Shares in Gulf Keystone Petroleum (LSE: GKP) jumped 6.5% on Monday morning following an update on theie current exploration and testing activities in the Kurdistan region of Iraq:
The well is currently in the Cretaceous Garagu Formation at 1,229 metres, measured depth. Oil shows have been observed both while drilling and also in a core. The wellbore is being conditioned prior to logging the well. Subsequently, the well will be drilled to TD and a 7-inch casing string will be run, finally, the pay interval will be tested.
Extended Well Test Facilities at Shaikan-1
A total of 10 truck loads of crude from the Shaikan-1 discovery well have now been sent to different refineries and oil processing plants in Kurdistan. The results of refined product yields from these product test runs continue to be analysed, after which a domestic price will be set for the Shaikan, Sargelu crude oil.
The well is currently drilling in the Cretaceous at 899 metres, measured depth. Oil shows have been encountered in a core taken in the top Cretaceous. In addition, oil shows have been seen in the surface returns whenever there have been full or even partial returns. Log evaluation also indicates high hydrocarbon saturations over a minimum gross interval of 50 metres in the first Cretaceous zone encountered. However, hole stability issues (swelling, unstable shales) preclude the possibility of a production test at this time, doing so would involve running an unplanned casing string thus jeopardising our ability to reach the primary Jurassic and Triassic targets. Plans are to drill ahead to the primary targets and leave the Cretaceous intervals for later testing. Read more ...