Search Results | '"Gulf Keystone"'

Gulf Keystone to Raise $250m Debt

Gulf Keystone to Raise $250m Debt

Gulf Keystone has announced that it has mandated Deutsche Bank and Pareto Securities to arrange a series of fixed income investor meetings in the US, Europe and Asia commencing 20 March 2014. A debt offering of up to US$250 million in accordance with Reg S/144A is expected to follow, subject to market conditions.

On 13 March 2014, Gulf Keystone released an Operational and Corporate Update and published the first third party audit of the Company’s reserves, contingent resources and prospective resources for its petroleum interests in the Kurdistan Region of Iraq comprising the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.

The Company continues to maintain current stable production and sales levels at an average of 10,000 barrels of oil per day (“bopd”) from the Company’s first Shaikan production facility (PF-1). In addition, Shaikan-4, the third production well, recently tied-in to PF-1, has been flowing at up to 6,000 bopd in the recent week.

The Company’s immediate focus remains on achieving its target of 40,000 bopd of production capacity from PF-1 and PF-2 in 2014, which will allow further expansion of export crude oil sales. The Company estimates that achieving this level of production capacity at Shaikan, as well as continuing planned expenditure at Sheikh Adi, Ber Bahr and Akri-Bijeel, will require capital expenditure of approximately US$210 million in 2014.

To complete this work programme, the Company expects to seek additional funding via a debt offering of up to US$250 million to enhance its existing cash resources, which totalled US$81.9 million as at 31 January 2014. Whilst there can be no certainty that a debt transaction will follow the Company’s investor meetings, any debt raised will support the completion of the Company’s move to 40,000 bopd of production capacity.

The Company expects to utilise cash generated from increasing oil sales, in addition to the funds remaining from the contemplated raising of up to US$250 million in debt financing, to initiate the next stage of the Shaikan project execution and increase production capacity from 40,000 bopd to 66,000 bopd by Q1 2016.

Posted in Banking & Finance, Oil & Gas2 Comments

Gulf Keystone Update

Gulf Keystone Update

Gulf Keystone Petroleum (GKP) has this morning provided an Operational and Corporate update, and released a third party audit of the Company’s reserves, contingent resources and prospective resources for its petroleum interests in the Kurdistan Region of Iraq.

Summary

The Company continues to maintain current stable production and sales levels of approximately 10,000 barrels of oil per day (“bopd”) from the Company’s first Shaikan production facility (“PF-1″) in the Kurdistan Region of Iraq, which is expected to increase in Q2 2014 as a result of the recently tied-in third production well, Shaikan-4, which is now flowing.

The second Shaikan production facility (“PF-2″) is being commissioned, with two wells (Shaikan-2 and Shaikan-5) already tied in and the first production from PF-2 expected in Q2 2014. The Company remains focused on achieving the target of 40,000 bopd of production capacity from PF-1 and PF-2 in 2014.

Since crude oil exports from the Shaikan field commenced in December 2013, in excess of 105,000 tonnes (690,000 barrels) of oil have been tendered and sold at international prices. The Company is expecting to receive payment, in line with the terms of the Shaikan Production Sharing Contract.

In order to move to the next stage of the Shaikan project execution, the Company is making progress in its discussions on the near term debt financing options.

Production and Development

Shaikan (75% working interest; Operator)

Stable production operations and sales from PF-1 continued in January, February and March 2014 at the level of approximately 10,000 bopd (gross). Total cumulative production from late 2010 to date from Shaikan has reached 2.1 million barrels.

Since crude oil exports from the Shaikan field commenced in December 2013, three cargoes totalling in excess of 105,000 tonnes (690,000 barrels) of oil have been delivered from PF-1. The fourth cargo of approximately 33,000 tonnes (215,000 barrels) of Shaikan crude is expected to be delivered later in March 2014.

