Keystone on target to top oil estimates

GULF Keystone Petroleum said yesterday it expects to shortly increase its oil reserves estimates at one of its exploration fields in Kurdistan.

It told investors in a market update that the Shaikan field project held between five and 10 per cent more oil than originally thought, having examined new 3D data.

Previous estimates had put gross volumes at the Shaikan field at between 4.9bn to 10.8bn barrels.

The explorer also said that it expects the results from the ongoing drilling and testing operations at Shaikan-4 and Shaikan-2, which will be followed by the Shaikan-5 and 6 appraisal wells shortly, to “provide the basis for yet another upgrade of the Shaikan oil-in-place numbers”.

John Gerstenlauer, Gulf Keystone’s chief operating officer, said: “We expect the results from the ongoing drilling and testing operations to provide the basis for yet another upgrade of the Shaikan oil-in-place numbers.”

But the firm’s shares fell 2.4 per cent yesterday.