GKP concludes Settlement Agre

RNS Number : 2734H

Gulf Keystone Petroleum Ltd

18 February 2010

 



Not for release, publication or distribution in or into jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction

18 February 2010

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Gulf Keystone concludes Settlement Agreement with BG on HBH Project

Gulf Keystone Petroleum Ltd ("GKP, the Company") is pleased to announce that it has negotiated an agreement with BG North Sea Holdings Limited ("BG") that settles, on confidential terms, the claims and counterclaims between the parties in the previously announced arbitration.

The agreement provides for the immediate stay of the arbitration and the proposed transfer of the Company's interests in the Hassi Ba Hamou ("HBH") Permit for a net cash payment from BG of $9.9m to GKP. The agreement is subject to the conclusion of separate transfer documentation which will require the approval of Sonatrach and any necessary Algerian governmental authorities. Whilst the Company is confident that the necessary approvals will be forthcoming, there is no guarantee this will be the case.

Todd Kozel, Executive Chairman of Gulf Keystone, commented:

"We welcome the agreement with BG which is a significant step in the strategic refocusing of the Company's activities in Kurdistan. Following this transaction, we hope that further announcements will be made with respect to the orderly disposal of the Company's other interests in Algeria."

Enquiries:

Gulf Keystone Petroleum:	[phone]
Todd Kozel, Executive Chairman
Ewen Ainsworth, Chief Financial Officer
Strand Hanson Limited	[phone]
Simon Raggett / Rory Murphy / James Harris
Mirabaud Securities LLP	[phone]
Peter Krens
Brunswick Group LLP	[phone]
Patrick Handley

or visit: www.gulfkeystone.com

Notes to Editors:

§  Gulf Keystone Petroleum Ltd. (AIM: GKP) ("Gulf Keystone" or the "Company") is an independent oil and gas exploration company focused on exploration in the Kurdistan region of Northern Iraq.

§  The Company's shares have traded on the AIM market, since listing on 8 Sept 2004.

§  Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with offices in Erbil, Kurdistan, Algiers, Algeria and London, UK.

 

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