Genel Energy's new N.Iraq well results inconclusive

The well will be temporarily suspended while a work over rig is moved to the location to conduct an extended well test, the British oil companies said. "Although this is an initially disappointing result, it would seem that Genel would like to re-assess its options for this well," Seymour Pierce analyst Dougie Youngson said. "This is Gulf Keystone's first real disappointment in Kurdistan ... we do expect the market to see this news negative for both Gulf Keystone and Genel today."

The well encountered a 300 meter oil column and two drill stem tests over the interval failed to flow, with evidence of perforations plugged with heavy oil. "While the presence of a significant oil column is encouraging, further evaluation with the right flow test equipment is required before we can determine whether this discovery is commercially viable," said Tony Hayward, chief executive of Genel Energy co-owned by billionaires Mehmet Emin Karamehmet and Mehmet Sepil as well as British investors. Genel is the operator of the Ber Bahr block. Gulf Keystone and Genel each hold a 40 percent working interest in the block.