Gulf Oil and Gas accountACCOUNT

Jurassic Zone Test on The Shaikan-1 Discovery Well

Source: www.gulfoilandgas.com 8/5/2010, Location: Middle East

Gulf Keystone announces the results of further testing of the Butmah (1783m to 1814m) section of the Jurassic on its Shaikan-1 discovery well. Final production rates during this week's re-test were measured at 4650 bopd with an API gravity of 17.68 degrees and a gas oil ratio of 34 standard cubic feet per barrel of oil at a flowing wellhead pressure of 295 psi. This is in line with the previously estimated rate.

The Mus (1627m to 1667m) section of the Jurassic will be re-tested next, followed by the Sargelu (1450m to 1510m), which will then also be configured for long term production testing.

John Gerstenlauer, Chief Operating Officer for Gulf Keystone said, "I am encouraged by this verification of the flow capacity of the Butmah formation. This test represents another step in our efforts to confirm and define the magnitude of the Shaikan discovery. The well has now demonstrated an aggregate flow capacity of over 20,000 bopd from just a fraction of the total prospective interval. I look forward to further testing and also to commercial oil sales from the long term test of the Sargelu, commencing later this year."



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