Gulf Keystone Petroleum Ltd (GUKYF)

[JD400]

Shaikan Payment Update



Gulf Keystone Petroleum is pleased to announce that a gross payment of $15 million has been received from the Kurdistan Regional Government ("KRG") for Shaikan crude oil exports in March 2016.



The payment, which follows the bilateral agreement between Gulf Keystone and the KRG's Ministry of Natural Resources ("MNR") of 16 March 2016, comprises the Company's monthly contractual revenue entitlement under the Shaikan Production Sharing Contract for crude oil exports in March 2016 of $5.5 million gross ($4.3 million net to Gulf Keystone), $0.6 million gross ($0.4 million net) towards the recovery of outstanding entitlements for past deliveries and $8.9 million towards the recovery of Gulf Keystone's past costs associated with the Shaikan Government Participation Option.



Following receipt of the payment, the Company's current cash position is $69.5 million.