Drilling Update

Gulfsands Petroleum PLC
27 July 2007



1,085 bopd of 26 degree (API) oil flows on DST of Cretaceous aged reservoir

KHE-2 appraisal well extends oil column



London, 27th July, 2007: Gulfsands Petroleum plc ('Gulfsands', the 'Group' or
the 'Company' - AIM: GPX), the oil and gas production, exploration and
development company with activities in the U.S.A., Syria and Iraq is pleased to
announce that the Company has successfully drilled and tested the first
appraisal well on the Group's Khurbet East discovery, being the Khurbet East - 2
('KHE-2') well.   An open-hole drill-stem test produced oil to surface at rates
up to 1,085 barrels of oil per day ('bopd').



The Massive Formation



The Massive Formation was encountered in the KHE-2 appraisal well at a depth of
1,931 metres.  The Company then successfully recovered approximately 10 metres
of whole core from a 20 metre coring interval.  Recovery of the entire cored
section was limited due to the presence of fractures in the reservoir.  Prior to
drilling ahead, the Company commenced an open-hole drill-stem test of
approximately the top 10 metres of the reservoir, which resulted in oil flow to
surface at a maximum rate of approximately 1,085 bopd during nitrogen lift of
the well.  During the test period following the nitrogen lift the average
production rate was 710 bopd increasing to a final rate of 820 bopd.  The
results of the testing operation indicate excellent formation permeability and
indicate that this production rate would be materially enhanced with artificial
lift methods (gas lift or pump).  All wells in the Massive Formation in the
Block 26 area go onto artificial lift relatively soon after they go onto initial
production.  Preliminary assessment of the oil gravity is 26 degrees API, which
makes this oil virtually identical to the oil produced in the Souedieh Field,
located some 12 kilometres to the northeast.  Oil samples from the test have
been submitted for laboratory analysis, but this preliminary assessment is
consistent with the oil recovered from Massive Formation in the KHE-1 well.



After the successful drill-stem test, the Company drilled the KHE-2 to a total
depth of 2,050 metres and completed a wireline logging programme.  Independent
wireline log analysis of the Massive reservoir indicates a gross oil column of
some 49 metres with approximately 29 metres of net oil pay, compared with the
lower figures of 31 metres and 22.5 metres respectively seen in the KHE-1 well.



The strong flow-rate from KHE-2 plus the geologic and reservoir information
gained from both the KHE-1 and KHE-2 wells indicate that the Khurbet East
discovery should be highly economic in the context of low development costs,
proximity to production infrastructure and a favourable Production Sharing
Contract in Block 26.



The Chilou Formation



The Tertiary aged Chilou B Formation was also encountered in the KHE-2 well.
This section appears similar to that encountered in the KHE-1 well; however,
preliminary analysis suggests the presence of water and residual or immoveable
oil, or a relatively low permeability reservoir.  Consistent with other wells
drilled in the area, the Chilou B is considered to have minor resource potential
compared to both the Cretaceous and Triassic reservoirs at Khurbet East.



Forward Programme



Following the successful results from the KHE-1 and KHE-2 wells, the Company
plans to acquire a 3D seismic survey over Khurbet East commencing in September.
This data will be used to optimize future drilling locations at Khurbet East,
facilitating a strategy to move towards early development and production.  In
parallel with this acquisition programme, the Company will commence appraisal of
the Kurrachine Dolomite, and draft the further field appraisal programme and the
initial Development Plan for discussion with its industry and government
partners for implementation at the earliest possible point in time.  Finally,
the Company will continue further exploration on the Block following up on the
Khurbet East discovery.



Gulfsands' CEO, John Dorrier, said:



'The test of oil from the Massive formation confirms the excellent flow
potential of this reservoir and the lateral continuity of the reservoir between
the KHE-1 and KHE-2 wells.  Greater net oil pay in KHE-2 than KHE-1 indicates a
deeper oil-water contact than previously expected, thereby increasing the
reserves potential in this reservoir.  The Company now plans to move rapidly to
commercialize this discovery in cooperation with its partners.'



NB: This release has been approved by Jason Oden, Gulfsands Exploration Manager,
who has a Bachelor of Science degree in Geophysics with 22 years of experience
in petroleum exploration and management and is registered as a Professional
Geophysicist.  Mr. Oden has consented to the inclusion of the material in the
form and context in which it appears.





ABOUT GULFSANDS:



Gulf of Mexico, USA

The Company owns interests in 54 offshore blocks comprising approximately
193,000 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 2006 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 2006 of 3.1 BCFGE (0.5 MMBOE), consisting of 2.8 BCFG and 57,000
barrels of oil.



Syria

Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria.  Block 26 covers 11,000 square kilometers and encompasses existing fields
which currently produce over 100,000 barrels of oil per day. These fields are
operated by third parties including the Syria Petroleum Company.



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 contracts 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.





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.



For further information including the Company's recent investor presentation,
please refer to the Company's website www.gulfsands.net or contact:




Gulfsands Petroleum (Houston)                                + 1-713-626-9564
John Dorrier, Chief Executive Officer
David DeCort, Chief Financial Officer

Gulfsands Petroleum (London)                                 020-7182-4016
Kenneth Judge, Director of Corporate Development             07733-001-002

College Hill (London)                                        020-7457-2020
Nick Elwes
Paddy Blewer

Teather & Greenwood (London)                                 020-7426-9000
Tom Hulme (Corporate Finance)
Tanya Clarke (Specialist Sales)












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