Result of Equity Issue

Gulf Keystone Petroleum Ld
17 August 2006



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

17 August 2006

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO
                 THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

  THIS IS NOT AN OFFER OF SECURITIES FOR SALE INTO THE UNITED STATES, CANADA,
                               AUSTRALIA OR JAPAN

Result of placing (the "Placing")

Gulf Keystone is pleased to announce the successful completion of the Placing
announced earlier today. A total of 21,600,000 new common shares of US$0.01 each
(the "Placing Shares"), representing approximately 8.5 per cent. of Gulf
Keystone's existing issued share capital, have been placed by Hoare Govett
Limited and Tristone Capital Limited with institutions at a price of 62 pence
per share, raising approximately £13.4 million before expenses.

The Placing Shares will be issued credited as fully paid and will rank pari
passu in all respects with the existing common shares of Gulf Keystone,
including the right to receive all dividends and other distributions declared,
made or paid after the date of issue of the Placing Shares.

The Placing is conditional, inter alia, on admission of the Placing Shares to
trading on AIM ("Admission").

Application has been made for Admission and it is expected that settlement will
occur, Admission will become effective and dealings in the Placing Shares will
commence on 22 August 2006.

Enquiries:

Gulf Keystone Petroleum Limited
Todd Kozel, Chief Executive Officer                     020 7514 1400
Bill Guest, President
Jon Cooper, Finance Director

Hoare Govett Limited
Andrew Foster / Bertie Whitehead                        020 7678 8000
John MacGowan                                           020 7678 1084

Tristone Capital Limited
Nick Morgan / Majid Shafiq                              020 7399 2486
Charles Lesser / Chris Grudniewicz                      020 7399 2485

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

This announcement is for information purposes only and does not constitute an
offer or invitation to acquire or dispose of any securities or investment advice
in any jurisdiction.

Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser.

Hoare Govett Limited, which is authorised and regulated by the Financial
Services Authority, is acting exclusively for Gulf Keystone and for no one else
solely in connection with the Placing and will not be responsible to anyone
other than Gulf Keystone for providing the protections afforded to the customers
of Hoare Govett Limited or for providing advice in relation to the Placing.

Tristone Capital Limited, which is authorised and regulated by the Financial
Services Authority, is acting exclusively for Gulf Keystone and for no one else
solely in connection with the Placing and will not be responsible to anyone
other than Gulf Keystone for providing the protections afforded to the customers
of Tristone Capital Limited or for providing advice in relation to the Placing.

This announcement is not an offer for sale or a solicitation of any offer to
purchase the Placing Shares in the United States. The Placing Shares may not be
offered or sold in the United States absent registration under the US Securities
Act of 1933, as amended (the "US Securities Act") or an exemption therefrom. The
Company does not intend to register any portion of the Placing under the US
Securities Act or to conduct a public offering of the Placing Shares in the
United States. The Placing Shares have not been and will not be registered with
any regulatory authority of any state or other jurisdiction within the United
States.




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