Gulf Keystone ready for 'exciting year' after oil discovery in Iraq

Gulf Keystone Petroleum, the AIM-listed oil and gas group focused in Iraq, said that oil has been found at its part-owned Bakrman-1 exploration well.

Gulf Keystone Petroleum, the AIM-listed oil and gas group focused in Iraq, said that oil has been found at its part-owned Bakrman-1 exploration well.

Operator MOL Hungarian Oil and Gas announced that the well had made a new Triassic discovery, the second discovery on the Akri-Bijell Block, in which Gulf Keystone owns a 20% stake. It flowed at a rate of 2,616 barrels of light oil per day and a gas rate of 5.86m standard cubic feet per day.

Bakrman-1, which spudded in May 2012, is the first well to target the Bakrman structure on the block. Well testing is ongoing and expected to be completed by April.

"The second discovery on the Akri-Bijeel block marks the beginning of an exciting year for Gulf Keystone. We look forward to joining the ranks of key producers in the Kurdistan Region of Iraq in 2013," said Chief Operating Officer John Gerstenlauer.

Elsewhere on the block, the company said it was forced to abandon the Bijell-3 well after it didn't find a commercial inflow of hydrocarbons. However, the appraisal programme of the Bijell discovery continues with a number of other wells already in place.

Meanwhile, the company said that it is nearing the completion of its production facility on the Shaikan Block, and despite the cold and snowy weather conditions and delays in the shipping schedule, it would be up and running by next month.

Gerstenlauer said: "In addition to drilling a number of development wells on Shaikan, as well as our first deep exploration well, we anticipate further positive results of the extensive exploration, appraisal and early production programme on the Akri-Bijeel block."

Shares were up 1.68% at 202.35p in early trading on Wednesday.

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021