BG Group And Partners Start Drilling hbhn 1 well in algeria

BG Group And Partners Start Drilling HBHN-1 Well in Algeria

02-26-2008

SONATRACH (Algeria’s National Oil Company) and partners BG Group (Operator) and Gulf Keystone Petroleum Ltd (AIM: GKP) an independent oil exploration company operating in Algeria, announce the following operational update in respect of the Hassi Ba Hamou Perimeter ("HBH Permit"), which covers 18,380 km2 in the Allal Dome of Central Algeria.

The HBHN-1 exploration well which is the second well to be drilled of a six well commitment on the HBH Permit was spudded on 21st February 2008.

Three appraisal and three exploration wells are to be drilled back to back in the first exploration phase of the licence which expires in September 2008.

Licensees of the HBH Permit are Gulf Keystone 38.25%, BG Group 36.75% and Sonatrach 25%. Gulf Keystone farmed out 36.75% of the HBH Permit to BG Group effective December 2006.

Todd Kozel, Chairman and Chief Executive Officer of Gulf Keystone, commented:
“Early interpretation of both the 2D and 3D seismic data, over the Hassi Ba Hamou Permit, has revealed a number of leads and we are pleased that this second well continues the good progress being made towards completion of the six well programme."