The shares of Gulf Keystone Petroleum closed at 177.50p on 8th
at the UK stock market and has already jumped by 2.54% to reach 182.00p as on 9 January 2014. It
has happened after Gulf Keystone confirmed the start of crude oil exports from the Shaikan field. The
company says that in line with its marketing strategy, which is being developed in co-operation with the
ministry of natural resources of the Kurdistan Regional Government, the first tendered cargo of between
30,000 tonnes (198,300 barrels) and 33,000 tonnes (215,000 barrels) of Shaikan crude was trucked to
Turkey in December and will be loading at the port of Dortyol this month.
A second tender is under way for two further cargoes of similar size of Shaikan crude, which are
expected to be loaded later this month and during February. Sales realisations are expected to be in
accordance with the terms of the production sharing contract for the Shaikan Block and will reflect
transportation and quality adjustments.
Drilling of the Shaikan-7 deep exploration well is continuing in the Jurassic formation, after the top drive
of the Weatherford 319 rig had to be replaced. The well is currently drilling 17 ½” hole below 2,300
metres in the Butmah reservoir. Shaikan-7 will drill into the Triassic and is then expected to penetrate
the Permian with a potential to add to already discovered resources, and first results are expected in Q2
Chief executive Todd Kozel said: “Significant progress has been made since the Shaikan field
development plan was approved in June 2013. We began commercial production 30 days after its
approval and now the first cargo of Shaikan crude is being sold to the international market.
Company also said that it is increasing Shaikan production and developing a flexible marketing strategy
in co-operation with the ministry of natural resources of the Kurdistan Regional Government to achieve
the best price for our crude. The short-term focus is on the trucking export route via Turkey, as it is
working on getting access to the regional pipeline network. All these facts and news confirm that it is
growing as a company and is proud to operate in the Kurdistan Region of Iraq. Gulf Keystone is operator
and has a 75% working interest.
Gulf Keystone Petroleum is surely a stock to watch in 2014 as it will go strong.