Gulf Keystone Petroleum : Payment confirmed for Shaikan crude oil exports

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07 September 2015

Gulf Keystone Petroleum Ltd. (LSE: GKP)

('Gulf Keystone' or 'the Company')

Payment confirmed for Shaikan crude oil exports

Gulf Keystone, an independent oil and gas exploration and production company and operator of the world class Shaikan field in the Kurdistan Region of Iraq,is pleased to announce that, further to the statement by the Kurdistan Regional Government of today regarding regular payments to the exporting international oil companies in the region, a payment of US$15 million gross (US$12 million net to Gulf Keystone) has been authorised by the KRG to be wired to the Company's account during the next seven days.

Gulf Keystone now looks forward to the establishment of regular payments for Shaikan export sales.

The statements by the Ministry of Natural Resources made on 3 August 2015 and 7 September 2015 and the statement by the Kurdistan Regional Council for Oil & Gas Affairs made on27 August 2015 are available to view at:

http://mnr.krg.org/index.php/en/press-releases/476-update-on-payments-to-exporting-oil-companies-in-the-kurdistan-region

Commenting on today's news,Jón Ferrier, Gulf Keystone's Chief Executive Officer, said:

'At this critical time for our company and for the entire oil industry in the Kurdistan Region, we welcome the announcement of this payment of US$15 million gross for Shaikan export oil sales and we appreciate the support from our partner, the Kurdistan Regional Government.'

Enquiries:

or visit: www.gulfkeystone.com

Notes to Editors:

· Gulf Keystone Petroleum Ltd. (LSE: GKP) is an independent oil and gas exploration and production company with operations in the Kurdistan Region of Iraq.

· Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for four exploration blocks in Kurdistan, the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.

· GKPI is the operator of the Shaikan block, which is a major commercial discovery, with a working interest of 75% and is partnered with MOL Kalegran Limited (a 100% subsidiary of MOL Hungarian Oil and Gas plc.) and Texas Keystone Inc., which have working interests of 20% and 5% respectively.

· Following the establishment of a regular payment cycle for all oil sales and arrears, Gulf Keystone plans to move into the large-scale phased development of the Shaikan field targeting 100,000 bopd of production capacity during Phase 1 of the Shaikan Field Development Plan.

Disclaimer

This announcement contains certain forward-looking statements. These statements are made by the Company's Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent uncertainties, including both economic and business factors, underlying such forward-looking information. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.