Posted in Oil & Gas0 Comments

Gulf Keystone Starts Drilling at Shaikan-7

Gulf Keystone Starts Drilling at Shaikan-7

By John Lee.

Gulf Keystone has announced the commencement of the Company’s drilling campaign to explore deeper, yet untested horizons of the world class discovery at the Shaikan field, which the Company operates.

Shaikan-7, the first deep exploration well on the Shaikan block, is targeting the mid to lower Triassic and, potentially, Permian horizons, spudded late on Sunday 16 June 2013. The well is being drilled with the Weatherford Rig 319 (3000HP) close to the crest of the Shaikan structure, approximately 1 km east of the Shaikan-1 discovery well.

Shaikan-7 is being drilled to the lower Triassic to evaluate the potential for significant quantities of light oil and identify commerciality of the deeper Triassic reservoir. The well is then expected to penetrate the Permian, the deepest undrilled horizon to date on the Shaikan structure.

This vertical well is planned to reach a total depth below 4,500m in the Permian and the drilling is expected to take about 9 months.

Commenting on today’s announcement, John Gerstenlauer (pictured), Chief Operating Officer, said:

As we are about to commence implementation of our Field Development Plan for the Shaikan discovery and start Jurassic production from the newly constructed Shaikan production facility, the spudding of our first deep exploration well adds a new and exciting dimension to Gulf Keystone’s work programme in 2013.

“With Shaikan-7, we hope to confirm our expectations of major reservoirs beneath the deepest horizon drilled to date and add to what is already recognised as one of the world’s largest onshore conventional oil & gas developments.

(Source: GKP)

Posted in Oil & Gas0 Comments

Gulf Keystone Resumes Pumping in Kurdistan

Gulf Keystone Resumes Pumping in Kurdistan

By John Lee.

According to industry sources cited by reuters, Gulf Keystone has restarted production in Kurdistan after a gap of six months.

The company is now producing between 5,000 and 7,000 bpd for sale on the domestic market, and is developing its Shaikan field to raise output to around 40,000 bpd by the middle of next year.

GKP reportedly aims to produce as much as 150,000 bpd from Shaikan by 2015.

(Source: Reuters)

Posted in Oil & Gas0 Comments

Gulf Keystone Half-Year Report To June 2012

Gulf Keystone Half-Year Report To June 2012

Gulf Keystone, an independent oil and gas exploration and production company with operations in the Kurdistan Region of Iraq, today announces its results for the six months ended 30 June 2012.

HIGHLIGHTS

Operational – to 30 June 2012 and post period end

Shaikan (75% working interest; Operator) [Shaikan-2 is pictured.]

· 83% increase in gross oil-in-place numbers (PMean) for the Shaikan discovery with a new range of 12.4 billion (P90) to 15.0 billion (P10) barrels, with a mean value of 13.7 billion barrels, following independent evaluation by Dynamic Global Advisors (“DGA”) in July 2012
· Completion of the agreed five-well appraisal programme of the Shaikan field with the drilling of the Shaikan -4, -5 and -6 appraisal wells and testing of Shaikan -4 and -6
· Submission of the Declaration of Commercial Discovery for the Shaikan field with effect from
1 August 2012
· Spudding of Shaikan-8, the first post-appraisal well
· Ongoing work on the Shaikan Field Development Plan to be submitted within 180 days following the Declaration of Commercial Discovery
· Construction of two new early production facilities (PF -1 and -2, formerly known as EWT -1 and -2) is nearing completion, with the first unit due to become operational in January 2013 and the second by the end of the first quarter 2013
· Following completion of the preliminary design work, awaiting confirmation of the final route of the Shaikan export pipeline

Sheikh Adi (80% working interest; Operator)

· Sheikh Adi-2, the second exploration well on the block, spudded in May 2012 and has been drilled to a measured depth of 2,754 metres, with a plan to conduct a well testing programme across 7 target zones

Akri-Bijeel (20% working interest)

