Gulf Keystone (GKP) and Genel Energy announced a commercial oil discovery at the Ber Bahr-1 exploration well on the Ber Bahr block in the Kurdistan Region of Iraq.
Shares in GKP were up more than 5 percent on the day, with Genel Energy up 1.2 percent.
Genel Energy, as operator, made the following statement:
"The Ber Bahr 1 well original TD was 3933m in the upper Permian Chia Zairi formation. It encountered good oil shows over a c.300m interval in the Jurassic. Two drill stem tests over this interval failed to flow.
"The original well has now been successfully side tracked and in several tests, conducted over a period of days, achieved a sustainable flow rate of 2100 STB/day of 15 API oil from the Middle Jurassic age Sargelu Formation."
The operator has also stated their intention to begin a phased development of the field in the second half of this year.
Gulf Keystone and Genel Energy both hold a 40 per cent working interest in the Ber Bahr block. The Kurdistan Regional Government has a 20 per cent carried interest in the Ber Bahr Production Sharing Contract.
John Gerstenlauer, Gulf Keystone's Chief Operating Officer, commented:
"This is another significant discovery and the fifth across the four blocks the Company has an interest in. It comes during an exciting year for the Company as we move towards becoming a significant producer in the region."
Dr John Hurst (pictured), head of Exploration of Genel Energy, said:
"The Ber Bahr well adds a further commercial oil discovery to Genel's already significant KRI resource base. We plan to begin a phased development of the field in the second half of this year."
(Sources: Gulf Keystone, Genel Energy, Yahoo!)