GKP Shares Up Following Update

On 13 December 2013, the Court further ordered Excalibur to provide an additional security for the costs of the Defendants in the total amount of £5,612,010 by 31 December 2013, failing which the Defendants were given leave to commence proceedings for recovery of such costs and to the extent necessary, to serve proceedings out of the jurisdiction against Excalibur's funders, namely Psari Holdings Limited, Mr Adonis Lemos, BlackRobe Capital Partners LLC, BlackRobe AEO Investors I, LLC, Platinum Partners Value Arbitrage Fund LP, and Hamilton Capital LLC. The Company understands that Excalibur did not pay the additional security into Court and accordingly the Defendants have made an application under Section 51 of the Senior Courts Act 1981 against Excalibur's funders to recover their costs of these legal proceedings.

The Judgment is available to view at http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/Comm/2013/2767.html&query=excalibur&method=boolean.

Move to the Main Market

Work is underway on the Company's proposed move from AIM to the Standard Segment of the Official List and we continue to work with Deutsche Bank AG, London Branch, the Company's exclusive corporate advisers in connection with the proposed move. The Company is in the advanced stages of finalising the relevant documents including the Listing Prospectus, the Competent Person's Report ("CPR"), and the required financial reports.

After the successful resolution of the litigation against Excalibur Ventures LLC, as detailed in the Company's announcement of 16 December 2013, the Board's and its corporate advisers' current expectation is for the admission to be achieved as soon as practicable in 2014.

Todd Kozel (pictured), Gulf Keystone's Chief Executive Officer commented:

"Significant progress has been made since the Shaikan Field Development Plan was approved in June 2013. We began commercial production 30 days after its approval and now the first cargo of Shaikan crude is being sold to the international market. As we are increasing Shaikan production, we are developing a flexible marketing strategy in co-operation with the Ministry of Natural Resources of the Kurdistan Regional Government to achieve the best price for our crude.

"Our short-term focus is on the trucking export route via Turkey, while we are working on getting access to the regional pipeline network. Ours is a constant evolution: we are growing as a company and we are proud to operate in the Kurdistan Region of Iraq."

(Source: Gulf Keystone Petroleum, Yahoo!)