Directorate Change
Gulfsands Petroleum PLC
14 February 2006
14 February 2006
Gulfsands Petroleum PLC
('Gulfsands' or 'the Group')
Gulfsands Announces Board Changes
Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
announced today the appointment of two new non-executive directors, Mr. Andrew
West and Mr. David Cowan, to replace departing non-executive directors Mr.
Malcolm Butler and Mr. Charles Stonehill. The changes to the Board reflect the
changing needs of Gulfsands as its executive management is increasingly focused
on the development of its business in the Middle East, specifically Syria.
Andrew West, 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.
David Cowan is a solicitor residing in Vancouver, Canada. He is a partner with
Lang Michener LLP, a national Canadian law firm with offices in Vancouver,
Toronto and Ottawa and is a member of that firm's Venture Capital Group. David
Cowan holds an LLB from the University of British Columbia (1979) and practices
primarily in the area of corporate and securities law. He represents numerous
publicly traded companies and has previously worked with the British Columbia
provincial government, including the British Columbia Securities Commission,
where he was involved in the drafting of securities legislation. Mr. Cowan is a
past Chairman of both the Securities and Natural Resources subsections of the
British Columbia branch of the Canadian Bar Association, and the National
Natural Resources subsection of the Canadian Bar Association. He has also
served as a member of the Securities Policy Advisory Committee to the British
Columbia Securities Commission and is a frequent lecturer for the Continuing
Legal Education Society of British Columbia. Mr. Cowan is currently a director
of Brazilian Diamonds Limited, a company listed on the Toronto Stock Exchange
and AIM, and is also a director of Alto Ventures Ltd., Tres-Or Resources Ltd.
and Piper Capital Inc., all listed on the TSX Venture Exchange. He is also a
director of Gulfsands Petroleum Ltd. and Gulfsands Petroleum Syria Ltd. (wholly
owned subsidiaries of Gulfsands Petroleum PLC), and has provided legal and
commercial counsel to Gulfsands since its incorporation in 1997. Mr. Cowan's
specific Middle East region experience includes ventures in Syria, Iraq and
Algeria.
Since the listing of the Company's shares on AIM last year, the Company's asset
base has grown and become increasingly focused in the Middle East, specifically
in Block 26, Syria. Since the IPO, Gulfsands has increased its working interest
in Block 26 from 20% to 50% and became operator with the drilling programme due
to commence in May. The executive management of the Company believes this focus
will result in rapid and sustained growth of the Company and also believes that
the composition and direction of the Board should be aligned with this strategy.
Mr. Butler and Mr. Stonehill agreed with the executive management of the
Company that the prospects for the further, successful development of the
company's asset base in both the Middle East and the GOM are strong.
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 'The Company would like to thank
Malcolm and Charles for their contributions to the Board and their service
through the early period of the Company's existence as an AIM listed company,
and we welcome Andrew and David as new directors of the Company.'
Enquiries:
Gulfsands Petroleum (Houston) 001-713-626-9564
David DeCort, Chief Financial Officer
College Hill (London) 020-7457-2020
Ben Brewerton / Nick Elwes
Seymour Pierce (London) 020-7107-8000
Richard Redmayne
Jonathan Wright
Note to Editors
• Gulf of Mexico, USA
The Group 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 approximately 30.3
billion cubic feet of natural gas equivalents (BCFGE), consisting of 14.94 BCFG
and 2.56 MMBO as of 30 June 2005 with a net present value of approximately $129
million. Additionally, there is a further 3.4 BCFGE of possible recoverable
reserves with a net present value of approximately $14 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 Group completed the acquisition of 1,155 kilometers of 2D seismic and
anticipates drilling two wells during 2006. The first well, known as Souedieh
North is scheduled to be drilled in May of 2006 which has the potential to
contain in excess of 100 MMBO. The second well known as Tigris is scheduled to
be drilled in 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.
An independent reserves report was issued in January 2006 on the Tigris
structure. The reserves were classified as either oil or gas bearing until such
time as the Company drills and tests the Tigris structure. The reserve report
concluded that there are 442 BCFG of probable recoverable reserves in the Tigris
structure. Additionally, the report classified the possible reserves as either
natural gas or oil. The gas case reflected an additional 442 BCFG in possible
recoverable reserves and an additional 3447 BCFG as prospective resource. The
oil case reflects 104 MMBO and 64 BCFG in possible recoverable reserves and a
further 408 MMBO and 245 BCFG as prospective resource. In summary, the natural
gas case equates to total recoverable reserves potential among probable
reserves, possible reserves and prospective resource as 4330 BCFG (722 MMBOE),
while the oil case equates to 512 MMBO and 308 BCFG (combined 563 MMBOE).
