GKS-3 Well Update

Gulf Keystone Petroleum Ld
03 June 2005



3 June 2005


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

                      GKS-3 WELL SUCCESSFULLY SIDETRACKED

Gulf Keystone Petroleum Limited ("Gulf Keystone" or the "Company"), an
independent oil & gas exploration company operating in the Republic of Algeria,
today announces that the company has successfully sidetracked its GKS-3 well to
a total depth of 3,975 metres.

As planned, the sidetrack hole is only 30 metres from the original well and as
expected the well found the same quality reservoir.  Analysis carried out by
Gulf Keystone's third party petrophysical consultants shows hydrocarbons
predicted from a gross interval of 37 metres containing 20 metres of net pay, as
encountered in the original well.  Gulf Keystone chose to sidetrack the GKS-3
well in order to overcome a mechanical condition in the original hole that
prohibited completion by perforation and acid stimulation of the productive
interval, the same operation that was required to produce flow in both the GKS-2
and the GKN-1 wells.

Gulf Keystone has scheduled Halliburton to bring in a snubbing unit in July to
clean out, reperforate, test, and complete the GKS-2 well. This snubbing unit
will then be moved just 1 kilometre to the GKS-3 well for acid stimulation,
testing, and completion of the pay zone similar to that performed by Sonatrach
on the GKS-2 well.

The drilling rig contracted by Gulf Keystone is currently moving from the GKS-3
location to the RTBW-1 exploratory location.

Enquiries

Gulf Keystone (0207 514 1400)
Caroline Brown - Chief Financial Officer

Evolution Securities (020 7071 4300)
Stuart Andrews

Citigate Dewe Rogerson (020 7638 9571)
Kate Delahunty/Nina Soon


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