Key Petroleum shares leap on gas find17/03/2008 By: Helen...

Key Petroleum shares leap on gas find
17/03/2008 By: Helen Schuller

Key Petroleum shares leap on gas find Key Petroleum Limited (KEY) shares were trading more than 101% higher at 1427 AEDT on Monday after the company said its Kiliwani North #1 well had intersected a gross gas column of 60 metres, in Neocomian sandstones, the same producing reservoir as in the nearby Songo Songo gas field. The company said electric logging and formation pressures taken within the well confirmed the presence of gas.
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Managing director and CEO Ken Russell said the success had exceeded its pre-drill expectations and it was very pleasing for the Key Petroleum team.

“The fact that the well can be completed as a production well is very significant for a young company such as Key Petroleum. This well adds to our understanding of the area and provides us with substantial technical information to assist us in our investigations of the potential of the Nyuni block,” Mr Russell said.

“The well has also confirmed the presence of potential sandstone reservoirs in the Tertiary section which may be a target in future wells.”

Mr Russell said the well had been drilled, ahead of schedule, to a depth of 2030 m RT.

“The close proximity of Kiliwani North #1, approximately 2km, to the Songo Songo gas field means that the well will be completed as a future gas production well immediately following drilling,” he said.

Mr Russell added that further appraisal drilling would be required to confirm the actual size of the Kiliwani North structure but Key Petroleum believed that this success enhanced the prospectivity of the east coast of Tanzania.

At 1531 AEDT, shares of Key Peteroleum was trading up 5.8c or 86.6% to 12.5c.