Gulf Keystone Petroleum Regulatory News (GKP)

Not for release, publication or distribution in or into the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction.

25 June 2010

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Bonus Shares and Long Term Incentive Plan Options

Further to the announcement on 7 June 2010 the Trustee of the Company's Employee Benefit Trust ("EBT Trustee") confirmed on 24 June 2010 that it will subscribe for a total of 3,772,998 new common shares of USD 0.01 (the "Award Shares") to enable it to effect the issue of the Award Shares to directors and employees in respect of one third of the Executive Bonus Scheme (the "Scheme") for 2009, in accordance with the recommendations set out in the announcement of 7 June 2010. The EBT Trustee also confirmed on 24 June 2010 that it has granted a total of 19,532,946 options under the Company's Share Option Plan with Long Term Incentive Performance Conditions ("LTIP Share Options") at a price of 75 pence per share including the recommended grant to Todd Kozel, Ewen Ainsworth and John Gerstenlauer as set out in the 7 June 2010 announcement.

Following the issue of the Award Shares and grant of LTIP Share Options the interests of the aforementioned directors in the share capital of the Company are as follows:

No. of Common Shares Per cent. of Number of options over

enlarged share capital common shares under

the Share Option Plan

Todd Kozel (1) 5,751,115 0.85% 12,766,473

Ewen Ainsworth 871,747 0.13% 2,953,295

John Gerstenlauer 333,333 0.05% 3,953,295

Ali Al-Qabandi (1) 5,633,333 0.83% 1,000,000

Mehdi Varzi (2) 213,333 0.03% 100,000

Lord Truscott (2) 533,333 0.08% 100,000

(1) Todd Kozel and Ali Al-Qabandi are shareholders in Gulf Keystone Petroleum Company LLC which owns 40,000,000 common shares

(2) 33,333 common shares to each of Mehdi Varzi and Lord Truscott will be made directly by the Company and not by the EBT trustee

In addition Gulf Keystone has issued 190,375 new common shares of USD 0.01 ("Advisory Shares") in the Company as payment of advisory fees in relation to the recent fully subscribed placing of 152,300,000 new common shares announced on 25 May 2010.

Following the award to Mehdi Varzi and Lord Truscott along with the Award and Advisory Shares the total issued share capital of Gulf Keystone will be 676,215,161 common shares of USD 0.01. The Company does not hold any common shares in treasury and so the total number of voting rights in the Company is 676,215,161.

Application will be made for admission of 4,030,039 new common shares of USD 0.01 to trading on AIM with effect from 1 July 2010. 

Enquiries:

or visit: www.gulfkeystone.com

Notes to Editors:

§ Gulf Keystone Petroleum Ltd. (AIM: GKP) ("Gulf Keystone" or the "Company") is an independent oil and gas exploration company focused on exploration in the Kurdistan region of Northern Iraq.

§ Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for four exploration blocks in Kurdistan.

§ The Company's shares have traded on the AIM market, since listing on 8 Sept 2004.

§ The Company established a sponsored Level 1 American Depositary Receipt ("ADR") programme on 5th December 2008. The ADRs are traded under the ticker symbol GFKSY in the US over-the-counter ("OTC") securities market of Pink OTC Markets Inc. (www.pinksheets.com)

§ Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with offices in Erbil, Kurdistan, Algiers, Algeria and London, UK.

Not for release, publication or distribution, directly or indirectly, in or into the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.