The UK-listed Gulf Keystone Petroleum has announced a new discovery at its Sheikh Adi production sharing block in the Kurdistan Region of Iraq.

Gulf Keystone notified the Adi Block Management Committee of the discovery on 7 November, following the completion of a well testing programme at the Sheikh Adi-2 exploration well.

The well was first drilled in May, down to a total depth of 2,754 metres by September. It is located to the west of the company’s Shaikah Block, where it has also made discoveries.

Four oil reservoir zones were tested, at depths of between 1,420m to 1,700m, with flow rates of 4,235 barrels a day (b/d), according a statement on 8 November.

A discovery report will be submitted to the Sheikh Adi committee within 30 days.

Gulf Keystone signed a production sharing contract with the Kurdistan Regional Government (KRG) in July 2009. It has a 80 per cent stake in the block, while the KRG owns the rest.

It is also the operator of the Shaikan Block, in which it has a 75 per cent stake. The block is estimated to contain between 12.4 to 15 billion barrels of oil. The company is currently commissioning two new early production facilities, which will allow the production of 40,000 b/d by the middle of 2013.