Block 126a: GKN & GKS Oil Fields
The award of a 60% interest in the Ferkane Perimeter Block 126 in 2001 (Sonatrach 40% interest) marked Gulf Keystone’s first entry into Algeria. The Ferkane Perimeter is located in North Algeria, South East Constantine basin. After completing the work program under the Ferkane Perimeter contract in 2005 Gulf Keystone retained a sub area 126a (with the remaining area of 126 being relinquished) containing the GKN and GKS oil fields. Gulf Keystone subsequently submitted a development plan in 2007 for the GKN and GKS oil fields which was approved by ALNAFT (the Hydrocarbon National Agency) in January 2008. This approval conferred on Gulf Keystone entitlement to production from the GKN and GKS oil fields from the 10 October 2007 for a period of 20 years.
The development plan envisages an initial production target of 3,000 barrels of oil per day ("bopd") (net 882 bopd on an entitlement basis to Gulf Keystone) from two wells, GKN-1 & GKS-2. In order to achieve this target a facilities upgrade is required to handle the increased throughput and a work over of the GKN-1 well. Also required is the construction of a spur line to connect the GKS-2 well to an existing local 30 kilometre pipeline which already transports oil from the GKN-1 well to the storage facility at Ras Toumb. Oil is then trucked from the Ras Toumb facility to Biskra where the oil enters the main export line to Skikda on the Mediterranean coast where it can be loaded on to tankers for international shipment. A further phase of the development requires a 3D seismic program and the drilling of development wells.
Block 108 & 128b: Ben Guecha Permit
The Ben Guecha Permit Blocks 108 and 128b, located in North Algeria, South East Constantine Basin, were awarded in April 2005 and cover an area of 4,641 square kilometres . The permit is in close proximity to the GKN and GKS oil fields and contains the Ras Toumb oil storage facility and part of the 30 kilometre local pipeline which transports oil from the GKN-1 well.