· Based on the Bekhme-1 exploration well’s log data, DGA calculated a range of 2.5 billion (P90) to 5.4 billion (P10) barrels of gross oil-in-place resources for the Aqra/Bekhme anticline
· Bijell-3 well, spudded in January 2012 to appraise the Bijell discovery of 2.4 billion (P50) barrels of gross oil-in-place, as calculated by the operator of the block. The well is currently drilling at a measured depth of 4,974 metres and, given good preliminary results of the logs and cores, will be followed by a well testing programme
· An early production facility for the Bijell discovery is being constructed to be installed by the end of 2012
· Bakrman-1 exploration well spudded in May 2012 and is currently approaching the planned 7 inch casing point at 3,637 metres and, given good preliminary results of the logs and cores, will be followed by a well testing programme
· Gulak-1 exploration well spudded in July 2012 and is currently drilling in the upper Jurassic below a measured depth of 1,600 metres

Ber Bahr (40% working interest)

· Ber Bahr-1, the first exploration well on the block, was drilled to a total depth (“TD”) of 3,930 metres and encountered a 300 metres oil column in the Jurassic. The well has been temporarily suspended while a work over rig is moved to the location to conduct a further well test with results expected in the fourth quarter 2012

Financial – as at 30 June 2012

· Loss after tax: $31.4 million (1H11: $10.3 million)
· Loss per share: 3.68 cents (1H11: 1.37 cents)
· Cash, cash equivalents and liquid investments of $136.9 million as at 30 June 2012 (30 June 2011: $137.6 million; 31 December 2011: $237.6 million)

Corporate development

· The Nominations Committee of the Board was formed in February 2012 (Lord Guthrie, Chairman) and the Remuneration and Appointments Committee was renamed the Remuneration Committee (Mehdi Varzi, Chairman)
· Lord Truscott retired by rotation from his position as the Company’s Non-Executive Director
· Mr Adnan Samarrai retired from his position as the Company’s Country Manager moving to a senior position within the Ministry of Natural Resources of the Kurdistan Region of Iraq. Mr Umur Eminkahyagil, previously Development and Production Manager, has been appointed the Company’s Country Manager in the Kurdistan Region of Iraq

OUTLOOK

· Complete and submit the Shaikan Field Development Plan by the end of January 2013, select development concept, and move to the large-scale staged development in 2013 with the goal of achieving 150,000 bopd by 2015 and full plateau production thereafter
· Commission the two Shaikan early production facilities to increase production to 30,000 – 40,000 bopd by mid-2013
· Confirm the final route and make a decision on the construction of an export pipeline to connect Shaikan’s increasing production to international markets
· Explore undrilled horizons in the Shaikan block, with the Shaikan-7 well targeting the deeper Triassic and the Permian
· Continue aggressive exploration and appraisal of the Akri-Bijeel, Sheikh Adi and Ber Bahr blocks to prove up resource base
· Evaluate the ongoing process of the sale of the Company’s 20% interest in the Akri-Bijeel block, taking into consideration forthcoming results of the three wells currently being drilled and planned early production from the Bijell discovery
· Successfully remove the uncertainty caused by the claims asserted by Excalibur
· Move from AIM to the premium segment of the Official List of the London Stock Exchange as part of establishing the Company as one of the major independent exploration and production players listed on the London Stock Exchange

Todd F Kozel, Executive Chairman and CEO of Gulf Keystone, commented:

“As an independent explorer and operator in the Kurdistan Region of Iraq, we are proud of our outstanding operating record to date with 15 wells drilled or currently being drilled across the four blocks and ambitious targets consistently being met. Since mid-July, we have announced another major upgrade of Shaikan’s gross oil-in-place volumes following independent evaluation, completed a very successful appraisal programme of this world-class discovery and declared the field commercial. Gulf Keystone is now in transition from the exploration and appraisal phase to the large-scale staged development and production of the Shaikan field, which will be both challenging and exciting”.

