Appointment

Gulfsands Petroleum PLC 25 July 2006 25 July 2006 Gulfsands Petroleum plc ('Gulfsands' or 'the Company') Gulfsands Appoints Andrew West as Non-Executive Chairman Gulfsands Petroleum plc (symbol GPX), the AIM listed oil and gas exploration, development and production company with activities in the USA, Syria and Iraq, is pleased to report that the Company has appointed Mr. Andrew West, one of Gulfsands' current non-executive directors, as non-executive Chairman of the Board. Effective today, Andrew West was appointed as the non-executive Chairman of the Board. Mr. West brings a high level of experience from his career as an investment banker and former Chairman of Sibir Energy PLC. Andrew West (48), a British subject and resident, is an investment banker with nearly twenty-five years experience in London and New York. During his early career he worked from 1981 to 1985 as a Vice President of Smith Barney & Co., and from 1985 to 1990 as an Executive Director of Lehman Brothers Limited, specializing in mergers and acquisitions. From 1990 to 1997 Mr. West was a Director of Guinness Mahon & Co. Limited and a Managing Director of its Corporate Finance Division and from 1997 to 1999 was Managing Director of Strand Partners Limited, a privately-owned investment banking firm. For the past several years Mr. West has worked independently and he is currently a non-executive director of several companies, including Bellamy's of Bruton Place Limited, a restaurant company, CLP Envirogas Holdings Limited, a renewable energy company, First City Insurance Group Limited, an insurance broker, and Abacus Syndicates Limited, a Lloyd's Managing Agency. Mr. West has had considerable previous experience advising in the oil and gas sector, including playing a significant role in the establishment of Sibir Energy PLC, an AIM listed oil and gas company with interests in Western Siberia, of which he was Chairman for two years. As Chairman, Andrew West will receive annual compensation of £50,000 and has been granted options on 24 July 2006 over a further 75,000 ordinary shares of 5.714p each at £1.04 per share, exercisable by 24 July 2011. Mr. West was previously granted options on 13 February 2006 over 125,000 ordinary shares of 5.714p each at £1.445 per share, exercisable by 13 February 2011. The Company plans to recruit a third non-executive director in the near term to balance representation on the board with three executive and three non-executive directors. John Dorrier, CEO of Gulfsands Petroleum, said: 'Since his appointment as a Director in February this year, Mr. West has taken an active and constructive role on the Company's Board. In his new position as Chairman, we believe he will expand this role with a greater emphasis on working with our shareholders and institutional investors.' Enquiries: Gulfsands Petroleum (Houston) 001-713-626-9564 David DeCort, Chief Financial Officer College Hill (London) 020-7457-2020 Nick Elwes Paddy Blewer Teather & Greenwood (London) 020-7426-9000 James Maxwell (Corporate Finance) Tanya Clarke (Specialist Sales) Note to Editors • Gulf of Mexico, USA The Company owns interests in 64 offshore blocks comprising approximately 216,000 gross acres which includes 39 producing oil and gas fields offshore Texas and Louisiana with proved and probable recoverable reserves of 32.4 BCFGE, consisting of 19.8 BCFG and 2.1 MMBO as of 1 January 2006 with a net present value of $183 million. Additionally, there is a further 2.8 BCFGE of possible recoverable reserves with a net present value of $15.8 million. • Syria In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator. The block covers 11,000 square kilometres and surrounds areas which currently produce over 100,000 barrels of oil per day from existing fields. In January 2006 the Company completed the acquisition of 1,155 kilometers of 2D seismic and anticipates drilling two wells during 2006. The first well, known as Souedieh North, commenced drilling in late April 2006 and was temporarily suspended in June for further analysis. The second well known as Tigris is scheduled to spud in late August of 2006 and has the potential to contain in excess of 500 MMBOE. Gulfsands has identified 31 total exploitation and exploration prospects within Block 26 with mean resources potential exceeding 1 billion barrels of recoverable oil. Ryder Scott completed a reserves study on the Tigris structure in 2006 and these reserves were classified as either oil or gas bearing until such time as the Company drills and tests the Tigris structure. As of 1 July 2006 Ryder Scott determined that the Probable Reserves net to Gulfsands after applying the terms of the Production Sharing Contract is 102 BCFG with a net present value discounted at 10% of $233 million. For primarily a natural gas accumulation, an additional 75 BCFG of possible reserves net to Gulfsands were estimated to have a 10% discounted net present value of $261 million. Furthermore, the Company completed its own economic evaluation on the Prospective Gas Resource and has estimated that Prospective Gas Resource net to Gulfsands is 577 BCFG with a net present value of approximately $1.06 billion. In summary total gas reserves potential net to Gulfsands among Probable and Possible Reserves for the natural gas case is 177 BCFG (30 MMBOE) with a net present value of $494 million and when combined with the Prospective Gas Resource it totals 754 BCFG (126 MMBOE) with a net present value of approximately $1.55 billion. For primarily an oil accumulation, Ryder Scott determined the Possible Reserves net to Gulfsands after applying the terms of the Production Sharing Contract are 19.4 million barrels of oil having a net present value discounted at 10% of $452 million. Furthermore, the Company completed its own economic evaluation on the Prospective Oil Resource and has estimated that Prospective Oil Resource net to Gulfsands is 50.9 MMBO with a net present value of approximately $1.51 billion. In summary total oil reserves potential net to Gulfsands among Possible and Prospective Oil Resource for the oil case is 70.3 MMBO with a net present value of approximately $1.96 billion. • Iraq Gulfsands signed a Memorandum of Understanding in January 2005 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 expects to conduct further technical work and commercial discussions with the Iraq Oil Ministry. • Onshore USA Gulfsands operates onshore in the USA through its 83% owned subsidiary company Darcy Energy LLC. As of 1 January 2006, Darcy Energy owned interests in two oil and gas fields onshore Texas, USA (Emily Hawes and Barb Mag) with proved and probable recoverable reserves of 1.6 BCFGE, consisting of 1.2 BCFG and 58,000 barrels of oil with a net present value of $9.5 million. Additionally, there is a further 2.2 BCFGE of possible recoverable reserves with a net present value of $7.9 million. This information is provided by RNS The company news service from the London Stock Exchange
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