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Gulf Keystone Petroleum Limited (AIM: GKP), an independent oil and gas exploration company operating in the Republic of Algeria, today announces its preliminary results for the year ending 31 December, 2006.

Highlights

• BG joined SONATRACH and Gulf Keystone as a strategic partner in the HBH licence.
  
  
• £13.4 ($24.7) million raised in August 2006 via a placing of 21,600,000 new common shares.
  
  
• HBH seismic programme under way. Drilling operations expected to commence around the year end.
  
  
• Block 126a licence extension granted for finalization of commerciality of GKN and GKS.
  
  
• Management and technical teams have been significantly strengthened during 2006.
  
  
• Well HEK-3 in Block 129 acid-fractured and tested at a stabilized rate of 1,040 bbl/day in April 2007.
  
  
• Proposed acquisition of the company by RAK Petroleum has been recommended by the Board for shareholder approval.

Todd Kozel, Chief Executive Officer of Gulf Keystone said:

"2006 has been a transformational year for Gulf Keystone. Completion of the HBH farm out, a successful placing of new shares and the building of both a first rate technical and executive management team has provided the Company with the resources to pursue an aggressive programme of activities across its Algerian portfolio in the coming years."

Enquiries

Gulf Keystone Petroleum: 020 7514 1400
Todd Kozel, CEO
Bill Guest, President
Jon Cooper, Finance Director

Hoare Govett Limited: 020 7678 8000
Andrew Foster

Tristone Capital Limited: 020 7399 2470
Simon Ashby Rudd

Citigate Dewe Rogerson: 020 7638 9571
Media enquiries: Martin Jackson / George Cazenove
Analyst enquiries: Nina Soon

or visit: www.gulfkeystone.com

Download the full press release in PDF format (116 KB, opens in a new window)