Companies: GKP   

AIM-quoted Gulf Keystone Petroleum, which is prospecting for oil in Algeria, plans to pursue new opportunities with prospective partners there and elsewhere in North Africa and the Middle East after a ‘pivotal year’ in which the company raised £60 million at 48p and drilled its first two exploration wells. Robert Tyerman reports.

Backed by United Arab Emirates tycoon Sheikh Sultan Bin Saqr Al-Qassimi, Gulf Keystone lost £1,750 in 2004 and completed the drilling of wells GRS-1 and RDL-1 on Block 126a in Algeria. The company was subsequently awarded an extension on Block 126a, where it is entitled to a possible 107 million barrels out of an estimated 221 million barrel total, until April 2006.

Gulf Keystone also won three further contracts, adding eight additional Algerian blocks, in the face of ‘fierce international competition’. Out of 25 companies bidding for the nine blocks available, only four companies were awarded contracts: BP, Shell, BHP and Gulf Keystone.

Chief executive Todd Kozel says the company is now starting a programme of development drilling. At 61p, the shares have speculative appeal.