Gulf Keystone Petroleum : Standstill Agreement

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14 June 2016

Gulf Keystone Petroleum Ltd. (LSE: GKP)

('Gulf Keystone' or 'the Company')

Standstill Agreement with the Ad Hoc Committee of Holders of Notes and Bonds

US$250,000,000 13.0 per cent. Guaranteed Notes due 2017 (ISINs: Regulation S XS1056559245, Rule 144A XS1056559088) (the 'Notes') and US$325,000,000 6.25 per cent. Convertible Bonds due 2017 (ISIN: XS0841237497, Common Code: 084123749) (the 'Bonds')

Further to the Company's announcement of 1 June 2016, Gulf Keystone confirms that the Standstill Agreement with the Ad Hoc Committee of holders of Notes and Bonds has been extended until 1 July 2016.

The signatories to the extension of the Standstill Agreement are the same as to the prior standstill. They hold a significant proportion (but less than 75% by principal amount) of each of the Company's Notes and Bonds.

Whilst the Standstill Agreement remains in effect, the Company does not intend to make the April 2016 Coupon Payments. The continuing failure to make those payments constitutes an Event of Default under the Bonds and Notes, respectively. At a time when an Event of Default subsists the holders of not less than one-quarter of the principal amount of the Notes or the Bonds, as the case may be, then outstanding may request the relevant Trustee to declare the principal amount of the Notes or the Bonds, as the case may be, immediately due and payable.

The signatories to the extension to the Standstill Agreement have agreed not to vote in favour of any resolution of the Noteholders or Bondholders to instruct the relevant Trustee to take such a step.

A further announcement will be made in due course.

Enquiries:

Notes to Editors:

· Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq and the operator of the Shaikan block, which is a major producing field with 40,000 barrels of production capacity

· Further information on Gulf Keystone is available on its websitewww.gulfkeystone.com

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.