Gulf Keystone Petroleum Regulatory News (GKP)

9 August 2023

Gulf Keystone Petroleum Ltd. (LSE: GKP)

(“Gulf Keystone”, “GKP” or “the Company”)

Operational & Corporate Update

In advance of the publication of its 2023 Half Year Results on 31 August 2023, Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq (“KRI” or “Kurdistan”), is today providing an update on operational and corporate activity.

Jon Harris, Gulf Keystone’s Chief Executive Officer, said:

“While no official timeline has been announced, we continue to believe the suspension of Kurdistan crude exports will be temporary and that the KRG will resume oil sales payments in due course. As political negotiations continue, we remain focused on what is within our control to preserve and bolster liquidity. We are pleased to have commenced local sales in July and partially restarted Shaikan Field production, increasing gross average sales volumes to 11,700 bopd in August to date while receiving payments in advance. We are actively pursuing additional local sales opportunities, although pricing and volumes remain unpredictable. At the same time, we are continuing to reduce our costs, pursue inventory sales and proactively manage our accounts payable. We look forward to providing a further update on progress at our half year results later this month.”

Following the shut-in of the Iraq-Turkey pipeline on 25 March 2023, exports from the Shaikan Field remain suspended and no further oil sales payments have been received from the Kurdistan Regional Government (“KRG”) since the payment of the September 2022 invoice of $26.9 million net on 9 March 2023. Outstanding receivables of $151 million net are owed to the Company for the months of October 2022 to March 2023 on the basis of the KBT pricing mechanism.

While no official timeline has been announced, GKP continues to believe that the suspension of exports will be temporary and that the KRG will resume payments to GKP and other International Oil Companies (“IOCs”) operating in Kurdistan in due course.

In particular, the Company notes that:

In the interim, GKP remains focussed on preserving and bolstering its liquidity by exploring opportunities to increase local crude sales, further reduce costs, pursue inventory sales and proactively manage accounts payable:

Enquiries:

or visit: www.gulfkeystone.com

Notes to Editors:

Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq. Further information on Gulf Keystone is available on its website www.gulfkeystone.com

Disclaimer

This announcement contains certain forward-looking statements that are subject to the risks and uncertainties associated with the oil & gas exploration and production business. These statements are made by the Company and its 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 risks and uncertainties, including both economic and business factors and/or factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. 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.