Gulf Keystone Acknowledges Recent Share Price Movement

The Board of Gulf Keystone noted the recent share price movement.

The Company announced that it has received an approach and is currently in discussions that may or may not lead to an offer being made for the whole of the issued and to be issued share capital of the Company. The indicative offer price is 78 pence per issued and to be issued common share of Gulf Keystone. Although the proposed transaction terms are still subject to final documentation and final board approvals, the offer price and other key terms of the transaction have been reviewed by the Company's and the offeror's boards.

There can be no certainty that final agreement will be reached and an offer made, completion of any transaction will be subject to the approval of the relevant Algerian authorities.

A further announcement will be made in due course.