Gulf Keystone Petroleum Ltd

Corporate Overview

Building perimeter fence at HEK-3 well site GKN-1 well – presently producing c. 850 bopd
Well flowed 1,040 bopd on workover

1
Disclaimer

This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or
subscribe for any securities in Gulf Keystone Petroleum Limited (“GKP”), nor shall it or any part of it form the
basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or
commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or
opinions contained in this presentation or on any other document or oral statement or on the completeness,
accuracy or fairness of any such information and/or opinions. No undertaking, representation, warranty or
other assurance, express or implied, is made or given by or on behalf of GKP or any of its respective
directors, employees or advisers, as to the accuracy or completeness of the information or opinions contained
in this presentation, and (save in the case of fraud) no responsibility or liability is accepted by any of them for
any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise
contained or referred to in this presentation.

The slides and the accompanying verbal presentation are confidential and the slides are being supplied to you
solely for your information and may not be reproduced or distributed to any other person or published, in
whole or in part, for any person.

The slides contain forward-looking statements, including in relation to GKP’s proposed strategy, plans and
objectives. These forward looking statements speak only at the date of this presentation. Such forward
looking statements involve known and unknown risks, uncertainties and other important factors beyond the
control of GKP that could cause the actual performance or achievements of GKP to be materially different
from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements
and GKP accepts no obligation to disseminate any updates or revisions to such forward-looking statements.

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Corporate Overview

ƒ Founded by UAE, Kuwaiti and US private equity

ƒ Incorporated in Bermuda in 2001

ƒ Listed on the AIM Market of the London Stock Exchange in 2004

ƒ Current Market Capitalisation: US$386 million

ƒ Offices in London, Algiers and Hassi Massaoud

Present shareholder structure:

ƒ Founders and Management: ca. 33.0%
ƒ UK Institutions and UK private investors: ca. 63.0%
ƒ Others: ca. 4.0%

Gulf Keystone is an independent oil and gas company

operating in the Republic of Algeria
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Company Overview - Capital Structure

28th February 33% Management and

Top 15 Holders 2007 % GKP
Founders
Gulf Keystone Petroleum Co (LLC) 40,000,000 14.45

Directors Holdings 20,200,000 7.3

Gibca Ltd 20,000,000 7.23

Fidelity International (UK) 18,990,169 6.86

Private Individuals 18,969,364 6.85

ƒ Number of common shares in
Oppenheimerfunds (US) 17,000,000 6.14
issue 276.7m with 500m
Gartmore Investment Mgt 15,565,171 5.62
authorised common shares
Artemis Investment Mgt 13,680,000 4.94

Evolution Securities (MM) 10,128,139 3.66

AXA Framlington Group Ltd 10,012,750 3.62 ƒ Market Capitalisation of ca.

Credit Suisse (MM) 9,603,769 3.47 US$386 Million (based on 69.75
BlackRock MLIM 9,520,200 3.44 pence as at close 26th April 2007)
Williams de Broe 7,661,406 2.77

Barclays Private Clients 7,481,764 2.7

Henderson Global Investors 7,000,000 2.53

GKP has strong management and institutional shareholder base 4

Company Overview – Management Team

Highly Experienced Commercial and Operational Management Team,

Non Executive Directors

Roger Parsons (2)

Sheikh Sultan Al-Qassimi (1) (2)
Chairman

Todd Kozel (1) (2) Bill Guest (2)

Chief Executive Officer President

Executive Team

David
(2) Iain Patrick Ali Al Qabandi (1) Ibrahim
Jon Cooper Mackertich
Director E.V.P. Alkhaldi (1)
Finance E.V.P.
Commercial/ Business Chief Operating
Director Exploration/
Legal Affairs Development Officer
Technical

