Gulf Keystone Update on Bajeel-1

Bijeel-1 Discovery Well Update

Gulf Keystone notes the announcement made today by MOL Hungarian Oil & Gas Plc regarding the successful end of testing of the Bijeel-1 discovery well, in which Gulf Keystone holds a 20% Working Interest.

Highlights:

• The cased hole test, performed at a depth of 3,804 - 3,967 meters in the Jurassic formations, produced 2,700 barrels per day (bbl/d) of 12-13 °API oil through a 40/64 inch choke.
• Previously, the Bijeel-1 well produced 3,200 bbl/d of 18 °API oil and 933,000 standard cubic feet per day (scf/d) of gas, (150 barrels of oil equivalent per day (boe/d)), through a 48/64 inch choke from 3,646 - 3,831 meters in the Jurassic formations.
• A joint cased hole test was also performed for the above two intervals (3,729 - 3,967 meters) with a result of 3,743 bbl/d of 13° API oil and 618,826 scf/d (99 boe/d) gas through a 48/64 inch choke.
• Following the successful result, Kalegran Ltd, MOL's fully owned subsidiary, has notified the Ministry of Natural Resources of the Kurdistan Regional Government of Iraq confirming the presumed existence of the discovery.
• The planning of the formation's appraisal programme is now underway.
• The results support Gulf keystone's belief that the Bijeel-1 well is the possible southern flank of the potentially significant Bekhme structure.
• Ongoing exploration of the Akri-Bijeel block, including the Bekhme structure, will continue in due course.
• The Weatherford 842 drilling rig will now be released to the Shaikan-2 location and begin drilling the first deep appraisal well on the Shaikan structure.

Click here to see details of the MOL announcement.

Commenting on today's announcements, John Gerstenlauer, Chief Operating Officer said:

"Today's announcement by MOL brings the testing of the Bijeel-1 well to a successful conclusion and highlights the clear potential of the Akri Bijeel block, in which Gulf Keystone holds a 20% stake.  In addition to this further positive exploration development, we are pleased that the Weatherford 842 drilling rig will now be able to be moved to the nearby Shaikan-2 location, as part of the ongoing Shaikan appraisal programme."