Gulf Keystone Petroleum Ltd has completed a placing (the "Placing") of 75,600,000 new common shares of $0.01 (the "Placing Shares") at a placing price of 9p per share (the "Placing Price") raising gross proceeds of approximately £6.8 million ($11.30 million). These shares were placed by the Company and brokers Equest Partners Limited with existing and new shareholders.

Together with the Company’s existing cash balances the Placing proceeds will be used to fund the ongoing exploration and drilling activities in the Kurdistan region of Iraq. Specifically, the Shaikan-1 well (75% Gulf Keystone Petroleum International Limited) which is currently drilling and which will then be followed by the Bijeel-1 well on the MOL operated Akri-bijeel block (20% Gulf Keystone Petroleum International Limited).

Application has been made for the Placing and award Shares to be admitted to trading on AIM and dealings are expected to commence on 6 August 2009. Following the Placing there will be 478,491,326 common shares of $0.01 in issue.

Todd Kozel, Executive Chairman of Gulf Keystone, said, “These are exciting and dynamic times at Gulf Keystone as we focus all our energies on our exploration operations in Kurdistan where we believe we have significant upside potential. Recent events such as the acquisition of two additional exploration blocks, strong oil shows above our main targets in the Shaikan-1 well, excellent progress on oil exports and oil sales outside Kurdistan as well as the constantly expanding infrastructure and excellent working relationship with the KRG, only serve to strengthen my belief that Gulf Keystone has chosen well in deciding to anchor our future in Kurdistan.”

Tags: Gulf Keystone Petroleum