GRJ-2 WELL TEST

Gulf Keystone Petroleum Ld
15 May 2007


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

                          BLOCK 126a - GRJ-2 WELL TEST


Gulf Keystone Petroleum Limited, an independent oil and gas exploration company
operating in the Republic of Algeria in partnership with SONATRACH, announces
that the Company has abandoned the testing of well GRJ-2 located on Block 126a.


Well test operation and results


Well GRJ-2 was drilled by Gulf Keystone in late 2005. The well encountered
encouraging hydrocarbon shows in Cenomanian / Turonian carbonates, the same
reservoir interval that is currently producing in the GKN-1 well.  Moreover,
both core and image log data acquired over these prospective reservoir intervals
indicated both the presence of fractures and hydrocarbons.  The well was not
tested at the time of drilling due to the lack of availability of suitable test
equipment within Algeria.


During recent operations, Gulf Keystone perforated two potential reservoir zones
over the two intervals: 2291.5 -2337 m and 2221-2276.5 m measured depth. Over
each interval the Company performed an injectivity and step rate test followed
by matrix acidisation (mini frac). The aim of the test program was to connect
the fracture and / or the matrix permeability in the surrounding reservoir, and
thereby access moveable hydrocarbons.


Whilst operations were performed successfully, no hydrocarbons flowed into the
wellbore under test. The well is therefore presently being plugged and
abandoned.


The information contained in this release has been reviewed and approved by Mr
Peter Dempsey (B,Sc, M.Sc), VP Engineering for Gulf Keystone, who has 24 years
experience as a petroleum / reservoir engineer in the oil industry.


Todd Kozel, CEO of Gulf Keystone said:


"We are disappointed that we were not able to establish connectivity with
moveable hydrocarbons in this well.  It is unlikely that we will conduct any
further operations on the GRJ structure.  However, we will, as part of our
overall technical appraisal of the northern blocks, review all geological,
geophysical and engineering data collected during this operation to establish
the likely reasons for the lack of commercial flow from this particular well."


Equities in Block 126a are:

Gulf Keystone Petroleum LTD.        60% (Operator)
SONATRACH                           40%


Enquiries

Gulf Keystone Petroleum             [phone]

Bill Guest

Todd Kozel

Jon Cooper



Hoare Govett Limited                [phone]

Andrew Foster


Citigate Dewe Rogerson:             020 7638 9571

Media enquiries:                    Martin Jackson

Analyst enquiries:                  Kate Delahunty / Nina Soon


or visit: www.gulfkeystone.com



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