GKP Shares Up Following Update

Shaikan Field Development Plan - Phase 1

During Phase 1 of the Shaikan development, the Company will seek to achieve 100,000 bopd of production. As set out in the FDP, the Company will be undertaking an active development drilling campaign as well as installing additional production facilities.

The Shaikan field is expected to be connected to the main export pipeline from the Kurdistan Region of Iraq to Turkey, which was finalised in late 2013. A review of the FDP will include Phase 2 Cretaceous, Triassic and, potentially, Permian development.

A key element of the FDP is the commencement of a sour gas injection project. Shaikan-8 was completed as the first sour gas reinjection well and bids have been tendered for gas compressing equipment required to increase plant production capacity, which is subject to well performance and emissions constraints, from the near-term target of 40,000 bopd to the Phase 1 target of 100,000 bopd. The sour gas injection project is expected to be finalised in 2015.

Financing decisions in order to fund the Phase 1 activities will be made in conjunction with anticipated steady oil production and sales from PF-1 and PF-2 in 2014.

Exploration & Appraisal

Shaikan (75% working interest; Operator)

Drilling of the Shaikan-7 deep exploration well is continuing in the Jurassic formation, after the top drive of the Weatherford 319 rig had to be replaced. The well is currently drilling 17 ½" hole below 2,300 metres in the Butmah reservoir. Shaikan-7 will drill into the Triassic and is then expected to penetrate the Permian with a potential to add to already discovered resources, and first results are expected in Q2 2014.

Sheikh Adi (80% working interest; Operator)

The first well to appraise the Sheikh Adi discovery spudded in December 2013. Sheikh Adi-3 is being drilled with the Weatherford 842 rig to target the Jurassic and Triassic with an additional aim to test the potential connection between the Sheikh Adi and Shaikan fields. The well is currently operating below 1,000 metres in the Cretaceous.