Gulf of Mexico Drilling Update

Immediate release 11th June 2008

Gulfsands Petroleum plc

Gulfsands participates in successful well at Eugene Island 38

London, 11th June 2008: 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 announce that the Company has
discovered natural gas in multiple pay zones in the EI38 #17 well,
located in the Eugene Island protraction area within the Gulf of
Mexico. This follows the successful gas discovery from the EI57 #16
well announced on 21 May 2008.

The EI38 #17 well was drilled to a total measured depth of 12,292'
(11,443' TVD). Gulfsands' preliminary analysis of the well logs
indicates total net pay of approximately 121' from multiple pay zones
within high quality Miocene aged reservoirs. The hydrocarbons
encountered are natural gas with associated condensate. Production
casing has been set and the well is being prepared for tie-in to the
EI57 offshore platform.

Gulfsands owns a 24.99% working interest in the EI38 #17 well. Total
cost to drill and run production casing was approximately $4.83
million (Gulfsands net $1.21 million). Production from this well is
expected to commence in August 2008.

Andrew West, Chairman of Gulfsands Petroleum, said:

"The EI38 #17 well is the second successful well from a two well
drilling campaign at Eugene Island. Both wells will add significant
cash flow from our US assets once they are tied-in for production in
August, further underpinning our strategy of having production,
development and exploration assets in our portfolio".

This release has been approved by Jason Oden, Gulfsands Exploration
Manager, who has a Bachelor of Science degree in Geophysics with 23
years of experience in petroleum exploration and management and is
registered as a Professional Geophysicist. Mr. Oden 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]
Kenneth Judge, Director of Corporate Development [phone]

Buchanan Communications Limited (London) [phone]
Bobby Morse
Nick Melson

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. 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. In the first half of 2007 Gulfsands
announced an oil and gas discovery on Block 26 called Khurbet East.
This discovery is currently under development with first production
targeted for the fourth quarter of 2008. 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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