AGM Statement

Gulfsands Petroleum PLC
28 June 2007

Annual General Meeting



London, 28th June, 2007:  Gulfsands Petroleum plc ('Gulfsands', the 'Group' or
the 'Company' - AIM: GPX), the oil and gas production, exploration and
development company with activities in the U.S.A., Syria and Iraq will hold its
Annual General Meeting at 11am today, at which the following statement will be
made by Andrew West, Chairman of Gulfsands:


'Gulfsands' achievements in the USA and Syria in 2006 and during the first half
of 2007 have provided the Company with a very positive platform for the future.
Financially, the Company experienced increases in its profit, turnover, cash
flow from operations, fixed assets, net assets and shareholders' funds during
2006 and subsequent to year-end announced a multi-zone oil and gas discovery at
Khurbet East in Block 26, Syria.


The Company commenced drilling the Khurbet East 1 ('KHE-1') exploration well in
Block 26, Syria on 19 February 2007 and this represented the third well of a
four well drilling commitment on the block. KHE-1 encountered four significant
hydrocarbon bearing reservoirs.


The deepest reservoir Triassic Kurrachine Dolomite flowed oil to the surface on
drill stem testing at a rate of approximately 478 barrels of oil per day 
('bopd') with a gas to oil ratio ('GOR') averaging approximately 2000 standard
cubic feet per barrel ('scf/bbl'). Preliminary assessment of the oil gravity is
35 degrees API. Logged pay appears relatively large but is uncertain due to poor
well-bore conditions at this depth.

The Triassic Butmah Formation contained approximately 16 metres of net
hydrocarbon pay based on wireline log interpretation, reservoir pressures and a
natural gas fluid sample recovery.

The Cretaceous Massive Formation contains approximately 22 metres of net oil pay
over a 25 metre gross interval based on wireline log interpretation, reservoir
pressures and fluid sample recovery. The oil in this reservoir has an API
gravity of approximately 24 degrees, based on PVT analysis.

The Tertiary Chilou 'B' Formation contained approximately 26 metres of net oil
pay, based on wireline log interpretation.

On 14 June the Company spudded the fourth well on Block 26, the KHE-2 appraisal
well. This well is designed to provide further information of the lateral
extent and continuity of the Cretaceous Massive and Tertiary Chilou 'B'
Formations. The results of this well are expected in August.

The Group's USA reserves increased significantly during 2006 primarily as a
result of extensive workovers and recompletions of existing wells in the Gulf of
Mexico which resulted in proved and probable reserves totaling 44.6 BCFGE (7.4
MMBOE) as of 31 December 2006. These reserve additions replaced 389% of the
Group's 2006 produced oil and gas volumes. Also significant to USA operations
was the restoration of production to pre-storm levels of approximately 3,000
boepd by the end of 2006.

The Group continues to make progress in its discussions with the Iraq Oil
Ministry on the Maysan Gas Project, as well as other business initiatives in
Iraq.

The Board were also very pleased to recently welcome two significant new Syrian
shareholders to the Company, as announced on 26 June 2007. The £11.6m of new
funding secured for the Company as a result of this investment will assist the
Company to accelerate its activities in Syria, including the evaluation of the
future development of the recent oil and gas discovery at Khurbet East.

The Board believes that the outlook for the Company remains strong and our
current activities in Syria, USA and Iraq should provide significant potential
for creating further value for Gulfsands and its shareholders. The Board is
looking forward to another exciting year as the Company appraises its recent oil
and gas discovery in Syria and further progresses its initiatives in Iraq.'

The Board will also make a presentation to shareholders on the Khurbet East oil
and gas discovery at the Annual General Meeting. This presentation can be viewed
on the Company's website at www.gulfsands.net.

NB: This release has been approved by Jason Oden, Gulfsands Exploration Manager,
who has a Bachelor of Science degree in Geophysics with 22 years of experience
in petroleum exploration and management and is registered as a Professional
Geophysicist. Mr. Oden has consented to the inclusion of the material in the
form and context in which it appears.



ABOUT GULFSANDS:



Gulf of Mexico, USA

The Company owns interests in 54 offshore blocks comprising approximately
193,000 gross acres which includes numerous producing oil and gas fields
offshore Texas and Louisiana with proved and probable recoverable reserves net
to Gulfsands at 31 December 2006 of 41.5 BCFGE (6.9 MMBOE), consisting of 27.3
BCFG and 2.36 MMBO.



Onshore USA

Gulfsands owns interests in two oil and gas fields onshore Texas, USA (98.5%
working interest in Emily Hawes Field and 37.5% working interest in Barb Mag
Field) with proved and probable recoverable reserves net to Gulfsands at 31
December 2006 of 3.1 BCFGE (0.5 MMBOE), consisting of 2.8 BCFG and 57,000
barrels of oil.



Syria

Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria. Block 26 covers 11,000 square kilometres and encompasses existing fields
which currently produce over 100,000 barrels of oil per day. These fields are
operated by third parties including the Syria Petroleum Company.



Iraq

Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry
of Oil in Iraq for the Maysan Gas Project in Southern Iraq and following
completion of a feasibility study on the project is negotiating details of
definitive contracts for this regionally important development. The project will
gather process and transmit natural gas that is currently a waste by-product of
oil production and as a result of the present practice of gas flaring,
contributes to significant environmental damage in the region.

Certain statements included herein constitute 'forward-looking statements'
within the meaning of applicable securities legislation. These forward-looking
statements are based on certain assumptions made by Gulfsands and as such are
not a guarantee of future performance. Actual results could differ materially
from those expressed or implied in such forward-looking statements due to
factors such as general economic and market conditions, increased costs of
production or a decline in oil and gas prices. Gulfsands is under no obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable laws.

For further information, including recent investor presentations, please refer
to the Company's website www.gulfsands.net or contact:




Gulfsands Petroleum (Houston)                                + 1-713-626-9564
John Dorrier, Chief Executive Officer
David DeCort, Chief Financial Officer

Gulfsands Petroleum (London)                                 020-7182-4016
Kenneth Judge, Director of Corporate Development             07733-001-002

College Hill (London)                                        020-7457-2020
Nick Elwes
Paddy Blewer

Teather & Greenwood (London)                                 020-7426-9000
Tom Hulme (Corporate Finance)
Tanya Clarke (Specialist Sales)





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