Gulf Keystone Petroleum Regulatory News (GKP)

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20 February 2013

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

New Discovery in the Kurdistan Region of Iraq

Gulf Keystone notes today's update by MOL Hungarian Oil and Gas Plc., the operator of the Akri-Bijeel Block in the Kurdistan Region of Iraq (in which Gulf Keystone has a 20 per cent working interest), on its extensive exploration and appraisal programme.

Bakrman-1 Exploration Well Discovery

Bakrman-1, the first exploration well to target the Bakrman structure on the Akri-Bijeel Block, has made a new Triassic discovery. This is the second discovery on the block following the Bijell discovery made in 2010.

Bakrman-1 spudded in May 2012, 32 km to the north-west of the Bijell-1 discovery well. The well was drilled to a total depth of 4,100 metres in the Kurra Chine B formation in the Triassic, following which a well testing programme commenced, targeting reservoir zones in the Jurassic and Triassic. Two open hole tests and three cased hole tests have been performed to date. According to the operator, the second open hole well test performed at 3,930-4,100 metres MD (measured depth) in the Kurra Chine B formation in the Triassic resulted in calculated daily flow rates of approximately 2,616 barrels of light (32 to 35 degrees API gravity) oil per day and a gas rate of approximately 5.86 million standard cubic feet per day. The well testing programme is ongoing and is expected to be completed in April 2013.

Gulak-1 Exploration Well

Gulak-1, the fourth exploration well to be drilled on the Akri-Bijeel block and the first exploration well to target the Gulak anticline, spudded in July 2012 and has been drilled 21 km to the east from the Bijell-1 discovery well and 5 km to the south from the Bekhme-1 exploration well to a total depth of 3,641 metres in the Kurra Chine B formation in the Triassic. The well test programme, consisting of five tests, has now been completed. In the course of the DST#4 performed at 2,385-2,420 metres MD in the Sargelu and Naokelekan formations in the Jurassic, minor inflows of between 22-30 degrees API oil were encountered. Following the completion of the DST#5, it is proposed that the well will be suspended.

Bijell Appraisal Programme

Bijell-3, the first well to appraise the Bijell discovery, spudded in January 2012. It has been drilled 8km to the north-west of the Bijell-1 discovery well and 26 km to the west-northwest of the Bekhme-1 exploration well to a total depth of 4,980 metres in the Sarki formation in the Lower Jurassic. Following no commercial inflow of hydrocarbons being encountered during the course of a well testing programmeconsisting of seven tests, it is proposed that the well will be abandoned. However, the extensive appraisal programme of the Bijell discovery continues with Bijell-7, which spudded in December 2012 10 km to the south-south-east from the Bijell-1 discovery well, and four further appraisal wells. Bijell-2 and Bijell-5 are scheduled to spud in Q1 2013 and Bijell-4 and Bijell-6 are planned for Q3 2013.

Bijell Extended Well Test

Construction and commissioning of an Extended Well Test facility ("EWT") for the Bijell discovery is ongoing. The Bijell EWT facility, of a total gross capacity of 10,000 barrels of oil per day and a storage capacity of 30,000 barrels, is scheduled to be completed in February 2013. The facility will be tied to the Bijell-1 discovery well, which will be completed as a producer once a work-over rig has arrived in late February 2013 with first test production expected in May 2013.

In addition, the acquisition of 490 km² of 3D seismic data, which commenced in 2012, is continuing.

Shaikan Block

In addition, Gulf Keystone is pleased to provide an update on its ongoing operations on the Shaikan Block in the Kurdistan Region of Iraq.

Shaikan Production Facility (PF-1)

All equipment modules have now been delivered from Calgary, Canada through the port of Mirsin in Turkey and assembly work on the first Shaikan production facility (PF-1) is nearing completion. Despite prolonged cold and snowy weather conditions and delays in the shipping schedule, Shaikan PF-1 will become operational in March 2013. It will be tied to the Shaikan-1, -3 and -4 producing wells and is designed to produce 20,000 barrels of oil per day, processing the crude to export specification. Shaikan PF-1 will be followed by PF-2, also designed to produce 20,000 barrels of oil per day, in mid-2013. Shaikan PF-2 will be tied to the Shaikan-2 and -5 producing wells, as well as Shaikan-10. The Company plans to spud Shaikan-10, the first development well, and Shaikan-7, the first deep exploration well, targeting the mid to lower Triassic and, potentially, Permian horizons, by the end of Q1 2013. Shaikan-10 will be drilled with the Weatherford 842 rig and Shaikan-7 with the Weatherford 319 rig.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented:

"The second discovery on the Akri-Bijeel block marks the beginning of an exciting year for Gulf Keystone. We look forward to joining the ranks of key producers in the Kurdistan Region of Iraq in 2013. In addition to drilling a number of development wells on Shaikan, as well as our first deep exploration well, we anticipate further positive results of the extensive exploration, appraisal and early production programme on the Akri-Bijeel block. We will also focus on appraising the Sheikh Adi discovery, taking into account clear future synergies with Shaikan in terms of production facilities, infrastructure and logistics."

Enquiries:

John Gerstenlauer, the Company's Chief Operating Officer, who has 33 years of relevant experience within the sector and meets the criteria of a qualified person under the AIM note for mining, oil and gas companies, has reviewed and approved the technical information contained in this announcement. Mr. Gerstenlauer is a member of the Society of Petroleum Engineers.

or visit: www.gulfkeystone.com

Notes to Editors:

§ Gulf Keystone Petroleum Ltd. (AIM: GKP) is an independent oil and gas exploration and production company focused on exploration in the Kurdistan Region of Iraq.

§ The Company's shares have traded on the AIM market of the London Stock Exchange since listing on 8 September 2004.

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

§ Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for fourexploration blocks in Kurdistan, including 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 per cent and is partnered with Kalegran Ltd. (a 100 per cent subsidiary of MOL Hungarian Oil and Gas Plc.) and Texas Keystone Inc., which have working interests of 20 per cent and 5 per cent respectively. Texas Keystone Inc. holds its interest in trust for Gulf Keystone, pending transfer of its interest to the Company.

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 announcement (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.