Gulf Keystone Petroleum, an oil company focused on the Kurdistan region of Iraq, has revealed that the much anticipated Ber Bahr 1 exploration well in Kurdistan has encountered a 300 metre oil column, although the commercial potential of the well is as yet unknown.
The well's operator, Genel, admitted that two drill stem tests have failed to flow and produced inconclusive results, but with evidence of perforations plugged with heavy oil.
The well has been temporarily suspended whilst a work over rig is brought in to conduct an extended well test.
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Genel has also stated that further evaluation of the significant oil column will be required to determine whether the discovery is commercially viable. The company's resource estimate for the Ber Bahr block, which is 40% owned by Gulf Keystone, is 1.5bn barrels of oil equivalent-initially-in-place.
Gulf Keystone's share price remained buoyant despite the news, gaining 1.67% to 198.25p by 12:56.
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