Gulf Keystone Ltd Corporate Overview

Building perimeter fence at HEK-3 well site GKN-1 well – presently producing c. 850 bopd

March 2007 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.

2 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$335 million

ƒ Offices in London, 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 3 Company Overview - Capital Structure

33% Management and Top 15 Holders December 31 st 2006 % GKP Founders Gulf Keystone Petroleum Co (LLC) 40,000,000 14.52 Fidelity International (UK) 22,771,155 8.27 Directors Holdings 20,200,000 7.33 Gibca Ltd 20,000,000 7.26 Private Individuals 17,980,674 6.53 Oppenheimerfunds (US) 16,000,000 5.81 ƒ Number of common shares in Gartmore Investment Mgt 15,837,521 5.75 issue 275m with 500m authorised Artemis Investment Mgt 13,680,000 4.97 common shares Seymour PS Ellis Stockbrokers 11,809,543 4.29 Evolution Securities (MM) 10,893,578 3.95 AXA Framlington Group Ltd 10,012,750 3.63 ƒ Market Capitalisation of ca. BlackRock MLIM 9,520,200 3.46 US$335 Million (based on 63.0 Credit Suisse (MM) 8,905,956 3.23 Henderson Global Investors 7,000,000 2.54 pence as at close 12th January Morley Fund Mgt 6,024,197 2.19 2007)

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

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

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

NORTH / 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. 7 Sedimentary Basins of Algeria

Mediterranean Sea SPAIN Kechabta Madjerda Basin Basin Basin Gulf Keystone Northern Blocks Cheliff Gulf Keystone tlas ian A Basin Tell n a Atlas i ellian s HBH Concession SudT i n n i u ns T aa SE Constantine i Hodna sB i n n i Plateau u s u T a Rif Basin ea B lat Melr Rharb Basin h P hir Tr Guercif Hig ough TUNISIATUNISIA as Atl ian Chotts Basin Atlas nis - Tu MOROCCO d n / Touggourt Uplift a ra l Mi aha gh a ur S rou k sso T k Me oud Tilrhemt Telemazene u Tadla Ben o Hassi Arch D s Djorfa Saddle Nafusa High High Atla Messaoud a aouir Oued - Namous El Biod Ess Bechar Allal Oued Mya Dome Arch Boudenis Basin High Basin Er Rachidia Ouarzazate Berkine Hamra Timimoun Basin ALGERIAALGERIA Anti - Atlas Basin Basin Ougarta Chain

I A d z j GRJ figuresz to e be added Tindouf e S n r b e a Basin a n Dan Berhous a H e Mouydir i Atchan Gargaf Arch S g Saddle u h Basin b S Uplift - p n u sha Djoua r At Amguid dle Reggane Saddle ad Spur Illizi S Basin Basin

Reguibate Massif Tihemboka Murzuk A Basin Arch l Ahnet Basin 'A w a y n a t

Hoggar Massif T r o u g h

MALI

0 250 500 BasinalNIGER Areas 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 GRJ/GKN/GKS 60% - Operator

GKP has a strategic position in proven basins 10 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

Mean (un-risked) ‘high case’ 3.8 TCF High Resolution SPOT satellite image over sand 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 (Feb 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 Russia 76 bcm/yr 150 bcm/yr

60

50 Gas Reserves Available for European Pipeline 40 Market Tcm

30

20

10

0 Russia Algeria Norway Holland UK Libya Egypt Nigeria Algeria 4 bcm/yr 4 bcm/yr 12 bcm/yr 37 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

15 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) and potentially commercial Retained Areas discoveries (GRJ) Plans • Secure production licences for GKN/GKS oil discoveries

GKN-1 - Phase 1 – 1 additional Well on GKN, 1 additional OGZ-1 Trans GKN-2 -med Pipeline GKN-3 Trans Me d. Gas Pipeline GKN-4 Well on GKS, focussed 3D Seismic, gas injection GKS-3 FKN-1 GKS-2 FKN-1BIS GKS-1 - Further Phases – Dependent on Phase 1

