New Exploration Permit

Gulf Keystone Petroleum Ld
26 April 2005


26 April 2005

                         GULF KEYSTONE PETROLEUM LIMITED
                       ("Gulf Keystone" or the "Company")

              NEW EXPLORATION PERMIT ADDS TWO MORE ALGERIAN BLOCKS

Gulf Keystone (AIM-GKP), an independent oil & gas exploration company, today
announces that it has signed an exploration permit covering the Benguecha
Permit, blocks 108 and 128 in north eastern Algeria's Constantine Basin.  This
has increased the Company's interests in the Republic of Algeria to 9 blocks
covering nearly 33,216 square kilometres. The contract for these blocks, which
establishes a joint venture between SONATRACH and Gulf Keystone, was a direct
negotiation outside of the recent international bid round.  In that bid round,
Gulf Keystone was awarded two contracts with reserve estimates of 1.5 billion
barrels of oil equivalent in place.

The contract for the Benguecha perimeter includes one existing oil field
discovered by SONATRACH in 1977, namely Ras Toumb, which flowed at initial rates
of 3,000 barrels of oil per day although the field is currently not producing.
Gulf Keystone is currently shooting a 460 square kilometre 3D seismic survey due
west of the Ras Toumb field on Block 126a.  The Company now plans to extend that
3D seismic survey by approximately 100 square kilometres to cover the Ras Toumb
Field in anticipation of identifying additional infill developmental well sites
to be drilled under the contract in the field.

The primary focus of the J V partners on the Benguecha permit will be the
further appraisal of the Ras Toumb field and the exploration for additional
reserves.  SONATRACH's interpretation of its previously acquired 4,457
kilometres of 2D seismic on the permit has identified 7 additional prospects and
leads, on one of which, OSD, SONATRACH has completed drilling and logging of the
well and has temporarily abandon the well awaiting testing equipment. The
further re-working and testing of this well, OSD-1, will be conducted by the
newly formed SONATRACH/Gulf Keystone joint venture. The Company has committed to
drill 2 wells on the permit over the next three years as a minimum work program.

Todd Kozel, Chief Executive Officer of Gulf Keystone said:

"The award of the Benguecha Permit outside the international bid round is yet
further confirmation of the strong and mutually beneficial relationship that
exists between Gulf Keystone, the Algerian Ministry of Energy and Mines and
SONATRACH.   We now have a range of blocks in Algeria that carry significant
near term production opportunities and substantial exploration upside 
potential."


Enquiries

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