Stmnt re Share Price Movement

Gulf Keystone Petroleum Ld
06 February 2007



6th February 2007

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

                Statement regarding recent share price movement


The Board of Gulf Keystone notes the recent share price movement.

The Company announces that it has received an approach and is currently in
discussions which may or may not lead to an offer being made for the whole of
the issued and to be issued share capital of the Company.  The indicative offer
price is 78 pence per issued and to be issued common share of Gulf Keystone.
Although the proposed transaction terms are still subject to final documentation
and final board approvals, the offer price and other key terms of the
transaction have been reviewed by the Company's and the offeror's boards.

There can be no certainty that final agreement will be reached and an offer
made, completion of any transaction will be subject to the approval of the
relevant Algerian authorities.

A further announcement will be made in due course.


Enquiries:

Citigate Dewe Rogerson: [phone]

Martin Jackson
George Cazenove





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