Gulf Keystone Petroleum Regulatory News (GKP)

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1 October 2015

Gulf Keystone Petroleum Ltd. (LSE: GKP)

("Gulf Keystone" or "the Company")

Competent Person's Report Update

Significant de-risking: Shaikan 2P Reserves more than double to 639 million barrels

Gulf Keystone today announces the release of an updated independent third-party audit of the Company's Reserves, Contingent Resources and Prospective Resources for its oil & gas interests in the Kurdistan Region of Iraq, including the Shaikan and Sheikh Adi fields operated by Gulf Keystone.

Today's updated Competent Person's Report ("CPR") was again prepared by ERC Equipoise ("ERCE") and follows the first report published in March 2014. The updated CPR is available on the Company's website at http://www.gulfkeystone.com/investor-centre/presentations-and-technical-reports.

The focus on the Shaikan field has evolved from oil-in-place to recoverable reserves and the updated CPR highlights the enhanced understanding of the field. With over 15 million barrels now produced from the Jurassic, the substantial production and reservoir data acquired over the last 18 months have given a much improved understanding of the field's recovery mechanism. The Company now has greater certainty in its ability to develop the increased 2P Reserves - fewer wells and reduced capex per barrel will feature in the updated Shaikan Field Development Plan ("FDP").

Shaikan

· 1P Reserves have increased by 55% compared to the March 2014 1P estimate from 198 to 306 million barrels gross, which is greater than the original 2P estimate

· 2P Reserves increased by 114% from 299 to 639 million barrels gross, significantly de-risking the field's commerciality

· The field's recovery mechanism, now recognised as being by solution gas rather than a water drive, results in greater predictability of field performance, increased reserves per well and lower capex per barrel

Sheikh Adi

· Work on an FDP for the appraisal area is underway

· FDP approval is expected to lead to a future re-classification of 2C Resources (currently at 112 million barrels gross) to 2P Reserves

· A new prospect in the north-west of the block identified with 169 million barrels gross of Prospective Resources

CPR Methodology

ERCE has audited the reserves assessment in compliance with PRMS/SPE reporting guidelines.

The table below represents the updated CPR's conclusions on Shaikan Reserves, Contingent Resources and Technically Recoverable Volumes(1) in comparison with the March 2014 CPR:

Commenting on the publication of the updated CPR, Jón Ferrier, CEO, said:"Today's announcement is a further independent endorsement of the calibre of Shaikan as a world-class field. With cumulative production to date of over 15 million barrels, the Company benefits from a vastly increased dataset and a far greater understanding of the reservoir."

"Our technical confidence has markedly improved. In what was already a low production cost operation in the Kurdistan Region, the Company is working on an updated FDP to develop the increased 2P Reserves with fewer wells, lower capex per barrel and greater reserves per well."

A live webcast of the presentation to analysts will be available at 11am (BST) today on the Company's website www.gulfkeystone.com 

Enquiries:

or visit: www.gulfkeystone.com

Notes to Editors:

· Gulf Keystone Petroleum Ltd. (LSE: GKP) is an independent oil and gas exploration and production company with operations in the Kurdistan Region of Iraq.

· Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for four exploration blocks in Kurdistan, the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.

· GKPI is the operator of the Shaikan block, which is a major commercial discovery, with a working interest of 75% and is partnered with MOL Kalegran Limited (a 100% subsidiary of MOL Hungarian Oil and Gas plc.) and Texas Keystone Inc., which have working interests of 20% and 5% respectively. 

· Following the establishment of a regular payment cycle for all oil sales and arrears, Gulf Keystone plans to move into the large-scale phased development of the Shaikan field targeting 100,000 bopd of production capacity during Phase 1 of the Shaikan Field Development Plan.

Disclaimer

This announcement contains certain forward-looking statements. These statements are made by the Company's Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent uncertainties, including both economic and business factors, underlying such forward-looking information. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.