Development Plan Approved

Gulf Keystone Petroleum Ld
10 January 2008



                        GULF KEYSTONE PETROLEUM LIMITED



                       ("GULF KEYSTONE" OR THE "COMPANY")



                   ALNAFT APPROVES GKN & GKS DEVELOPMENT PLAN





SONATRACH (Algeria's national oil company) and partner Gulf Keystone Petroleum
Ltd (AIM: GKP) are pleased to announce the approval by ALNAFT (the Hydrocarbon
National Agency), of the proposed Development Plan for the GKN and GKS oil
fields (60% Working Interest, 30% Net Revenue Entitlement) located in North
Algeria, South East Constantine basin, Block 126a.



On 25 June 2007, prior to receiving ALNAFT'S approval, the SONATRACH / Gulf
Keystone joint Management Committee for the 126a block unanimously approved the
declaration of commerciality for the GKN and GKS fields.



SONATRACH and Gulf Keystone will work together to manage this field development.
  The field Development Plan envisages producing oil from the GKN-1 well
(currently producing at approximately 1,200 bopd gross) and bringing the GKS-2
well on stream as soon as practicable.



As part of the Development Plan, SONATRACH and Gulf Keystone intend to build a
pipeline to connect GKS-2 to the existing evacuation pipeline so that this well
can begin production.  The GKS-2 well produced at a rate equivalent to 4,586
bopd and 4.61 mmcfgd when it was tested in 2005.  The two fields will then be
developed in a staged process through the acquisition of a 3-D seismic survey
and a development drilling programme jointly conducted by SONATRACH and Gulf
Keystone.



The plateau production rate is expected to be c3,000 gross bopd which is
presently constrained by available facilities.



The GKN-GKS oil field is presently the only partnership project in development
phase in northern Algeria.



Christopher Garrett, the Company's Vice President of Operations, who has over 29
years relevant experience within the sector and who has been involved with this
project for over 4 years and meets the criteria of a qualified person under the
AIM guidance note for mining, oil and gas companies, has reviewed and approved
the technical information contained in this announcement.



Todd Kozel, Executive Chairman and Chief Executive of Gulf Keystone said:



"The Declaration of Commerciality by SONATRACH in June of last year and today's
announcement of Approval by ALNAFT of the GKN and GKS field Development Plan are
significant milestones for Gulf Keystone.  Gaining a share of production
revenues from the GKN and GKS fields, Gulf Keystone's first, evolves and
balances Gulf Keystone's asset base by adding production to an already exciting
Algerian exploration portfolio.



"We look forward to working with SONATRACH to jointly develop and produce the
GKN and GKS fields."







Enquiries



Gulf Keystone Petroleum:                           [phone]

Todd Kozel, Executive Chairman and CEO

Ali Al-Qabandi


Hoare Govett Limited:                              [phone]

Andrew Foster



Tristone:                                          [phone]
5800

Simon Ashby-Rudd



Citigate Dewe Rogerson:                            [phone]
Media: Martin Jackson
Analysts: Kate Delahunty



or visit: www.gulfkeystone.com














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