Gulf Keystone Petroleum: Stock to go Strong in 2014

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.