• 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 80% owned subsidiary company
Darcy Energy LLC. At the Emily Hawes field, initial gas production commenced in
the summer of 2005. The first well in the Barb Mag oil field has been drilled
and wireline logged with some 38 feet of potential net pay and production tested
at 1.5 million cubic feet of natural gas and 36 barrels of condensate per day.
Production from this well should commence during the first quarter of 2006.
Darcy Energy has a 34.375% and 37.5% working interest in these fields
respectively.
Further information:
David Cowan, aged 51, is or has, in the past five years, been a partner or
director of the following partnerships and companies:
Current Former
Lang Michener LLP Clark Wilson
Gulfsands Petroleum Ltd. 572443 B.C. Ltd.
Gulfsands Petroleum Syria Ltd.
Brazilian Diamonds Ltd.
Alto Ventures Ltd.
Piper Capital Inc.
603498 B.C, Ltd.
Xcert Software Inc.
Tres-Or Resources Ltd.
Mr. Cowan owns 218,750 ordinary shares in Gulfsands Petroleum PLC.
Andrew Thomas West, age 48, is or has, in the past five years, been a partner or
director of the following partnerships and companies:
Current Former
Abacus Syndicates Limited BCT Limited
Danish Re Syndicates Limited BCT Employee Share Trust Limited
GMA Imagine Limited Clovis Associates Limited
Imagine Underwriting Limited Meridian Eventing Limited
Bellamy's of Bruton Place Limited Arbutus Projects (UK) Limited
Buck's Club Limited Blackborough End Energy Limited
CLPE Holdings Limited (and subsidiaries Chelson Meadow Energy Limited
and affiliates) Mayton Wood Energy Limited
Arbutus Renewables Limited
Auchencarroch Energy Limited
Beetley Energy Limited
Beighton Energy Limited
Bellhouse Energy Limited
Bellhouse 2 Energy Limited
Bolam Energy Limited
Broom Energy Limited
Cathkin Energy Limited
Cilgwyn Energy Limited
CLP Developments Limited
CLP Envirogas Limited
CLP Services Limited
CLPE 1991 Limited
CLPE 1999 Limited
CLP Envirogas Limited
CLPE Holdings Limited
CLPE Projects 1 Limited
CLPE Projects 2 Limited
CLPE Projects 3 Limited
CLPE ROC-1 Limited
CLPE ROC-2 Limited
CLPE ROC-3 Limited
CLPE ROC-4 Limited
CLPE ROC 2-A Limited
CLPE ROC 3-A Limited
CLPE ROC 4-A Limited
Colsterworth Energy Limited
Connon Bridge Energy Limited
Costessey Energy Limited
Cotesbach Energy Limited
Deerplay Energy Limited
Feltwell Energy Limited
Funtley Energy Limited
Garlaff Energy Limited
Jameson Road Energy Limited
Kenwick Energy Limited
Kilgarth Energy Limited
Landgas Developments Limited
Landgas Energy Limited
Landgas Services Limited
Leadenham Energy Limited
March Energy Limited
Mountsorrel Energy Limited
Queens Park Road Energy Limited
Rowley Energy Limited
Rushton Energy Limited
Skelbrooke Energy Limited
Snetterton Energy Limited
Stoney Hill Energy Limited
Summerston Energy Limited
Todhills Energy Limited
United Mines Energy Limited
Wetherden Energy Limited
Whinney Hill Energy Limited
Whinney Hill 2 Energy Limited
Whisby Energy Limited
Greenwich Insurance Holdings PLC
First City Insurance Limited
Ganymede Limited
Clovis Partners Limited ('CPL'), a consultancy company owned by Mr. West, was
the subject of a Winding Up Order on 25 October 2000. The amount owing to the
Petitioner was paid. The Administration was concluded three months later on 29
January 2001, the Official Receiver having satisfied himself that there were no
matters requiring his further attention and that no other creditors were
involved. CPL was dissolved on 20 May 2002.
There is no further information required to be disclosed in respect of the
appointments of Mr. Cowan or Mr. West pursuant to schedule 2 rule (g) (i) to
(viii) of the AIM rules for companies.
This information is provided by RNS
The company news service from the London Stock Exchange