Operational Update

Gulf Keystone Petroleum Ld
25 February 2008



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25 February 2008



                        GULF KEYSTONE PETROLEUM LIMITED

                       ("Gulf Keystone" or "the Company")


                               Operational Update


                Start of Drilling of Second Hassi Ba Hamou Well



SONATRACH (Algeria's National Oil Company) and partners BG Group (Operator) and
Gulf Keystone Petroleum Ltd (AIM: GKP) an independent oil exploration company
operating in Algeria, announce the following operational update in respect of
the Hassi Ba Hamou Perimeter ("HBH Permit"), which covers 18,380 km2 in the
Allal Dome of Central Algeria.


The HBHN-1 exploration well which is the second well to be drilled of a six well
commitment on the HBH Permit was spudded on 21st February 2008.


Three appraisal and three exploration wells are to be drilled back to back in
the first exploration phase of the licence which expires in September 2008.


Licensees of the HBH Permit are Gulf Keystone 38.25%, BG Group 36.75% and
Sonatrach 25%. Gulf Keystone farmed out 36.75% of the HBH Permit to BG Group
effective December 2006.


Christopher Garrett, the Company's Vice President of Operations, who has over 29
years relevant experience within the sector and who has been involved with this
project for over 2 years and meets the criteria of a qualified person under the
AIM guidance note for mining, oil and gas companies, has reviewed and approved
the technical information contained in this announcement.


Todd Kozel, Chairman and Chief Executive Officer, commented:


"Early interpretation of both the 2D and 3D seismic data, over the Hassi Ba
Hamou Permit, has revealed a number of leads and we are pleased that this second
well continues the good progress being made towards completion of the six well
programme."



Enquiries


Gulf Keystone Petroleum:                           [phone]
Todd Kozel, Executive Chairman


Hoare Govett Limited:                              [phone]
Andrew Foster


Tristone:                                          [phone]
Simon Ashby-Rudd


Citigate Dewe Rogerson:                            [phone]
Media: Martin Jackson
Analysts: Kate Delahunty


or visit: www.gulfkeystone.com




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