GKP Shares Up 10% on Shaikan-4 Well Test

Shaikan-4 Well Test Achieves 24,000 bpd

Gulf Keystone Petroleum (GKP) has completed the testing programme for the Shaikan-4 deep appraisal well, drilled 6 km to the west of the Shaikan-1 discovery well in the Kurdistan Region of Iraq.

The extensive well testing programme commenced in December 2011 after Shaikan-4 had drilled to a total depth ("TD") of 3,387 metres. Preliminary results of the Shaikan-4 drilling operations were a significant contribution to the new data used by Dynamic Global Advisors (DGA), independent Houston-based exploration consultants, to calculate an addition of over 3 billion barrels of gross oil-in-place volumes for the Shaikan discovery announced in November 2011.

In the course of the Shaikan-4 well testing programme the Company has conducted seven well tests in all target formations in the Triassic (Kurre Chine-A, Kurre Chine-B and Kurre Chine-C), Jurassic (Butmah and Lower and Upper Sargelu) and Cretaceous (Chia Gara). Additionally, the Company has performed an acidization and retest of the Sargelu formation interval as part of the well completion process.

As a result of the Shaikan-4 well testing programme, the Company has achieved total maximum aggregate flow rates of 24,000 barrels of oil per day ("bopd").

Following the Company's decision not to test portions of the well that appeared to be high quality oil reservoir on the electric logs, and where proven commercial flow rates had been achieved by testing previous wells on the Shaikan block, most of the tests have been conducted in zones which looked marginal on the well logs.

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