GKS-3 Well Update

Gulf Keystone Petroleum Ld
24 October 2005




24 October 2005


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


                               GKS-3 Well Update


Gulf Keystone (AIM - GKP.L), an independent oil and gas exploration company
operating in the Republic of Algeria, today announces a non-commercial well test
on its GKS-3 appraisal well on Block 126A in Algeria. The well was drilled to
3,981 metres and tested but failed to produce hydrocarbons from the fractured
limestone reservoir section.


Because of the complexity of the fractured carbonate reservoir, the company and
its advisors had always assumed 50% drilling success rates. Consequently, these
well results fit with previous economic and risk modelling and expectations, and
the company does not perceive any negative economic impact on the reserves of
the GKS field. Indeed, Gulf Keystone is optimistic about the GKS field which
recently tested the discovery well GKS-2 at 4,586 barrels of oil per day and
4.61 million cubic feet of gas per day.


The company will now move the rig and equipment to the GRJ field located in the
southeast of Block 126A to await the completion of the drilling of the GRJ-2
well and to test both the GRJ-1 and GRJ-2 wells.


Todd Kozel, CEO of Gulf Keystone Petroleum, said:
"While this GKS-3 result is disappointing, we have begun the process of applying
for a production licence for the GKS field following the successful testing of
the GKS-2 well. The company will now be focusing on both moving the GKS
structure into commercial production and drilling the GRJ-2 well and testing the
GRJ-1 well."





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


Citigate Dewe Rogerson (020 7638 9571)
Media: George Cazenove
Analysts: Nina Soon




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