(1) Original Founder (2) Board of GKP Ltd

GKP’s Management enhanced to take on next Phase of Growth 5

Executive Summary

NORTH AFRICA / MIDDLE EAST EXPLORATION PLAY

Focus on proven hydrocarbon basins with material upside

Algeria – Portfolio Development

ƒ Block 126a awarded in 1st International Bid Round 2001
ƒ Awarded 6 additional blocks in 5th International Bid Round 2005
ƒ Awarded 2 further onshore blocks through direct negotiation 2005

Regional Competitive Advantage at the Point of Access

ƒ Excellent regional contacts through senior management and original
Arabian Gulf Investors
ƒ Strong historic relationship with Algerian government authorities -
SONATRACH

Active Portfolio Management

ƒ BG Group introduced as a strategic partner in Hassi Ba Hamou

Gulf Keystone has material exposure to high impact reserves 6

Why Algeria?

ƒ 60% of country’s total area occupied by sedimentary basins.

ƒ Only 24% of the area has been licensed.

ƒ Strategically positioned as major, and growing, supplier of energy to world’s

largest energy markets and is major exporter of gas and LNG.

ƒ Excellent Competitive Landscape:

ƒ Only 35 foreign oil companies in sector alongside SONATRACH.

ƒ Only 3 “smaller” (<$500mm Market Cap) independents.

ƒ Significant barriers to entry for new smaller independents.

ƒ Benign operating environment, good access to market

World class oil and gas province, still relatively under-explored.

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Sedimentary Basins of Algeria
Mediterranean Sea
SPAIN
Madjerda Basin
Basin
Kechabta
Basin Gulf Keystone
Northern Blocks
Gulf Keystone
Cheliff
n Atlas
Basin Tellia
HBH Concession

is a sian
n Atlas
SudTellia

Tun Tuni
sin sin
Ba Bia n
Hodna SE Constantine
Plateau
Rif Basin u
tea Melrhir
Rharb Basin h Pla Trough
Guercif Hig TUNISIA
TUNISIA
s
Atla
s ian
tla
nis Chotts Basin
u
-A

MOROCCO n/ T Touggourt Uplift

ara
id
ala

Sa h ugh
M

s our Tro
Mes
Doukk

e n oud Tilrhemt Telemazene

Tadla B Hassi Arch Nafusa High
Djorfa Saddle
High Atlas Messaoud

ouira Oued - Namous El Biod

Essa Bechar Allal Oued Mya
Basin Dome Basin Arch
Boudenis High
Er Rachidia
Ouarzazate
Berkine Hamra
Timimoun Basin ALGERIA
ALGERIA Basin
Anti - Atlas Basin
Ougarta Chain

GRJ figures to be addedAz LIBYA

Idje
Tindouf z en
Sb e
Basin

rane
Dan Berhous a a Hi Mouydir Gargaf Arch
gh Atchan
Saddle Su Basin
b Uplift
-

Spu
han
Djoua Amguid Ats le
d

r
Reggane Saddle Spur Illizi Sa d
Basin
Basin

Reguibate Massif Tihemboka Murzuk

Arch Basin

Al
Ahnet Basin

'A
wa
yn
at
Hoggar Massif

Tr
ou
gh
MALI

0
0 250
250 500
500
Basinal Areas
NIGER
MAURITANIA
Km
Km

Source : SONATRACH
8
Algeria – Current Concessions

Northern Blocks

HBH

Significant
areas within SH Operated Blocks
Algeria remain Foreign Oil Company
unlicensed Operated Blocks
Source : IHS Energy
9
Asset Review – Algerian Portfolio

ƒ Major acreage footprint in Oil

prone Constantine Basin and gas
prone Allal Dome - close to
existing infrastructure
ƒ 27,000sq km under licence in
proven hydrocarbon bearing
basins – oil and/or gas
discoveries on each block

ƒ GK majority working interest

holder in every block
HBH 38.25%
Block 129 75% - Operator
108/128 75% - Operator
GKN/GKS 60% - Operator

