Source: Gulf Keystone Petroleum
Gulf Keystone Petroleum reported that the recently constructed production test facilities near the location of the Shaikan-1 discovery well in the Shaikan Block (75% GKP working interest) of Kurdistan Iraq are being commissioned.
Initial flow rates are low to allow facility commissioning and will be kept low, pending receipt of oil assay results which will assist in determining a domestic sales price and allow finalization of the oil sales contracts. Facility commissioning, assay finalization and sales contract negotiation are expected to take several weeks.
Test operations are well on track to reach the previously announced year end target production rate of 8,000 to 10,000 barrels of oil per day ("bopd").
John Gerstenlauer, Chief Operating Officer for Gulf Keystone said: "This marks the end of a seven month accelerated design and construction project to install the 18,000 bopd capacity facility and the beginning of a long term (18 to 24 month) production test of the top most reservoir in the Jurassic age section of the Shaikan well.
“This extended test of the upper portion of the Jurassic will give us valuable information on production characteristics, market logistics and oil sales procedures within Kurdistan. In addition, use of these prefabricated production facilities will serve as a model for future testing and production of other potential oil accumulations on our acreage."