AGM Statement

Gulfsands Petroleum PLC
05 August 2005

5 August 2005



Gulfsands Petroleum PLC
('Gulfsands' or 'the Group')



Annual General Meeting



Gulfsands Petroleum PLC is an oil and gas exploration, development and
production company with activities in the USA, Syria and Iraq.



The following comments were made by Gulfsands' Chairman, John Dorrier, at the
Company's Annual General Meeting, held at 11.00am today:



'Gulfsands has made good progress in the four months since admission to AIM.



In that time we have drilled 4 exploration wells in the Gulf of Mexico, three of
which have been successful new gas discoveries.  The impact of these discoveries
has resulted in new net reserves additions to Northstar Gulfsands LLC, a
subsidiary company owned 52.6% by Gulfsands, of between 3 - 6 billion cubic feet
of natural gas (bcfg).  All three successful wells should be in production
before the end of the year.  Additionally we have added 3.3 bcfg of net reserves
to Northstar Gulfsands LLC from recompletions and workovers in the Gulf of
Mexico since the beginning of the year.



In Syria, we increased our interest in Block 26 from 20% to 50% and took over
operatorship.  We have since signed a contract with an experienced seismic
acquisition company to conduct a 1,170 km 2D seismic which is due to commence
this month.



In June, we announced that we had increased our interest in the Misan Gas
Project in Iraq to 100%, from 85%.  Later that month, we hosted a series of
meetings in London with a delegation from the Iraqi Oil Ministry.  The meetings
went well and we are in discussions with the Iraqi Oil Ministry regarding the
terms and an execution timetable for a definitive contract for the Misan Gas
Project.



Last year, the average daily net working interest production for Northstar
Gulfsands, which we own 52.6% of, increased from less than 1,000 barrels of oil
equivalent per day (boepd) in 2003 to between 5,000 and 6,000 boepd at the year
end.  This helped Gulfsands' cash flow from operating activities to increase to
$14.8 million.  Proved and probable reserves within Northstar Gulfsands
increased significantly to 4.7 million barrels of oil and 29.2 billion cubic
feet of natural gas as of 1 November 2004.



It has been a very active and successful year for Gulfsands, resulting in
significant increase in oil and gas reserves, turnover of $33 million and a net
profit for the year.  In addition, the Group's activities in the Gulf of Mexico,
Syria and Iraq continue to provide significant potential for expansion during
2005 and beyond.'




Enquiries:


Gulfsands Petroleum (Houston)                                713-626-9564
David DeCort, Chief Financial Officer

College Hill (London)                                        020-7457-2020
Ben Brewerton / Jim Joseph

Seymour Pierce (London)                                      020-7107-8000
Richard Redmayne
Jonathan Wright



Note to Editors



•         Gulf of Mexico, USA

The Group has a 52.6% interest in Northstar Gulfsands, which owns interests in
39 producing oil and gas fields offshore Texas and Louisiana and operates 8 of
those fields. Northstar Gulfsands has proved and probable reserves of 4.7 mmbbls
of oil and some 29.2 bcf of gas as of 1 November 2004.



•         Syria

In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.
The block covers 11,000 sq kms and surrounds areas which currently produce over
100,000 bopd from existing fields.  The Group has contracted for the acquisition
of an extensive 2D seismic programme during the summer of 2005 and the drilling
of the first well during the first quarter of 2006. Gulfsands has identified 27
exploitation and exploration prospects and leads with mean resources potential
of 1 billion barrels of recoverable oil.



•         Iraq

Gulfsands has recently signed a Memorandum of Understanding with the Ministry of
Oil in Iraq for the Misan Gas Project in Southern Iraq and is currently
negotiating the definitive contract for the project.  The project will gather,
process and transmit natural gas that is currently a waste by-product of oil
production in the region and will end the environmentally damaging practice of
gas flaring. Gulfsands has completed a feasibility study and is conducting
further technical work and commercial discussions with the Iraq Oil Ministry.



•         Onshore USA

Gulfsands operates onshore USA through its subsidiary company Darcy Energy LLC.
   At the Emily Hawes field, which has previously produced approximately 1.7 bcf
of natural gas before being shut-in, gas production is scheduled to commence in
the summer of 2005.  The first well in the Barb Mag oil field commenced drilling
in early July 2005.  Darcy Energy has a 25% and 37.5% working interest in these
fields respectively.


                      This information is provided by RNS
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