GKP has a strategic position in proven basins

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Algeria – HBH Concession

ƒ Large (18,380 km2) gas prone concession

– under-explored

ƒ Significant gas discovery (HBH) with

‘Contingent’ Recoverable Resources of
995 BCF and ‘high’ estimate of 1.7 TCF

ƒ Significant exploration potential

20Km Mean (un-risked) ‘mid case’ 1.9 TCF

High Resolution SPOT satellite image over sand

Mean (un-risked) ‘high case’ 3.8 TCF
dunes in Hassi Ba Hamou Block – Central Algeria

HBH – Proven Gas field & significant exploration potential 11

HBH Asset

Blocks 317b, 322b, 347b, 348 and 349 History

ƒ Awarded April 2005, Presidential
Decree August 2005
ƒ BG farms-in, August 2006 as operator

HBH ƒ BG deal completed January 2007

Commitments : 1st Period (3yrs):
Planned
2D & 3D
Seismic (2006/2007)
2000 km 2D Seismic (started Jan 2007)
500 km ² 3D Seismic (May 2007)
Drilling (Q4 2007 onwards)
6 exploration and appraisal wells
HBH Blocks WI
GKP 38.25% ƒ Increased programme to US$57 million
BG 36.75% reflects the company’s view of the
SH 25%
20Km significant additional hydrocarbon
prospectivity of the HBH concession and
surrounding area

1 TCF recoverable reserves over 3.5 TCF exploration upside 12

HBH - BG Group Farm In

ƒ There was significant interest in Gulf Keystone’s HBH farm out process
from companies looking to supply European gas market
ƒ The introduction of BG Group as strategic partner allows GKP and
SONATRACH to accelerate the exploration, appraisal and
commercialisation of HBH gas
ƒ BG recently signed an MOU with SONATRACH to co-operate across entire
value chain
ƒ BG’s rationale is a part of its larger LNG strategy to supply both US and
European markets
ƒ BG has acquired 49% of Gulf Keystone’s interest in the HBH concession
ƒ In addition, Gulf Keystone and BG have established an AMI, which will
look at the possibility of further co-operation opportunities for gas
exploration, appraisal and development projects within Algeria
ƒ Commercial terms of transaction required by Algerian authorities to be
confidential
ƒ The Presidential Decree approving the deal was published in the gazette
dated 13th December 2006 and the deal completed on 12th January 2007

BG farm in demonstrates potential of the HBH portfolio 13

Asset Review – Algeria Gas in context Source: IEA, Merrill Lynch, BP Statistical Review

Norway 60
Russia
76 bcm/yr
150 bcm/yr
50

40
Gas Reserves Available
for European Pipeline

Tcm
30 Market

20

10

0
Russia Algeria Norway Holland UK
Libya Egypt
Nigeria Algeria
4 bcm/yr 4 bcm/yr
37 bcm/yr
12 bcm/yr • Algeria is the 3rd largest gas exporter to
Europe
• 2nd largest proven resource base available to
European gas market
• European gas demand continues to grow with
indigenous production in permanent decline • 2 dedicated pipelines into southern Europe
and 10 mton LNG capacity
• 100bcm growth between 2005 and 2010 from
582bcm to 678bcm • SONATRACH major push to increase
European market share to 85bcm by 2010

Algeria - an under utilised resource base for the European Gas market 14
Gulf Keystone – Northern Blocks

ƒ Constantine Basin – relatively under-

explored with little application of
focused technology
ƒ Main phases of exploration - 1950’s,
1980’
ƒ Range of different play types from
fractured carbonates to ‘conventional’
clastics
ƒ No wells drilled using 3D seismic
data
ƒ No horizontal wells or fracture
stimulation techniques undertaken
ƒ Phase 1 production (Block 126a)
expected Q2-Q3 2007
ƒ Active exploration / appraisal
programme over the next 36 months

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The Next Phase – Obtaining Production
20Km
FERKANE
BLOCK126a

Block 126a
Ferkane (Block 126a)
GKP 60%
SH 40% (GKP 60% Operator, SONATRACH 40%)
History
• Awarded 2001
• Encountered significant oil potential but productivity
challenges

GKN, GKS & GRJ • Commercial (GKN, GKS)

