Completion of Production Facility

Immediate Release 1 July 2008



                       Gulfsands Petroleum plc
 Khurbet East Early Production Facility Construction Completed Ahead
                             of Schedule

London, 1 July 2008:  Gulfsands Petroleum plc ("Gulfsands", the
"Group" or the "Company" - AIM: GPX), the oil and gas production,
exploration and development company with activities in Syria, Iraq,
and the U.S.A., is pleased to announce that construction and
installation of the 10,000 bpd Early Production Facility for the
Khurbet East Field has now been completed. Handover of this facility
has been achieved less than five months after approval was granted
for the development of the Khurbet East field (see announcement of
13th February, 2008).
Gulfsands, the Operator of Syria Block 26 and Dijla Petroleum
Company, the jointly owned company established with Syria Petroleum
Company ("SPC") to act as the "joint operating company" under the
terms of the Production Sharing Contract for Block 26, are now
proceeding with pressure testing of the Early Production Facility and
well tie-in operations.  Initial well tie-in operations will include
the KHE-4, KHE-5H and KHE-6H development wells which were completed
as production wells.
Following the tie-in of these development wells, the KHE-2 and KHE-3
appraisal wells will be re-entered to be completed as production
wells for tie-in to the Early Production Facility. It is expected
that completion operations for the KHE-2 and KHE-3 wells will
commence in mid July and be completed by early August.
Accordingly, Gulfsands is anticipating the commencement of oil
production during the month of August 2008, well ahead of the
schedule contemplated when development approval was granted in mid
February, 2008.
Commenting on this important milestone in the development of the
Khurbet East Field, Andrew West, Chairman of Gulfsands said:
"The Government of Syria and Syria Petroleum Company have worked
tirelessly with Gulfsands in bringing into production this important
new oil field which, after completion of the Full Field Development
contemplated to commence in early 2009, should provide a significant
boost to Syria's oil production by 2010.
We would like to express our sincere gratitude to the Syrian
government and SPC on their co-operation with our technical teams and
valuable contribution to the successful completion of the Early
Production Facility ahead of schedule.  The fast tracking of the
Early Production Facility is also testament to the significant
capabilities of the Gulfsands' technical team".


Separately, Gulfsands is hosting a presentation in Damascus and a
site visit to Khurbet East for UK based oil and gas analysts on
Monday 30th June and 1 July 2008. No material new information will be
discussed during the site visit.  The presentation given to analysts
is now available on the Company's website www.gulfsands.net.
For more information please contact:


Gulfsands Petroleum (London)                      [phone]
Kenneth Judge, Director of Corporate Development  [phone]
Jon Bey, Investor Relations: North America        + 1 866 689 2599


Buchanan Communications Limited (London)          [phone]
Bobby Morse

RBC Capital Markets (London)                      [phone]
Andrew K. Smith
Sarah Wharry


ABOUT GULFSANDS:

Gulfsands is listed on AIM.

Syria
Gulfsands owns a 50% working interest and is operator of Block 26 in
North East Syria.  Block 26 covers approximately 8,250 square
kilometres and encompasses existing fields which currently produce
over 100,000 barrels of oil per day. These fields are operated mainly
by the Syria Petroleum Company.  In the first half of 2007 Gulfsands
announced an oil and gas discovery on Block 26 called Khurbet East.
This discovery is currently under development with first production
targeted for the fourth quarter of 2008.  On 23 August 2007, the
Company initiated the first extension period of exploration on Block
26 for a further period of three years.

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 contract 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.

Gulf of Mexico, USA
The Company owns interests in 48 offshore blocks comprising
approximately 168,000 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 2007 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 2007 of 3.1 BCFGE (0.5
MMBOE), consisting of 2.8 BCFG and 57,000 barrels of oil.

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.

More information can be found on the Company's website
www.gulfsands.net.

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