Drilling Report

Gulf Keystone Petroleum Ld
31 January 2008

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the United Kingdom and Bermuda where to do so would constitute a contravention
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31 January 2008



                        GULF KEYSTONE PETROLEUM LIMITED

                       ("Gulf Keystone" or "the Company")


                                DRILLING UPDATE

                     SUCCESSFUL TEST OF HBH-4 WELL, ALGERIA


SONATRACH (Algeria's National Oil Company) and partners Gulf Keystone Petroleum
Ltd (AIM: GKP) and BG Group (Operator) are pleased to announce that drilling on
the HBH-4 appraisal well, on the Hassi Ba Hamou ("HBH") gas field in Algeria,
has been completed and the well tested.


The drilling of the HBH-4 well began on 16 December 2007 to a total depth of
1,011 metres.


A production test has been carried out on reservoirs of Devonian age.  A
stabilised flow rate of 12,800 cubic meters per hour (10.8 mmscfg per day) was
achieved through a 88/64-inch choke.


The HBH permit, which contains the HBH gas field, was awarded in May 2005 ("HBH
Permit"). It comprises five blocks within an area of 18,380 square kilometres in
the Bechar Basin in Algeria's Western Desert.


Partners in the HBH Permit are Gulf Keystone 38.25%, BG Group 36.75% and
SONATRACH 25%.


The drill rig will now move to drill well HBHN-1, an exploration well to the
north of the HBH gas field.


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 2 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.


Mr. Todd Kozel, Executive Chairman, Gulf Keystone, commented:


"This is the first well in a series of 6, 3 appraisal and 3 exploration, that
the Association plans to drill back to back on the Hassi Ba Hamou Permit.


"The well was completed on schedule and to budget with the test data and flow
rate in-line with our expectations. This gives us valuable information on the
resource potential of the permit and encouragement as we move onto the first
exploration well on the HBH permit."




Enquiries


Gulf Keystone Petroleum:                           [phone]
Todd Kozel, Executive Chairman

Hoare Govett Limited:                              [phone]
Andrew Foster

Tristone:                                          [phone]
Simon Ashby-Rudd

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

or visit: www.gulfkeystone.com


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