Drilling Update in Syria

Immediate Release   21 January 2010




                            GULFSANDS PETROLEUM PLC


OPERATIONS UPDATE:

Khurbet East-14 Delineation Well Flows Oil to Surface Indicating a Deeper Field
Oil-Down-To ("ODT") Depth

Khurbet East-13 Well Commences Production

Zaman-1 Exploration Well Spudded


London, 21st January 2010:  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  provide the following update on the Company's operations at Block 26, Syria,
where Gulfsands holds a 50% interest and acts as operator.

Khurbet East-14 Delineation Well Intersects Oil Column and Flows Oil to Surface

The  Khurbet East ("KHE")-14 delineation well, located approximately 1 kilometre
north  of delineation well KHE-12 and  approximately 4.9 kilometres south of the
KHE-1 discovery well, was drilled to a total depth of 2045 metres measured depth
("MD")  and 1626 metres true vertical depth below mean sea level ("TVD SS") with
the  primary objective being  to intersect the  oil-water contact in the Khurbet
East field.

The  well encountered the top of the  Cretaceous Massive Formation at a measured
depth   ("MD")   of  1988 metres  (1571  metres  TVD  SS)  and  the  preliminary
interpretation  of drilling data and wireline logs identified a gross oil column
at the top of the Massive Formation of 14 metres, with a net oil pay of 6 metres
and average porosity within the pay zone of 22%.

An open-hole drill-stem test was conducted over the interval 1982-1998 metres MD
(1564-1580  metres TVD SS). The  KHE-14 well flowed oil  of 27 degrees API at an
average rate of 613 barrels of oil per day ("bopd") for a 7 hour period on a 2"
choke  using  nitrogen  lift.  Negligible  quantities  of  formation  water were
produced during this flow period.

Although  a definitive  oil-water contact  was not  observed on wireline logs or
drilling  data, the  wireline logs  indicates that  oil was produced during this
test  from a depth of 1998 metres MD  (1580 metres TVD SS), 9 metres deeper than
the previous deepest oil flow observed in the field in well KHE 13.

A new field ODT has accordingly been interpreted at 1580 metres TVD SS.

These  test results from KHE-14 and in particular the deeper ODT are expected to
have  positive implications for  reserves assessments which  are currently being
undertaken on the Khurbet East field and which will be the subject of a separate
announcement at the beginning of the Second Quarter 2010.

Khurbet East-13 Well Commences Production

Well  KHE-13, which was drilled and completed at  the end of last year, has been
tied  back to the Khurbet East  Early Production Facility, located approximately
3.5 kilometres  north-east of the KHE-13 surface location. The well is currently
producing  at  approximately  310 bopd  under  natural  flow and with negligible
amounts  of formation water. The production performance exhibited by well KHE-13
is  in line with expectations and consistent with its location within the field;
well  productivity is not as strong as that demonstrated by the high performance
production  wells located near the  crest of the field,  but is superior to that
observed  from  wells  drilled  in  the  southern  flank.  Well KHE-13 will be a
candidate  for  production  enhancement  later  this  year  via  installation of
permanent artificial lift equipment.

Zaman-1 Exploration Well Spudded

Zaman-1,  the first well in the 2010 exploration drilling programme, was spudded
on  Friday  15(th) January.  The  Zaman  prospect  is located approximately 4.5
kilometres  to the south of  the Khurbet East Field  as currently delineated and
targets  the same Cretaceous  Massive formation under  production at the Khurbet
East  field. Gross unrisked speculative reserves for this prospect are estimated
to  be in the order  of 23 to 35 million barrels  of oil. Drilling operations on
the Zaman-1 well are anticipated to take approximately 45 days to complete.

Ric Malcolm, Gulfsands CEO, said

"The  positive and significant results from  KHE-14 delineation well in addition
to  the  start  of  oil  production  from KHE-13 both represent very significant
milestones  in the continuing development of the  Khurbet East Field from both a
production and potential reserves perspective.  With the spudding of the Zaman-1
exploration  well, the Company now commences  an active and potentially exciting
exploration drilling programme of four wells during 2010."

This release has been approved by Richard Malcolm, Chief Executive of Gulfsands
Petroleum Plc who has a Bachelor of Science degree in Geology with 30 years of
experience in petroleum exploration and management. Mr. Malcolm has consented to
the inclusion of the technical information in this release in the form and
context in which it appears.

For more information please contact:


 Gulfsands Petroleum (London)                               [phone]

 Richard Malcolm, Chief Executive Officer
 Kenneth Judge, Director of Corporate Development &         [phone]
 Communications



 Buchanan Communications Limited (London)                   [phone]

 Bobby Morse
 Ben Romney



 RBC Capital Markets (London)                               [phone]

 Josh Critchley
 Matthew Coakes
 Brett Jacobs


ABOUT GULFSANDS:

Gulfsands is listed on the AIM market of the London Stock Exchange.

Syria

Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria.  The Khurbet East oil field was discovered in June 2007 and commenced
commercial production within 13 months of the discovery. This field is producing
at an average gross production rate of approximately 17,300 barrels of oil per
day through an early production facility. Block 26 covers approximately 8,250
square kilometres and encompasses existing fields which currently produce over
100,000 barrels of oil per day, and are operated mainly by the Syrian Petroleum
Company.  The current exploration license expires in August 2010 and is
extendable for a further two years.  Gulfsands' working interest 2P reserves in
Syria at 31 December 2008 were 35.2 mmbbls.

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, following completion
of a feasibility study on the project, and is negotiating details of a
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. The Company is
actively engaged in discussions with respect to financing and potential equity
partners.  Gulfsands has no reserves in Iraq.

Gulf of Mexico, USA

The Company owns interests in 44 blocks comprising approximately 138,000 gross
acres offshore Texas and Louisiana, which include 30 producing oil and gas
fields with proved and probable working interest reserves at 31 December 2008 of
5.1 mmboe.

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.com




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