Gulf Keystone Completes HBH-5 in Algeria

Source: www.gulfoilandgas.com 11/6/2008, Location: Africa

Gulf Keystone Petroleum Ltd (AIM: GKP), an independent oil and gas exploration company with interests in Algeria and Kurdistan, is pleased to announce that drilling and testing of the HBH-5 appraisal well on the Hassi Ba Hamou Permit (HBH Permit) in Algeria has been completed.

The HBH-5 well, which was spudded on 28 September 2008, reached a total depth of 928 metres. The well penetrated the Devonian age gas reservoir as predicted by the Gulf Keystone technical team and proves the extension of the HBH gas field to the south east. Furthermore, during a production test a stabilised flow rate of 11,366 cubic meters per hour (9.5 mmscfg per day) was achieved through a 96/64-inch choke.

The drilling rig will now move to drill appraisal well HBH-6, the sixth and final well of the first prospecting period on the HBH Permit. This well completes the work commitments during this phase. HBH-6 is expected to spud within a month. No further announcement on the HBH-6 well is planned until the well has been completed.

The HBH Permit, which contains the HBH gas field, was awarded in April 2005. It comprises five blocks within an area of 18,380 square kilometres in the Bechar Basin in Algeria's Western Desert.

Christopher Garrett, the Company's Vice President of Operations, who has over 29 years relevant experience within the sector and who has been involved with this project for over 2 years, has reviewed and approved the technical information contained in this announcement.

Mr. Todd Kozel, Executive Chairman, Gulf Keystone, commented:

"Taken with HBH-4 and RM-1, this is now our third successful well on the HBH Permit. Particularly pleasing is that HBH-5 proves the extension of the gas field and has flow tested at similarly good rates to our previous two successes. This result amply justifies our recent decision to enter the second prospecting phase on the HBH Permit, with its further seismic, exploration and appraisal well commitment, and also emphasises the high prospectivity of the HBH Permit."


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