Potential 18 billion barrels!!!!!!!!!!!!!!!!


14 January 2010


Gulf Keystone Petroleum Ltd. (AIM: GKP)
("Gulf Keystone" or "the Company")


Significantly Increased Oil in Place Numbers for Shaikan Discovery




Shaikan-1 has been independently evaluated by Dynamic Global Advisors ("DGA").
This final evaluation report reviewed the data from the Cretaceous, Jurassic and
Triassic formations of Shaikan-1 tested to a depth of 2,950 meters and was
carried out in accordance with the Petroleum Resources Management System
("PRMS") guidelines, using SPE definitions.


Key findings:
* The range of oil in-place for the Shaikan structure has been increased to a
gross 1.9 (P90) to 7.4 (P10) billion barrels of oil, with a mean of 4.2 billion
barrels of oil in place. Previous estimates were 1.0 (P90) and 5.0 (P10). In
addition, there is upside potential (P1) up to a total of 13 billion barrels of
oil in place.
* There are also prospective resources below 2,950 meters (lower Triassic and
Permian). The DGA Executive Summary states that: "Potential resources for these
deeper formations are 1 to 5 BBO and 6 to 14 TCF, which is in addition to the
P1 upside estimate of 13 BBO".
* In addition the DGA Executive Summary confirms that: "This discovery greatly
reduces the geologic risks in the Sheikh Adi, Akri Bijeel and the Ber Bahr
blocks, Gulf Keystone's adjacent opportunities. The Shaikan discovery proves the
presence of hydrocarbon source and migration in the area.
* The Shaikan-1 well has discovered a significant resource of oil and gas in the
Cretaceous Sarmord, Jurassic Barsarin, Sargelu, Alan, Mus, Butmah, Baluti and
Triassic Kurre Chine formations



Shaikan Oil-in-place summary


+-----------------------+-------------+-------------+------------+-----------+
| | P90 | P10 | Mean | Potential |
| | | | | Oil in |
| | | | | Place |
| | | | | Volume |
+-----------------------+-------------+-------------+------------+-----------+
| Drilled (above 2950) | 1,891 | 7,422 | 4,184 | 13,000 |
| (million barrels) | | | | (P1) |
+-----------------------+-------------+-------------+------------+-----------+
| Additional | | | | 1,000 to |
| prospective | | | | 5,000 |
| resources (lower | | | | |
| Triassic and Permian | | | | |
| (million barrels) | | | | |
+-----------------------+-------------+-------------+------------+-----------+
| Total | 1,891 | 7,422 | 4,184 | 14,000 to |
| (million barrels) | | | | 18,000 |
+-----------------------+-------------+-------------+------------+-----------+


Todd Kozel, Executive Chairman of Gulf Keystone, commented:


"This report independently corroborates the world class quality of the
discoveries and provides invaluable data for our next test wells appraising
these finds. We are delighted with the results of the final DGA report
evaluating Shaikan-1 and we look forward to realizing as much of the upside
potential of this discovery as possible."


A copy of the final report is available on the Company's website at
www.gulfkeystone.com


Notes:


Discovered Petroleum initially-in-place is that quantity of petroleum that is
estimated, as of a given date, to be contained in known accumulations prior to
production.


The PRMS guidelines and reserves definitions can be found in full at the Society
of Petroleum Engineers website
http://www.spe.org/spe-app/spe/industry/....






Enquiries:


+--------------------------------------+------------------------+
| Gulf Keystone Petroleum: | +44 (0) 20 7514 1400 |
+--------------------------------------+------------------------+
| Todd Kozel, Executive Chairman | |
+--------------------------------------+------------------------+
| Ewen Ainsworth, Chief Financial | |
| Officer | |
+--------------------------------------+------------------------+
| | |
+--------------------------------------+------------------------+
| Strand Partners Limited | +44 (0)20 7409 3494 |
+--------------------------------------+------------------------+
| Simon Raggett / Rory Murphy / James | |
| Harris | |
+--------------------------------------+------------------------+
| | |
+--------------------------------------+------------------------+
| Mirabaud Securities LLP | +44 (0)20 7878 3362 |
+--------------------------------------+------------------------+
| Peter Krens | |
+--------------------------------------+------------------------+
| | |
+--------------------------------------+------------------------+
| Brunswick Group LLP | +44 (0) 20 7404 5959 |
+--------------------------------------+------------------------+
| Patrick Handley | |
+--------------------------------------+------------------------+



or visit: www.gulfkeystone.com


John Gerstenlauer, the Company's Chief Operating Officer, who has 31 years of
relevant experience within the sector meets the criteria of a qualified person
under the AIM guidance note for mining, oil and gas companies and has reviewed
and approved the technical information contained in this announcement. Mr.
Gerstenlauer is a member of the Society of Petroleum Engineers.


Notes to Editors:
* Gulf Keystone Petroleum Ltd. (AIM: GKP) ("Gulf Keystone" or the "Company") is an
independent oil and gas exploration company focused on exploration in the
Kurdistan region of Northern Iraq.
* The Company's shares have traded on the AIM market, since listing on 8 Sept
2004.
* Gulf Keystone Petroleum International ("GKPI") is a joint venture between the
Company and ETAMIC, its strategic partner in Kurdistan. The JV holds Production
Sharing Contracts ("PSC's") in four exploration blocks with a total area under
licence of 1,702 square kilometres.
* On 6 Aug 2009, the Company announced that GKPI had made a significant discovery
at the Shaikan-1 exploration well which spudded on 27 April 09. The well is
located in the Shaikan Block, situated near the city of Dihok, approximately 85
kilometres North-West of Erbil and covers an area of 283 square kilometres.
* The independent E&P consultant Dynamic Global Advisors (DGA) was appointed to
perform an independent assessment of discoveries made in the Shaikan-1 well.
Houston based DGA is an independently-owned E&P consultancy, providing advice
and services to national, institutional, and corporate clients worldwide.
* On 14 Jul 2009, the Company announced its intention to suspend investment and
pursue a sale of holdings in the HBH/RM project in Algeria in order to focus on
Kurdistan.
* Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with offices
in Erbil, Kurdistan, Algiers, Algeria and London, UK.




