil bearing Shagar and Rahmi sandstones of the Kareem Formation. The Shagar sands were encountered from 5,333- 5,347 ft MD with 14 ft of net oil pay. The interval was tested at a sustained rate of 1,316 bopd and 1.26 MMscf/d of gas on a 24/64" choke and the well will be completed for production. The underlying Rahmi sands were encountered but found to be of poor reservoir quality and were not tested. A secondary objective of the Belayim sands in Geyad-3 well was also encountered with 5 ft of calculated net pay, but it was decided not to test this interval at the present time. The next well proposed for the Geyad field is a westerly peripheral injector to be drilled later in 2011.
Gulf Keystone Petroleum (LON:GKP) (BUY, £2.75) (GKP, 160p, ? 1.27%) provided an update on its activities in the Kurdistan Region of Iraq. Further to the Company's announcement on 22 March 2011, the Shaikan-2 deep appraisal well has now drilled to a depth of 2,655 m. The well is now in the top most section of the Triassic age formations and the Company is running casing. Further to the announced testing of the Sargelu/Alan section, which achieved the stabilised flow rate of 8,064 bopd, logs and cores have now been obtained in the Mus and Butmah Jurassic sections. Four cores totalling almost 30 meters have been recovered from the Mus formation, 23 m of which had excellent oil shows. An open hole test resulted in a significant flow, although a reliable oil measurement could not be obtained due to technical limitations of the down hole tools. Five cores totalling almost 47 m have also been recovered from the Butmah formation, 26 m of which had excellent oil shows. The forward plan is to drill through the Triassic section and possibly into the Permian. The Sheikh Adi-1 exploration well has reached the Triassic and has cut a…
