Gas Plus Khalakan (GPK), a subsidiary of US-based New Age, is set to launch drilling of three wells for Phase 1 of the development plan for the Shewashan oil field in the Kurdistan Region of Iraq, a report said.

Phase 1 targets production of 10,000 barrels of oil per day next year, added the Iraq Business News report.

“Despite the current low oil price environment GPK is fully committed to the development of the Shewashan field reserves and to supporting the KRG as it becomes a significant oil producer on the world stage over the next few years,” Steve Lowden, CEO of New Age was quoted as saying in the report.

“It is a world-class basin that remains a highly economic prospect for the company,” he added.