Gulf Keystone announce third-party audit of the company's Kurdistan reserves and contingent resources
Gulf Keystone today announces the release of the first third-party evaluation of the Company’s Reserves, Contingent Resources and Prospective Resources for the Shaikan field and its other petroleum interests in the Kurdistan Region of Iraq. The release of the Competent Persons Report (“CPR”) is a key component in the Company’s planned move from AIM to the standard segment of the Official List of the United Kingdom Listing Authority (the “Official List”) and is an important step in Gulf Keystone’s transition from an independent oil and gas exploration company to an exploration and production company.
The CPR was prepared by ERC Equipoise Limited and is available on gulfkeystone
Gulf Keystone is pleased to announce that the CPR identifies 12.5 billion barrels of gross oil in place and 1.2 billion barrels of oil of combined gross 2P and 2C recoverable reserves and resources across the Company’s portfolio in the Kurdistan Region of Iraq, comprising the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.
All 2P reserves and the majority of 2C contingent resources have been identified within the Company-operated assets of Shaikan and Sheikh Adi, and most of these reserves and resources, based on current information, are in the Jurassic formation. 299 million barrels of gross 2P oil reserves in the Jurassic formation of the Shaikan field have been assigned on the basis of the planned 26 development wells of the Shaikan FDP Phase 1, which is fewer than 25% of approximately 109 wells currently envisaged for the Shaikan full field development.
Todd Kozel, Gulf Keystone’s Chief Executive Officer commented:
“The release of this Competent Person’s Report marks a significant milestone in the evolution of Gulf Keystone. We commenced commercial production at the Shaikan field in July 2013 and now, with the release of our first audited, third-party estimate of our reserves and contingent resources, we have a baseline in place against which to measure future progress.
This report represents a conservative estimate based solely on reserves which are being targeted with 26 wells representing less than 25% of all wells currently envisaged for the Shaikan development. The CPR does not take into account undrilled and untested horizons and we see a clear route for unlocking the upside to these 2P and 2C numbers through drilling more wells and thus obtaining a better understanding of the oil water contact levels and the actual fracture porosity. Meanwhile, conversion from 2C to 2P will be driven by approval of the next phase of the Shaikan development.”