Drilling Update

Gulf Keystone Petroleum Ld
17 August 2005




17 August 2005

                        Gulf Keystone Petroleum Limited
                       ("Gulf Keystone" or "the Company")

                                Drilling Update


Gulf Keystone Petroleum, Ltd. (AIM-GKP), an independent oil exploration company,
has completed the RTBW-1 exploration well drilled in the southwest area of Block
126 in northeast Algeria's Constantine Basin.  The well was drilled and logged
to a total depth of 3100 metres.  This well confirms Gulf Keystone's geologic
theory of a new play on Block 126a as well as confirming the presence of
hydrocarbons in the reservoir system.  Although preliminary log analysis and
petro-physical analysis show the reservoir to be structurally lower than the
Company expected, and therefore wet, the directors of Gulf Keystone are
optimistic about the ongoing exploration potential in the southwest area of
Block 126 confirmed by this well.


Gulf Keystone is planning to test this exploration play with a new exploration
well structurally higher to the RTBW-1 well location.  The Company is currently
processing and interpreting existing 3-D seismic data to select another well
location.


Following abandonment, the Company is moving the drilling rig to spud GRJ-2 for
appraisal of Gulf Keystone's GRJ-1 discovery well.


Enquiries:

Gulf Keystone
Todd Kozel - Chief Executive Officer                 (0207 514 1400)


Citigate Dewe Rogerson
Martin Jackson/Nina Soon                             (020 7638 9571)






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