Exercise of Options

For immediate
release
17 October 2008

                       Gulfsands Petroleum plc

                         Exercise of options

London, 17th  October,  2008:  Gulfsands  Petroleum  plc  (AIM:  GPX)
("Gulfsands",  "the  Group"  or  "the  Company"),  the  oil  and  gas
production, exploration and  development company  with activities  in
Syria, Iraq  and the  USA announces  that it  has issued  a total  of
875,000 new  ordinary shares  in  respect of  the exercise  of  share
options.

These ordinary  shares in  the Company  have been  issued to  Nordman
Continental S.A., a company owned  by a discretionary trust of  which
the children of  Mr. Mahdi  Sajjad, a  Director of  the Company,  are
potential beneficiaries.  These shares  have been issued pursuant  to
the exercise  of options  to purchase  ordinary shares  at $0.57  per
share, which options were issued to Nordman Continental S.A. prior to
Admission of the Company's shares to trading on AIM in 2005.

Nordman Contintental  S.A. is  now interested  in 9,585,625  ordinary
shares representing  8.09 per  cent. of  the Company's  issued  share
capital.

Application will be made for the shares to be admitted to trading  on
AIM and Admission is expected to take place on 22 October, 2008.  The
total number of shares in  issue following exercise of these  options
is 118,522,500 ordinary shares.



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
Sam Botterill
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.  The Khurbet East oil field was discovered
following the completion of drilling of the KHE-1 well in June 2007
and commenced commercial production within 13 months of the
discovery. This field is currently producing in excess of 11,500
barrels of oil per day through the Khurbet East Early Production
Facility (EPF).  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.  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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