Signing of Rig Contract

Gulf Keystone Petroleum Ld
11 October 2004


11 October 2004

                        Gulf Keystone Petroleum Limited

                            Signing of Rig Contract


Gulf Keystone Petroleum Limited ("Gulf Keystone" or the "Company"), an
independent oil exploration company operating in the Republic of Algeria, today
announces final agreement and signing of a one-year contract with drilling
contractor Saipem S.p.A. for Saipem's Drilling Rig 5832.

The rig is currently stacked at Port Harcourt, Nigeria and is expected to be
shortly loaded for shipment to Algeria, clearing Algerian customs at the
beginning of December 2004.  The rig is expected to be on location at Gulf
Keystone's 5,891 km2 Block 126 contract area in northern Algeria and ready to
commence operations by mid-January 2005.

Rig 5832 is capable of drilling to a depth of 6,000 metres with a 5-inch drill
string.  The contract covers work over and drilling as required by Gulf Keystone
with a guarantee of 365 days of work.  The contract also provides for two six
month extensions at the option of Gulf Keystone, subject to 60 days notice, on
the same terms and conditions.


Todd Kozel, Chief Executive Officer and Vice President of Gulf Keystone said:

"Having secured a land rig, 2005 promises to be a very busy year.  We have a
planned programme of development and exploratory drilling on our Block 126
Algeria designed to maximise our exploitation opportunities."


Enquiries

Evolution Securities               020 7071 4300
Rob Collins

Citigate Dewe Rogerson            020 7638 9571
Martin Jackson


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