Operational Update

Gulf Keystone Petroleum Ld
13 December 2007



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                        GULF KEYSTONE PETROLEUM LIMITED
                       ("Gulf Keystone" or the "Company")


                             OPERATIONAL UPDATE 
 
               START OF DRILLING ON HASSI BA HAMMOU IMMINENT


Gulf Keystone (AIM: GKP), an independent oil exploration company operating in
Algeria and Kurdish Region of Iraq, announces the following operational update
in respect of the Hassi Ba Hammou Perimeter ("HBH Permit") licence, which covers
18,380 km2 in the Allal Dome of Central Algeria.


Hassi Ba Hammou Gas Field - Appraisal Well and 3D seismic programme


The HBH Permit contains the significant Hassi Ba Hamou gas field that was
discovered by SONATRACH in 1965 and confirmed by a third well, drilled by
SONATRACH, HBH-3, in January 2005.


The first well of a six well programme on the HBH Permit, HBH-4, will be an
appraisal well on the Hassi Ba Hamou gas field, to evaluate the extent of the
field and continuity of the gas accumulation.  It is anticipated that this well
will spud during mid-December 2007 once commissioning and acceptance of the rig
is completed.


The 3D seismic programme which is being shot over the Hassi Ba Hamou gas field
is 96% complete (512km2 of 533km2). It is currently estimated that the 3D
seismic programme, which began in July 2007, will be completed by the end of
2007.


HBH Permit - 2D seismic programme completed


The HBH Permit wide 2D seismic programme targeting prospects and leads over the
licence was completed on the 4th December 2007 with 2047km of seismic having
been acquired to fulfil the 2000km commitment.  The preliminary results are
currently under evaluation.


Early indications from the 2D seismic interpretation are that a number of
promising leads have been identified over the HBH Permit, three of which the
partners have agreed to prioritise as drill targets.


Six Well Drilling Programme


The HBH-4 field appraisal well is the first well of the six well commitment on
the Hassi Ba Hamou Permit. Three appraisal and three exploration wells will be
drilled and tested 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 September 2006.  BG Group is operator.



Todd Kozel, Chairman and Chief Executive Officer, commented:

"The completion of the HBH Permit 2D seismic acquisition programme marks
significant progress for Gulf Keystone in the exploration of this licence.
Early interpretation of both the 2D and 3D seismic data, over the Hassi Ba Hamou
Permit and the Hassi Ba Hamou gas discovery, has revealed a number of promising
leads and we are excited to be commencing drilling with the first of a six well
programme due to spud imminently."



Enquiries:

Gulf Keystone Petroleum                                         [phone]
Todd Kozel
Ali Al-Qabandi


Citigate Dewe Rogerson                                          [phone]
Media enquiries: Martin Jackson / George Cazenove
Analyst enquiries: Kate Delahunty


Hoare Govett Limited                                            [phone]
Andrew Foster
Stephen Bowler


Tristone                                                        [phone]
Simon Ashby-Rudd




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