gulf keystone announces gas flow at rm-1 well in algeria

Gulf Keystone Announces Gas Flow at RM-1 Well in Algeria

06-27-2008

Gulf Keystone Petroleum Ltd has announced that drilling of the RM-1 exploration well on the Hassi Ba Hamou Permit in Algeria has been completed and tested.

The RM-1 well, which was started on May 7, 2008, reached a total depth of 1,111 meters on a separate prospect some 50 kilometers to the southeast of the HBH gas field. Gas shows during drilling and logging results indicate a 61 meter gas column has been encountered in sands of Siegenian age. During a production test the well flowed gas at a stabilized flow rate of 10,266 cubic meters per hour (8.7 mmscf per day) through a 94/64-inch choke.

With the success of RM-1, GKP has agreed to go into the second prospecting period of the HBH Permit with a work program obligation of 500 km2 of 3D seismic, 1 exploration well and 2 appraisal wells.

The drilling rig will now move to drill well FEG-1, the third and final exploration well to be drilled, and the fourth well in the current six well drilling campaign. This well is expected to spud within a month. No further announcement on the FEG-1 well is planned until the well has been completed.