Retained Areas Plans
• Secure production licences for GKN/GKS oil discoveries
- Phase 1 – 1 additional Well on GKN, 1 additional
OGZ-1
Well on GKS, focussed 3D Seismic, gas injection
Trans-med Pip
Trans Med.
eline GKN-1

- Further Phases – Dependent on Phase 1

Gas Pipeline
GKN-2
GKN-3
GKN-4
GKS-3

performance
FKN-1
GKS-2
FKN-1BIS
GKS-1 RDL-1

• Achieve Q2 2007 approval / gazetting and subsequent

H

RTB Pipeline GRJ-1 GRJ-2

AMS-1
production start-up
li P p
O
To u m bil e
i en

RTB-8
Ra s
-
G KN

OUM-1
BLOCK 108
RTB-3
RTB-5
RTB-4
RTB-6

RTBW-1 BBA-1 RTB-7

RTB-2 RTB-1

Ras Toumb
Facility
ESF-1
BGH-1

BLOCK 128b

Commercial oil discoveries leading to early production 16

The Next Phase – Expanding Opportunities
Block 129 (4,368km²)
Gafsa Fault separates Turonian / Block 129
GKP 75%
TYA-1 (GKP: 75% operator, SONATRACH: 25%)
Coniacian from Aptian Play SH 25%
RES-1
History
BOTTENA BL-1

BLOCK 129

FO
ROA-1
• Awarded April 2005
DDN
Commitments 1st Period (3 Yrs)
FO-4

DDN-1 FO-3

FO-1 FO-2

BTN-1

BTS-1
• 380 km 2D, 500 sq km 3D seismic (complete)
as
Pi
pe
lin
e
• 1 Exploration well
.G
ed
sM
an
Tr

Aptian Plans
DK-11
DK-13
DK-10
DK-4
DK-2
DK-9

Play
KM-1 DK-8
DK-5/DK-5 bis
DK-12

• Explore Turonian Coniacian play (KRM, ODS, DDN)

DK-1 DK-3
Dj. Onk Exclusion Boundary
DK-14 DK-6
OGZ-1
GKN-1
Trans-med Pipeline
• Explore Aptian play
GKN-2
GKN-3
GKN-4
GKS-3
FKN-1

HEK/HCZ Turonian /
• Appraise HEK, HCZ oil discoveries
GKS-2
FKN-1BIS
GKS-1 RDL-1

HCZ-1
HEK-3
HEK-2 Coniacian
Ras Toumb
RTB Pipeline GRJ-1 GRJ-2 HEK-1 Play • Well test HEK-3 flowed at stabilised rate 1,040bopd
Facility AMS-1
MAN-1
i e
O li Pip eln
Tou m b

RTB-8
G K N - R as

OUM-1
BLOCK 108
RTB-3

Blocks 108/128b (4,641sq km)

RTB-5
RTB-4 OSD-1
RTB-6

RTBW-1 BBA-1 RTB-7

RTB-2 RTB-1

OSD
RTB (GKP: 75% operator, SONATRACH 25%)
ESF-1
BGH-1

BLOCK 128b
Block 108/128b History
Ben Guecha
GKP 75%
SH 25% • Awarded through bi-lateral negotiation April 2005
• Gazetted 13th December 2006
HBS-1

Commitments 1st Period ( 3 Yrs)

Turonian / Coniacian Play
gives way to Triassic • 200 Km 2D seismic, 100 sq km 3D (complete)
prospects towards the South
• 1 Exploration and 1 Appraisal well
20Km
Bou Aroua 1

Plans
Existing 3D seismic
• Appraise Ras Toumb oil Field
Possible 2D acquisition
Algeria Tunisia • Explore Ras Toumb & Douleb prospectivity in Block 108
• Explore additional prospectivity in Block 128

‘Northern Blocks’ - substantial oil exploration and appraisal potential 17

Competitive Strengths

Strategic Position – Algeria

ƒ Significant acreage footprint
ƒ Operatorship/Infrastructure
ƒ Majority working interest in all licences
ƒ Strong Strategic Partner
ƒ Oil and Gas discoveries with major
exploration potential