This information is provided by RNS
The company news service from the London Stock Exchange
END

sheee-ite
if we were leaving iraq before we aint now.....

Its Kurdistan, a Country that absolutely love the US and the UK, we protected them from Saddam in Gulf war 1 with the no fly zone.

Peakers will claim this is "just lucky", too deep, too expensive, or does not exist. Any reality based evidence to the contrary of their religion will be spontaneously discarded. GKP and DGA could find and vet a 100 billion barrel field in Western Iraq and Peakers would dismiss it.

I'd compare it to Ghawar, which was supposed to have 170 billion barrels in place. This field's P1 (mostly unlikely) is less than 10% of that.

Folks, we need to discover a couple of Ghawar's worth a decade to keep things rolling at status quo from here on in.

This is good news for the E&P company, but does nothing significant PO wise...

Quote:

Folks, we need to discover a couple of Ghawar's worth a decade to keep things rolling at status quo from here on in.

We have enough natural gas and coal to get through the transition to *sustainable nuclear power as long as we get started now.

*"sustainable" means processes that don't waste 90% of the usable fuel, don't produce long-lived waste and aren't limited to just uranium.

I thought "Jack" had already saved us?

This is their first drill... of four, they are yet to drill Sheik-Adi, Akri-Bijeel and BerBahr

" there is upside potential (P1) up to a total of 13 billion barrels of
oil in place." from the DGA report

also 6 to 14 TCF!!!

I believe that this will be a huge find when the results of these other drill sites becomes clear

Jubber: "Its Kurdistan, a Country that absolutely love the US and the UK, we protected them from Saddam in Gulf war 1 with the no fly zone."

Then we left 'em with their balls hanging in the breeze and Saddam slaughtered many of them.


http://www.kurdmedia.com/article.aspx?id....

"The first gulf war weakened Saddam regime and accidentally gave us the chance to rise up against Saddam Hussein and get control over northern Iraq. But in the final minutes, US stopped backing the Kurdish people, and let Baghdad use its forces to crash Kurdish uprising in 1991, resulted in committing atrocities by Iraqi army against Kurdish civilians and fleeing millions of people to the neighboring countries when the former regime recaptured the Northern Kurdish part of Iraq."

We wheeled and dealed with Turkey and basically turned a blind eye to them as they slaughtered Kurds in Turkey.

Please stop poluting the airwaves with this tinfoil. Don;t you know there is no more oil??? We have peaked out......

Yeah.....right.

Take this find and add it to the shallow water find in the Gulf recently and I am pretty sure we can put all those idiot peak oil people quite far in rear view mirrors.

Long - cherry red 1973 Corvette with a 1957 chevy small block in it.

Here is a better overview of Kurdistan from another Company with Jay Garner as a director, if anyone is interested. They are partnered with Niko

http://watch.bnn.ca/headline/october-200....

I just realised - no one drilled in Kurdistan.

EVER?!

So there are spots on the planet that have NOT been explored?

Hellooooo...

Ben, wrong.
It's been drilled. Here's an article from October when they halted exports.
http://www.nytimes.com/2009/10/13/world/....

18 billion barrels? At the current rate of U.S. consumption, that's less than a three year supply.

The US burns through 20.8 Million barrels per day. If this proves out to be cheap to recover and is 18 Billion barrels, that would last the US 865 Days!

Now we just have to figure out how to get it all for ourselves and then we don't have to sweat it for another 2.37 years.

...of course if we have to share it, then it is enough to supply the entire world for 207 days... so maybe we would have to come up with a plan B.

Whewt, b/c that's how it works. We find oil, we use it up. We find more oil....Not as if people are constantly looking for oil. PO is a myth created by the white man.

13 billion barrels? Wow, that's a lot. It'll last for-evahhh....!

Curby: You referred to "peak oil idiots". Not all "peak oilers" are who you think they are. May I suggest you read up on Matthew Simmons.

Randy, what happens if we find less than we need? Or does the fact that it's never happened before mean it will never happen?

Show me a strong dollar I will show you 25 dollar oil and shut this whole argument right up.

The last year that discoveries of new reserves worldwide met or exceeded the previous year was 1965.

it costs $2 a barrel to recover, lots of ex US Military on the boards of the companies out there, The Chinese paid $7.5 Billion for Addax last year in kurdistan...

Vast Exploration which "should " be sitting on the largest unexplored Oil field in the World is owned by Forbes Manhatten, the field next door is owned by Hunt Oil

Randy,

The (perceived) value of a printed piece of paper has no effect on the amount of oil in the ground. Surely you do understand that? If anything, oil being cheaper for Americans would increase the rate of depletion.

Emb, yes I understand that. There is plenty of oil. The PO crew think we'll be using oxen in 10 years. I don't.

Show me a skittle ****ting unicorn and I will show you a world that runs on fairy dust and shut this whole argument right up.

We need a PO forum on here for the loons.