RDL-1 H performance RTB Pipeline GRJ-1 GRJ-2 AMS-1 • Achieve Q2 2007 approval / gazetting and subsequent G K N - R a s T o u m b OP il ip e lin e BLOCK 108 RTB-8 production start-up OUM-1

RTB-3 BBA-1 RTB-5RTB-4 RTB-6 • Well test of GRJ-2 planned for Q1/Q2 2007 RTBW-1 RTB-7 Ras Toumb RTB-2 RTB-1 Facility • Potential re-application for remainder of Block 126a

ESF-1 depending on results of ongoing E&A 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 TYA-1 (GKP: 75% operator, SONATRACH: 25%) Coniacian from Aptian Play GKP 75% SH 25% RES-1 BL-1 History BOTTENA BLOCK 129 ROA-1 • Awarded April 2005 FO DDN FO-4 DDN-1 FO-3 st FO-1 FO-2 Commitments 1 Period (3 Yrs)

BTN-1 BTS-1 • 380 km 2D, 500 sq km 3D seismic (complete)

e • 1 Exploration well lin ipe P as . G ed s M an Tr DK-11 DK-13 DK-10 DK-4 DK-2 Aptian KM-1 DK-8 DK-9 DK-5/DK-5 bis Plans DK-12 DK-1 DK-3 DK-14 DK-6 Dj. Onk Exclusion Boundary Play OGZ-1 GKN-1 • Explore Turonian Coniacian play (KRM, ODS, DDN)

Trans-medGKN-2 Pipeline GKN-3 GKN-4 GKS-3 • Explore Aptian play FKN-1 GKS-2 Turonian / FKN-1BIS HEK/HCZ GKS-1 RDL-1 • Appraise HEK, HCZ oil discoveries HEK-2 Coniacian HEK-3 HCZ-1 RTB Pipeline Ras Toumb GRJ-1 GRJ-2 HEK-1 Play • Well test of HEK-3 well planned for March / April 2007 AMS-1 Facility MAN-1

G KRa N - s T o u mO b il Pip e lin e RTB-8 BLOCK 108 OUM-1 RTB-3 RTB-5RTB-4 OSD-1 RTB-6

RTBW-1 BBA-1 RTB-7

RTB-2 RTB-1 Blocks 108/128b (4,641sq km) OSD RTB (GKP: 75% operator, SONATRACH 25%)

ESF-1 BGH-1 Block 108/128b History BLOCK 128b 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 20Km • 1 Exploration and 1 Appraisal well

Bou Aroua 1 Existing 3D seismic Plans

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

‘Northern Blocks’ - substantial oil exploration and appraisal potential 17 Asset Review – Reserves/Resources Distribution

Recoverable Volumes (“Mean Case” - MM BOE) Independent Review by RPS Ltd, May 2006

35.6 70.8 KEY (21.4) x: Gross Licence Volumes (x): GKP Net Working Interest Volumes (40.5) GKN 48.3 GKS Risked (29.0) GKN/GKS: “Reserves” Exploration GRJ: “Contingent Resources” GRJ HBH “Contingent Resources” Block 129: “Contingent Resources” 35.7 (26.8) 129 Exploration: “Risked Prospective Resources” HBH

GKP Net Mean Risked (124.5) Pre BG farm in Resources : (181mmboe) (63.5) Post BG farm in

166.0

Significant hydrocarbon potential has already been identified 18 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

19 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

$100.0

$US BN 200

$80.0 150 # of # of Transactions $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. 20 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 21 Diversifying the Portfolio

Current Activities Focus areas

GKP will use Algerian business model to expand the E&P portfolio within

MENA 22 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 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 23 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 ( Subsidiary) Chief ƒ General field engineer for western Atlas Operating Officer

David ƒ Geologist, M.Sc , 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 24