Explorer Gulf Keystone Petroleum is not in talks with U.S. oil major Exxon Mobil Corp about a 7 billion pounds ($10.9 billion) sale of the Kurdistan-focused group, a source familiar with the company's thinking said.

The Independent on Sunday newspaper reported that Exxon is considering making an estimated 800 pence per share bid for Gulf Keystone, and that the London-listed group's board discussed an approach a fortnight ago.

(Reporting by Tom Bergin; Editing by David Cowell)