Following the release of Gulf Keystone’s results for the six months ended 30 June 2012, the management will be hosting a meeting with equity analysts. For details contact Pelham Bell Pottinger.

Copies of the presentation will be available on the Company’s website at www.gulfkeystone.com from 10.00 a.m. (UK time).

Enquiries:

Gulf Keystone Petroleum:
+44 (0) 20 7514 1400
Todd Kozel, Executive Chairman and
Chief Executive Officer

Ewen Ainsworth, Finance Director

Strand Hanson Limited

+44 (0) 20 7409 3494
Simon Raggett / Rory Murphy / James Harris

Mirabaud Securities LLP

+44 (0) 20 7878 3362
Peter Krens

Pelham Bell Pottinger

+44 (0) 20 7861 3232
Mark Antelme / Henry Lerwill

or visit: www.gulfkeystone.com

John Gerstenlauer, the Company’s Chief Operating Officer, who has 33 years of relevant experience within the sector and meets the criteria of a qualified person under the AIM note for mining, oil and gas companies, has reviewed and approved the technical information contained in this announcement. Mr. Gerstenlauer is a member of the Society of Petroleum Engineers.

Posted in Oil & Gas0 Comments

Gulf Keystone, MOL, Spud Gulak-1 Exploration Well

Gulf Keystone, MOL, Spud Gulak-1 Exploration Well

By John Lee.

Gulf Keystone notes today’s announcement by MOL Hungarian Oil and Gas Plc., the operator regarding the spudding of the Gulak-1 exploration well on the Akri-Bijeel block in the Kurdistan Region of Iraq.

Gulak-1 is the fourth exploration well to be drilled on the Akri-Bijeel block and the first exploration well to target the Gulak anticline at the extreme eastern end of the block.

The well is being drilled 21.4 km to the east from the Bijell-1 discovery well and 28.3 km to the east-southeast from the Bijell-3 (Aqra-1) appraisal well, which is also drilling ahead. Gulak-1 will target prospective intervals in the Jurassic and Triassic drilling to a planned total depth of approximately 3,658 metres in the Triassic Kurra Chine formation.

Gulf Keystone has a 20 per cent working interest in the Akri-Bijeel block, operated by Kalegran Ltd., a 100 per cent subsidiary of MOL Hungarian Oil and Gas Plc., which holds 80 per cent working interest in the block.

The operator’s P50 resource estimate for the Bijell discovery is 2.4 billion barrels of oil-in-place, while the ongoing 2012/13 exploration and appraisal programme is targeting existing and identified hydrocarbon prospects in the Akri-Bijeel block.

John Gerstenlauer, Gulf Keystone’s Chief Operating Officer commented:

Gulak-1 is part of the operator’s extensive exploration and appraisal programme on the massive Akri-Bijeel block and the fourteenth well to be drilled across Gulf Keystone’s four blocks in the Kurdistan Region of Iraq. In addition to three wells currently drilling on the Akri-Bijeel block (Bijell-3, Bakrman-1 and Gulak-1), the programme also includes the drilling of three additional appraisal wells (Bijell-2, Qalati-1 and Qandagul-1).

Posted in Oil & Gas0 Comments

Gulf Keystone Rallies on Shaikan Oil-in-Place Upgrade

Gulf Keystone Rallies on Shaikan Oil-in-Place Upgrade

By John Lee.

Prior to today’s AGM, Gulf Keystone Petroleum has announced another major upgrade of the gross oil-in-place volumes for the Shaikan field in the Kurdistan Region of Iraq. Shares in GKP were up 6% in early trading in London.

The revised gross oil-in-place volumes for the Shaikan field, as calculated by Dynamic Global Advisors (DGA), independent, Houston-based exploration consultants, are a P90 value of 12.4 billion barrels to a P10 value of 15 billion barrels of oil-in-place, with a mean value of 13.7 billion barrels.

