Gulf Keystone updates Kurdistan operations

Gulf Keystone Petroleum Limited, an independent oil & gas exploration company with interests in Algeria and Kurdistan, announces that the 2D seismic programme at Shaikan Block, in Kurdistan, which was completed in April 2008 acquired 171 kilometres using a combination of vibrator and dynamite sources and satisfies the seismic acquisition obligation under the exploration phase of the PSC.

A preliminary interpretation by the Company’s internal technical team of the processed data has confirmed the existence in the subsurface, at the depth of prospective reservoir zones, of the large anticline which is visible at the surface outcrop and is at the surface some 26 kilometres in length and 5 kilometres in width.

The Company is planning to drill a well on the crest of the anticline for late 2008 to be drilled to approximately 3,500m.

The well will target reservoir zones where oil has been discovered elsewhere in Kurdistan and northern Iraq, namely the Qamchuqa, Sehkaniyan and Kurre Chine. Other zones targeted by GKPL as having reservoir potential are the Chia Gara/Najmah and Chia Zairi.

The Shaikan Block is operated by Gulf Keystone Petroleum International Ltd. (GKPL) with a working interest of 75% in partnership with both Kalegran Ltd (Kalegran), a subsidiary of MOL Hungarian Oil and Gas Public Limited Company (MO), and Texas Keystone Inc. (Texas Keystone) with working interests of 20% and 5% respectively.