Option Grant

Gulf Keystone Petroleum Ld
06 January 2006


06 January 2006


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

                              Granting of Options


Gulf Keystone today announces that on 05 January 2006 it granted an option over
2,100,000 Common Shares ("the Shares") in the Company to Mr Bill Guest.  Mr
Guest was appointed President of the Company on 11 November 2005.

The exercise price of the option is 66p per Common Share, which was the closing
price of the existing Common Shares on 05 January 2006.  Consideration of £1 was
paid by Mr Guest for the option.  Exercise of the option is in two equal parts,
1,050,000 Shares on or after 31 December 2008 and 1,050,000 Shares on or after
31 December 2009, with the exercise of each part being conditional on Mr Guest
still being in the employ of Gulf Keystone on 31 December 2008.  The option, if
not exercised in whole or part, will lapse on 31 December 2015.


Enquiries

Gulf Keystone Petroleum: 020 7514 1400
Todd Kozel, CEO
Bill Guest, President

Citigate Dewe Rogerson: 020 7638 9571
Media: Martin Jackson / George Cazenove
Analysts: Nina Soon

or visit: www.gulfkeystone.com


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