This very significant upgrade of the Shaikan resources estimates revises the previously announced range of 8.0 to 13.4 billion barrels of gross oil-in-place with a mean value of 10.5 billion barrels.

This upgrade is based on the data acquired since the last resource evaluation of the Shaikan discovery by DGA issued in November 2011 and is the fourth successive upward revision by DGA since the Shaikan discovery was announced in August 2009.

DGA’s conclusions are based on the new data acquired as a result of:

  • Daily geological reports, lithlogs, mud logs, well logs, well tests and core reports for the Shaikan-5 and -6 appraisal wells, including logs and cores samples obtained with the Shaikan-6 well indicating the deepest oil shows recorded by the Company to date.
  • Re-mapping and re-interpretation of the Shaikan reservoir horizons, including the Cretaceous Sarmord and Chia Gara formations, the Jurassic Sargelu, Alan, Mus and Butmah formations, the Triassic Baluti formation and the A, B and C members of the Kurra Chine formation, using the latest results of the 3D seismic data interpretation applied to the Shaikan-2, -4, -5 and -6 appraisal wells.
  • Net pay mapping for 10 reservoir intervals across the Shaikan anticline.
  • Updated data from the Shaikan-1 discovery well and Shaikan-2, -3, -4, -5 and -6 appraisal wells, which now includes volumes from the Cretaceous Chia Gara and the Triassic Baluti formations.

Posted in Oil & Gas0 Comments

Good News from Gulf Keystone’s Shaikan-5

Good News from Gulf Keystone’s Shaikan-5

Gulf Keystone provided an update on Tuesday on its ongoing appraisal programme at the Shaikan block in the Kurdistan Region of Iraq, which is a major discovery with independently audited gross oil-in-place volumes of between 8 billion barrels to 13.4 billion barrels calculated on the P90 to P10 basis, with a mean value of 10.5 billion barrels.

The Company has completed the drilling operations of the Shaikan-5 appraisal well, drilled 6 km to the north-east of the Shaikan-2 appraisal well. Shaikan-5 is the fourth well in the five-well appraisal programme, which has been drilled to evaluate the eastern culmination of the Shaikan structure. In May 2012, the well reached a total depth of 3,750 metres in the Kurre Chine Dolomite formation in the Triassic, which is the deepest horizon drilled by a Shaikan well to date.

Extensive logs and core acquired during the Shaikan-5 drilling operations have further enhanced the Company’s understanding of the reservoir and its fracture system. Results obtained in the Jurassic interval indicated a continuous oil column with approximately 237 metres of net pay, and porosities which are consistent with results obtained elsewhere in the field, most recently with the Shaikan-4 appraisal well.

Good hydrocarbon saturations were calculated throughout the Jurassic interval where fracture intensity appears to be comparable to or exceed those seen in other Shaikan wells. Oil shows were also recorded whilst drilling in the Triassic formation.

Work is underway to evaluate these preliminary results, and further testing of the prolific Jurassic reservoir and the Triassic interval is being considered once a work-over rig is available to move to the Shaikan-5 location. Following the completion of the well testing programme, Shaikan-5 will be completed as a Jurassic producer and tied to the Company’s second Extended Well Test facility (EWT-2), which is currently under construction.

John Gerstenlauer (pictured), Gulf Keystone’s Chief Operating Officer commented:

These solid preliminary results obtained with the Shaikan-5 appraisal well confirm the massively prolific nature of the Jurassic interval of the Shaikan structure. We look forward to completing the Shaikan appraisal programme, including further testing of the Jurassic and Triassic intervals with the Shaikan-5 and -6 wells, and incorporating all the new results into our independently audited gross oil-in-place estimates for the world-class Shaikan discovery. Deeper potential of the Triassic and Permian horizons will be tested with the Shaikan-7 exploration well in 2013.

Posted in Oil & Gas0 Comments

IBN Newsletter 'FREE Weekly Subscription'

wyg.com