Drilling Update

Gulfsands Petroleum PLC
15 June 2007

Khurbet East -2 Appraisal Well Commences in Syria



London, 15th June, 2007:  Gulfsands Petroleum plc (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 commenced drilling the
Khurbet East ('KHE-2') appraisal well within Block 26, Syria on Thursday, 14
June.

Gulfsands, the operator and 50% working interest owner in Block 26, Syria, has
commenced drilling the KHE-2 well to appraise and evaluate the Tertiary Chilou
and Cretaceous Massive reservoirs encountered in the KHE-1 discovery well. The
total drilling depth of the KHE-2 well is expected to be approximately 2,050
metres and will require approximately 45 days to drill and evaluate.

The Cretaceous Massive Formation in KHE-1 contained approximately 22 metres of
net oil pay over a 25 metre gross interval based on wireline log interpretation,
reservoir pressure gradients and fluid sample recovery. The oil in this
reservoir has an API gravity of approximately 24 degrees, based on PVT analysis
of the recovered oil sample.  The Massive formation was encountered at 1917
metres depth in the KHE-1 well.

The Tertiary Chilou 'B' Formation contained approximately 26 metres of net oil
pay in the KHE-1, based on wireline log interpretation. The Chilou 'B'
Formation was encountered at 1316 metres depth in the KHE-1 well.

The KHE-2 well will also provide further information on the lateral extent and
continuity of these reservoirs.

The Company expects to provide the final results from KHE-2 in early August.



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 kilometres 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 Misan 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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