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RNS Number : 8346A
Gulf Keystone Petroleum Ltd.
01 October 2015
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1 October 2015
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone" or "the Company")
Competent Person's Report Update
Significant de-risking: Shaikan 2P Reserves more than double to
639 million barrels
Gulf Keystone today announces the release of an updated
independent third-party audit of the Company's Reserves, Contingent
Resources and Prospective Resources for its oil & gas interests
in the Kurdistan Region of Iraq, including the Shaikan and Sheikh
Adi fields operated by Gulf Keystone.
Today's updated Competent Person's Report ("CPR") was again
prepared by ERC Equipoise ("ERCE") and follows the first report
published in March 2014. The updated CPR is available on the
Company's website at
http://www.gulfkeystone.com/investor-centre/presentations-and-technical-reports.
The focus on the Shaikan field has evolved from oil-in-place to
recoverable reserves and the updated CPR highlights the enhanced
understanding of the field. With over 15 million barrels now
produced from the Jurassic, the substantial production and
reservoir data acquired over the last 18 months have given a much
improved understanding of the field's recovery mechanism. The
Company now has greater certainty in its ability to develop the
increased 2P Reserves - fewer wells and reduced capex per barrel
will feature in the updated Shaikan Field Development Plan
("FDP").
Shaikan
-- 1P Reserves have increased by 55% compared to the March 2014
1P estimate from 198 to 306 million barrels gross, which is greater
than the original 2P estimate
-- 2P Reserves increased by 114% from 299 to 639 million barrels
gross, significantly de-risking the field's commerciality
-- The field's recovery mechanism, now recognised as being by
solution gas rather than a water drive, results in greater
predictability of field performance, increased reserves per well
and lower capex per barrel
Sheikh Adi
-- Work on an FDP for the appraisal area is underway
-- FDP approval is expected to lead to a future
re-classification of 2C Resources (currently at 112 million barrels
gross) to 2P Reserves
-- A new prospect in the north-west of the block identified with
169 million barrels gross of Prospective Resources
CPR Methodology
ERCE has audited the reserves assessment in compliance with
PRMS/SPE reporting guidelines.
The table below represents the updated CPR's conclusions on
Shaikan Reserves, Contingent Resources and Technically Recoverable
Volumes(1) in comparison with the March 2014 CPR:
Net diluted
WI
1P+1C+ to GKP -
CPR (mmstb)(2) 1P % increase 1C 1P+1C TRV(1) TRV 1P(3)
March
2014 198 244 442 0 442 108
Sept 2015 306 55% 85 391 90 481 166
Net diluted
WI
2P+2C+ to GKP -
CPR (mmstb) 2P 2C 2P+2C TRV TRV(1) 2P
March
2014 299 702 1,001 1,001 163
Sept 2015 639 114% 239 878 142 1,020 348
Net diluted
WI
3P+3C+ to GKP -
CPR (mmstb) 3P 3C 3P+3C TRV TRV 3P
March
2014 389 1,626 2,015 0 2,015 212
Sept 2015 982 152% 862 1,844 232 2,076 534
Notes:
(1) Technically Recoverable Volumes ("TRV") are reserves
recognised in the production profile beyond the term of
the Production Sharing Contract. Work is ongoing to accelerate
these reserves to within the licence period
(2) mmstb: Million stock tank barrels
(3) WI: Working interest; GKP WI in Shaikan is 80%, inclusive
of Texas Keystone's 5% (undiluted) holding, and is subject
to third party and KRG back-in rights; GKP net diluted WI
in Shaikan is 54.4%, inclusive of Texas Keystone's 5% (diluted)
holding
Source: September 2015 ERC Equipoise CPR
Commenting on the publication of the updated CPR, Jón Ferrier,
CEO, said:
"Today's announcement is a further independent endorsement of
the calibre of Shaikan as a world-class field. With cumulative
production to date of over 15 million barrels, the Company benefits
from a vastly increased dataset and a far greater understanding of
the reservoir."
"Our technical confidence has markedly improved. In what was
already a low production cost operation in the Kurdistan Region,
the Company is working on an updated FDP to develop the increased
2P Reserves with fewer wells, lower capex per barrel and greater
reserves per well."
A live webcast of the presentation to analysts will be available
at 11am (BST) today on the Company's website
www.gulfkeystone.com
Enquiries:
Gulf Keystone Petroleum: +44 (0) 20 7514 1400
Jón Ferrier, CEO
Sami Zouari, CFO
Anastasia Vvedenskaya, Head of Investor
Relations +44 (0) 20 7514 1411
Celicourt Communications: +44(0) 20 7520 9266
Mark Antelme
Jimmy Lea
or visit: www.gulfkeystone.com
Notes to Editors:
-- Gulf Keystone Petroleum Ltd. (LSE: GKP) is an independent oil
and gas exploration and production company with operations in the
Kurdistan Region of Iraq.
-- Gulf Keystone Petroleum International (GKPI) holds Production
Sharing Contracts for four exploration blocks in Kurdistan, the
Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.
-- GKPI is the operator of the Shaikan block, which is a major
commercial discovery, with a working interest of 75% and is
partnered with MOL Kalegran Limited (a 100% subsidiary of MOL
Hungarian Oil and Gas plc.) and Texas Keystone Inc., which have
working interests of 20% and 5% respectively.
-- Following the establishment of a regular payment cycle for
all oil sales and arrears, Gulf Keystone plans to move into the
large-scale phased development of the Shaikan field targeting
100,000 bopd of production capacity during Phase 1 of the Shaikan
Field Development Plan.
Disclaimer
This announcement contains certain forward-looking statements.
These statements are made by the Company's Directors in good faith
based on the information available to them up to the time of their
approval of this announcement but such statements should be treated
with caution due to inherent uncertainties, including both economic
and business factors, underlying such forward-looking information.
This announcement has been prepared solely to provide additional
information to shareholders to assess the Group's strategies and
the potential for those strategies to succeed. This announcement
should not be relied on by any other party or for any other
purpose.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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