Business
Development Plan Approved
Development Plan Approved.
About this update from Gulf Keystone Petroleum Limited
[{"type":"text","content":"\n Gulf Keystone Petroleum Ld\n10 January 2008\n\n\n\n GULF KEYSTONE PETROLEUM LIMITED\n\n\n\n (\"GULF KEYSTONE\" OR THE \"COMPANY\")\n\n\n\n ALNAFT APPROVES GKN & GKS DEVELOPMENT PLAN\n\n\n\n\n\nSONATRACH (Algeria's national oil company) and partner Gulf Keystone Petroleum\nLtd (AIM: GKP) are pleased to announce the approval by ALNAFT (the Hydrocarbon\nNational Agency), of the proposed Development Plan for the GKN and GKS oil\nfields (60% Working Interest, 30% Net Revenue Entitlement) located in North\nAlgeria, South East Constantine basin, Block 126a.\n\n\n\nOn 25 June 2007, prior to receiving ALNAFT'S approval, the SONATRACH / Gulf\nKeystone joint Management Committee for the 126a block unanimously approved the\ndeclaration of commerciality for the GKN and GKS fields.\n\n\n\nSONATRACH and Gulf Keystone will work together to manage this field development.\n The field Development Plan envisages producing oil from the GKN-1 well\n(currently producing at approximately 1,200 bopd gross) and bringing the GKS-2\nwell on stream as soon as practicable.\n\n\n\nAs part of the Development Plan, SONATRACH and Gulf Keystone intend to build a\npipeline to connect GKS-2 to the existing evacuation pipeline so that this well\ncan begin production. The GKS-2 well produced at a rate equivalent to 4,586\nbopd and 4.61 mmcfgd when it was tested in 2005. The two fields will then be\ndeveloped in a staged process through the acquisition of a 3-D seismic survey\nand a development drilling programme jointly conducted by SONATRACH and Gulf\nKeystone.\n\n\n\nThe plateau production rate is expected to be c3,000 gross bopd which is\npresently constrained by available facilities.\n\n\n\nThe GKN-GKS oil field is presently the only partnership project in development\nphase in northern Algeria.\n\n\n\nChristopher Garrett, the Company's Vice President of Operations, who has over 29\nyears relevant experience within the sector and who has been involved with this\nproject for over 4 years and meets the criteria of a qualified person under the\nAIM guidance note for mining, oil and gas companies, has reviewed and approved\nthe technical information contained in this announcement.\n\n\n\nTodd Kozel, Executive Chairman and Chief Executive of Gulf Keystone said:\n\n\n\n\"The Declaration of Commerciality by SONATRACH in June of last year and today's\nannouncement...