News

June 25, 2009

Shares In Gulf Keystone Gain As Shaikan-1 Finds Evidence Of Live Oil

Shares in AIM-quoted Gulf Keystone Petroleum gained 1.5 pence, up 13 per cent, to 13 pence on news that its Shaikan-1 well in Kurdistan has encountered live oil. The well, which is not yet even half way down to its target depth of between 3,000 and 3,500 metres, still has a long way to go but news that live oil has been encountered in the shallower section, above 1,000 metres, has reassured investors that at least this wildcat won’t be a complete duster.

“Although we are at an early stage in the drilling of this well, we are encouraged by these shallow zone live oil shows,” said Gulf Keystone’s executive chairman Todd Kozel. His company has a 75 per cent stake in this high impact project alongside Texas Keystone (5 per cent) and Hungarian firm MOL (20 per cent). 

Gulf Keystone is hoping the well will prove to be a company-maker.  It is certainly in the right geological neighbourhood: the 283 sq km Shaikan Block appears to lie on a...