Operational Update

25 Feb 2008 07:01

Gulf Keystone Petroleum Ld25 February 2008 Not for release, publication or distribution in or into jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction 25 February 2008 GULF KEYSTONE PETROLEUM LIMITED ("Gulf Keystone" or "the Company") Operational Update Start of Drilling of Second Hassi Ba Hamou Well SONATRACH (Algeria's National Oil Company) and partners BG Group (Operator) andGulf Keystone Petroleum Ltd (AIM: GKP) an independent oil exploration companyoperating in Algeria, announce the following operational update in respect ofthe Hassi Ba Hamou Perimeter ("HBH Permit"), which covers 18,380 km2 in theAllal Dome of Central Algeria. The HBHN-1 exploration well which is the second well to be drilled of a six wellcommitment on the HBH Permit was spudded on 21st February 2008. Three appraisal and three exploration wells are to be drilled back to back inthe first exploration phase of the licence which expires in September 2008. Licensees of the HBH Permit are Gulf Keystone 38.25%, BG Group 36.75% andSonatrach 25%. Gulf Keystone farmed out 36.75% of the HBH Permit to BG Groupeffective December 2006. Christopher Garrett, the Company's Vice President of Operations, who has over 29years relevant experience within the sector and who has been involved with thisproject for over 2 years and meets the criteria of a qualified person under theAIM guidance note for mining, oil and gas companies, has reviewed and approvedthe technical information contained in this announcement. Todd Kozel, Chairman and Chief Executive Officer, commented: "Early interpretation of both the 2D and 3D seismic data, over the Hassi BaHamou Permit, has revealed a number of leads and we are pleased that this secondwell continues the good progress being made towards completion of the six wellprogramme." Enquiries Gulf Keystone Petroleum: +44 (0) 20 7514 1400Todd Kozel, Executive Chairman Hoare Govett Limited: +44 (0) 20 7678 8000Andrew Foster Tristone: +44 (0) 207 399 2470Simon Ashby-Rudd Citigate Dewe Rogerson: +44 (0) 20 7638 9571Media: Martin JacksonAnalysts: Kate Delahunty or visit: www.gulfkeystone.com This information is provided by RNS The company news service from the London Stock Exchange