Significant Oil Discovery in the Kurdistan Region of Iraq

[KURDISTANICA]

RNS Number : 9678W
Gulf Keystone Petroleum Ltd
06 August 2009

Not for release, publication or distribution in or into jurisdictions
other than the United Kingdom and Bermuda where to do so would
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6 August 2009

Gulf Keystone Petroleum Ltd.
("Gulf Keystone" or "the Company")

Significant Oil Discovery in the Kurdistan Region of Iraq
Shaikan-1, Shaikan Block

Gulf Keystone Petroleum Ltd. (AIM: GKP), an independent oil and gas
exploration company announces that Gulf Keystone Petroleum
International (50% GKP, 50% ETAMIC) has made a significant discovery
at the Shaikan-1 exploration well. The well is located in the Shaikan
Block, situated near the city of Dihok, approximately 85 kilometres
North-West of Erbil in the Kurdistan region of Northern Iraq.

The well has encountered oil in the Sargelu formation at a depth of
1,450 to 1,510 meters. Shallow zone live oil shows within the
formation were announced on 24 June 2009 on initial drilling.
Preliminary test rates indicate 5,000 to 8,000 barrels of 21 to 22
degree API oil per day with wellhead pressures of 380 to 295 pounds
per square inch. The measured oil properties for this section are
comparable to the oil now being produced at the Tawke Field, located
to the north west of the Shaikan Block.

Gulf Keystone will use this new data along with existing seismic and
geological data to evaluate the potential resources discovered in this
formation. GKP is currently using 300 to 500 million barrels of oil in
place as a preliminary estimate for the tested interval.

In addition to these well test results, it should be noted that the
primary zones of interest for the Shaikan-1 exploration well are the
underlying Alan and Mus formations, in which we are targeting
potential further oil bearing zones with possible oil in place values
in excess of 1.5 billion barrels. Indications are that these
formations will yield additional oil-bearing zones as we drill ahead
to our next casing point at approximately 2,500 metres, following the
current well test, before subsequently reaching final target depth at
3,200 to 3,500 metres, depending on well results.
Todd Kozel, Executive Chairman of Gulf Keystone, commented:
"We are excited by this initial discovery, the first ever successful
oil flow test from the Sargelu formation in Iraq.

We are also encouraged by the implications of this initial discovery
for the prospectivity of the remaining portion of the Shaikan-1 well,
and the two recently acquired blocks to the west of Shaikan,
especially the Sheik Adi Block (80% GKPI).

These initial results offer an early validation of the company's
decision to redefine its strategic focus on the Kurdistan Region of
Iraq."

Enquiries

Gulf Keystone Petroleum:
+44 (0) 20 7514 1400
Todd Kozel, Executive Chairman

Ewen Ainsworth, Chief Financial Officer



RBC Capital Markets:
+44 (0) 20 7653 4667
Sarah Wharry



Tristone Capital Limited:
+44 (0) 20 7355 5800
Simon Ashby-Rudd

Majid Shafiq



Brunswick Group LLP:
+44 (0) 20 7404 5959
Patrick Handley


or visit: www.gulfkeystone.com

John Gerstenlauer, the Company's Chief Operating Officer, who has 31
years of relevant experience within the sector meets the criteria of a
qualified person under the AIM guidance note for mining, oil and gas
companies and has reviewed and approved the technical information
contained in this announcement. Mr. Gerstenlauer is a member of the
Society of Petroleum Engineers.

This information is provided by RNS
The company news service from the London Stock Exchange

END

http://www.gulfkeystone.co.uk/rdistan%20Update%20-%20July%2009.aspx