Competent Person's Report Update

16 February 2021

Gulf Keystone Petroleum Ltd. (LSE: GKP)

("Gulf Keystone", "GKP" or "the Company")

Updated Independent Reserves and Resources Evaluation

Competent Person's Report reaffirms the significant production potential of the Shaikan Field

Gulf Keystone Petroleum, a leading independent operator and producer in the Kurdistan Region of Iraq, is today providing a Competent Person's Report ("CPR") update on the Shaikan Field in which it has an 80% working interest ("WI").  The CPR, an independent third-party evaluation of the Company's reserves and resources as at 31 December 2020, was prepared by ERC Equipoise ("ERCE").

Jon Harris, Gulf Keystone's Chief Executive Officer, said:

"The updated CPR demonstrates the continuing long-term strong performance of the Shaikan Field with gross 2P+2C reserves and resources volumes in line with the 2016 CPR, after adjusting for production over the period.  Prior Company estimates are reaffirmed with gross 2P+2C reserves and resources of c.800 MMstb at 31 December 2020, including over 500 MMstb of gross 2P reserves.  We have a deep understanding of the Shaikan Field that has produced over 80 MMstb to date and are pleased that the latest CPR matches our interpretation and understanding of the geological model, underlining the considerable untapped potential of the field.

We had a strong start to the year in January, which saw GKP's highest monthly average daily gross production of 44,405 bopd.  As conditions continue to improve, we look forward to resuming the 55,000 bopd expansion project and shareholder distributions."

Highlights

· The CPR incorporates significant incremental information, including an updated development plan, new wells, production data and further technical analysis, since the last CPR was prepared by ERCE in 2016.

· Gross 2P reserves + 2C contingent resources¹ of 798 MMstb² at 31 December 2020 are consistent with volumes as at 31 December 2019, adjusted principally for 2020 production.

· Gross 1P reserves increased to 240 MMstb, up 33% after adjusting for 2020 production.

· Gross 2P Jurassic reserves were revised down marginally (2%) to 505 MMstb, after adjusting for 2020 production. 

· Gross 2P Triassic and Cretaceous reserves of 47 MMstb were reclassified to gross 2C contingent resources¹, while the Field Development Plan is progressed with the Ministry of Natural Resources.

· Shaikan continues to deliver stable production with average gross production in January of 44,405 bopd, the highest monthly average to date from the field.

· The Shaikan Field has significant future production potential with a gross 1P reserves life index³ of c.15 years and a gross 2P reserves life index³ of over 31 years, assuming January 2021 production levels.

Gross reserves and resources based on the Company's estimates at 31 December 2019 and the CPR at 31 December 2020 were:

The reconciliation of changes in reserves and resources between the Company's estimates at 31 December 2019 and the CPR at 31 Decemer 2020 is as follows:

GKP's 80% net WI⁴ share of reserves and resources at 31 December 2020 were:

1.   Contingent resources volumes are classified as such because there is technical and commercial risk involved with their extraction. In particular, there may be a chance that accumulations containing contingent resources will not achieve commercial maturity. The 2C (best estimate) contingent resources presented are not risked for chance of development.

2.   Aggregated 2P+2C estimates should be used with caution as 2C contingent resources are commercially less mature than the 2P reserves.

3.   Reserves life index is calculated as gross 1P reserves or gross 2P reserves, as appropriate, divided by annualised January 2021 gross production.

4.   Net working interest reserves and resources do not represent the net entitlement resources under the terms of the PSC.

Enquiries:

 or visit: www.gulfkeystone.com

Notes to Editors:

Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq. Further information on Gulf Keystone is available on its website www.gulfkeystone.com

Disclaimer

This announcement contains certain forward-looking statements that are subject to the risks and uncertainties associated with the oil & gas exploration and production business.  These statements are made by the Company and its 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 risks and uncertainties, including both economic and business factors and/or factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy.  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.

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