COMPETITIVE
Access to New Business STRENGTHS Regional Experience
ƒ Barriers to entry for new players ƒ Middle East & North Africa
in Algeria
ƒ OECD
ƒ Founder/Shareholder ƒ N.W. Europe
relationships in Algeria and MENA
ƒ United States
ƒ Industry reputation/network
ƒ Other International
ƒ Highly experienced Management and
Technical Team

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International Market Overview : Past transactional Activity
Global Upstream M&A Activity by Region - Dollar Value Global Upstream M&A Activity by Region - # of Transactions
400
$180.0

$160.0 350

$140.0 300

$120.0
250

# of Transactions
$US BN

$100.0
200

$80.0
150
$60.0
100
$40.0

50
$20.0

0
$0.0
2000 2001 2002 2003 2004 2005 2006 YTD 2000 2001 2002 2003 2004 2005 2006 YTD
Canada USA Africa Canada USA Africa
Europe Asia South and Central America Europe Asia South and Central America
Australia Multi-Region Russia Australia Multi-Region Russia
North Sea Middle East
North Sea Middle East

ƒ Historically, M&A and A&D activity in MENA has been very limited.

ƒ Massive potential for portfolio rationalisation and improved portfolio

efficiency across the upstream sector within MENA.

ƒ Potential for Independents and the Service Sector to enter into

innovative commercial arrangements with major IOC’s and state entities
in respect of “Non-Material” assets.
19
Gulf Keystone Strategy
Current Status
• Strategic “footprint” in Algeria
• Strong financial position
• Major opportunity set in MENA

Strategy (Market Drivers)

• Increased Materiality / “Critical Mass”
• Increased Market Liquidity
• Selectively diversification

“Organic Growth” “Structural Growth”

• Major Algerian E&A program / Early Cash Flow A&D / M&A

• Further build Algerian Portfolio • Exploit MENA asset “Food Chain”
• Exploit niche strengths to access 2-3 other • Exploit consolidation of E&P sector
MENA countries
20
Diversifying the Portfolio

Current Activities
Focus areas

GKP will use Algerian business model to expand the E&P portfolio within
MENA 21
Appendix – Executive Management Team

Todd Kozel ƒ Co-Founded Gulf Keystone UAE in 2000

CEO ƒ 20 Years US / International E&P Management
ƒ Texas Keystone 1995 – 2004
ƒ Co-Founded Falcon Drilling

Bill Guest ƒ Geologist by background

President ƒ 30 Years experience in international oil and gas industry
ƒ Royal Dutch Shell 1975 - 1989
ƒ Technical Director Monument Oil and Gas 1990 -1999

Iain Patrick ƒ Lawyer by background

Commercial ƒ 25 years experience in the international oil and gas industry
and Legal ƒ Commercial director Monument Oil and Gas 1990 – 1999
Director

Dr Jon Cooper ƒ Qualified Accountant by background

Finance ƒ Experienced finance professional focussing on oil and gas
Director industry
ƒ 9 years oil and gas corporate finance with DrKW

Highly Experienced Management Team 22

Appendix – Executive Management Team

Ali Al Qabandi ƒ Extensive experience in the Kuwait oil industry

(Founder) ƒ Numerous executive positions and committee directorships for the
V.P. Business Kuwait Oil Company
Development

Ibrahim Al-
Khaldi (Co- ƒ Business development officer for MENA for Baker Atlas
Founder) ƒ (Baker Hughes Subsidiary)
Chief ƒ General field engineer for western Atlas
Operating
Officer

David ƒ Geologist, M.Sc Petroleum Geology, MBA

Mackertich ƒ UK DTI 1988 to 1991, Amerada Hess 1991 to 2003
E.V.P. ƒ 19 years International Exploration & Business Development
Exploration
& Technical

Extensive technical, commercial & international experience 23