Gulf Keystone Petroleum (GKP), the northern Iraq-focused oil explorer, has risen sharply this morning after updating the market on its drilling programme.
GKP has exploration rights for the Shaikan block in the Kurdistan regiion of Iraq. This block has independently audited volumes of between 8bn barrels to 13.4bn barrels of oil.
The Shaikan 4 appraisal well, which has already been successfully tested will be completed "as a producer" and tied to the Shaikan-1 and Shaikan-3 extended well test facility.
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Both the Shaikan-5 and -6 wells appear to have found oil, with more drilling to take place.
The company also says that as part of its extended well test, a total of 442,592 barrels of oil have been produced, with the volumes rising sharply in March and April.
John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented: "Our operations are progressing across the four blocks in the Kurdistan Region of Iraq. In addition to the outstanding 24,000 bopd results achieved with the Shaikan-4 appraisal well, Shaikan-6 has cored oil 150 metres below what we previously assumed to be Jurassic oil/water contact level for Shaikan.
"Both Shaikan-5 and Shaikan-6 continue to appraise this massive structure down the flanks and we plan to test and evaluate its deeper oil potential. Stable output from the Shaikan extended well test has now surpassed our initial target of 5,000 bopd
"A long-anticipated second exploration well on the Sheikh Adi block will spud in June, when results of the Ber Bahr-1 testing programme are also expected."
GKP's share price had risen 3.8% by 10:17. Since the beginning of the year the stock has gained 23.7% in value.
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