Interim Results

Gulfsands Petroleum PLC
15 September 2005

15 September 2005

Gulfsands Petroleum PLC
('Gulfsands' or 'the Group')

Half Year Results for the Six Months Ended 30 June 2005


                        Strong Revenue and Profit Growth
                    Cash Flow Increased to over $12 million


Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
announces its results for the six months ended 30 June 2005.

FINANCIAL HIGHLIGHTS

     •    Turnover for period increased to $26.04 million (30 June 2004: $8.95
          million).

     •    Operating profit for period increased to $8.74 million (30 June 2004:
          $1.45 million).

     •    Cash flow from operating activities for the period increased to $12.03
          million (30 June 2004: $434,000).

     •    Retained profit for period increased to $1.54 million (30 June 2004:
          $33,000).

OPERATIONAL HIGHLIGHTS

     •    Proved and probable reserves within Northstar Gulfsands LLC, of which
          Gulfsands owns 52.6%, increased significantly as of 30 June 2005 to 
          58.1 billion cubic feet of natural gas equivalents (BCFGE) with a net
          present value discounted at 10% (NPV10) of $248.1 million (30 June 
          2004: 51.7 BCFGE with a NPV10 of $137.5 million).

     •    Gulfsands increased its working interest in Block 26 in Syria to 50%
          and became the operator.

     •    Gulfsands signed a Memorandum of Understanding with the Iraq Ministry
          of Oil on the Misan Gas Project.

     •    Gulfsands increased its ownership in Misan Gas Project, Iraq to 100%
          from 85%.

     •    Gulfsands successfully listed on AIM in April 2005 and raised
          approximately £30 million (net of expenses).

     •    Northstar Gulfsands LLC had a natural gas discovery in the Gulf of
          Mexico that tested natural gas at a rate of 5.2 million cubic feet of
          gas per day with net reserves potential of approximately 1 BCFGE.

     •    Northstar Gulfsands LLC participated in 10 recompletions and workovers
          on wells which resulted in approximately 3.2 BCFGE reserve additions
          at a cost of approximately $.50 per million cubic feet of natural gas.

STRATEGIC HIGHLIGHTS

Subsequent to 30 June 2005:

     •    Gulfsands commenced the acquisition of some 1,170 kilometers of 2D
          seismic on Block 26, Syria.

     •    Northstar Gulfsands LLC participated in two new natural gas
          discoveries in the Gulf of Mexico with net potential reserves of some
          2 - 5 BCFGE.

     •    Darcy Energy LLC, owned 80% by Gulfsands, participated in a natural
          gas discovery in Fort Bend County Texas with a 37.5% working interest.
          The well was production tested at a daily rate of 1.5 million cubic
          feet of natural gas and 36 barrels of condensate.

     •    Darcy Energy LLC commenced onshore gas production from the Emily Hawes
          Field in Calhoun County Texas at a 34.375% working interest.


John Dorrier, CEO of Gulfsands Petroleum, said:

'Gulfsands' IPO, the acquisition of the additional interests in Syria and Iraq,
and the continued strong performance in the Gulf of Mexico are key achievements
during the first half of the year.  Gulfsands is pleased to report that
Northstar Gulfsands' operations suffered minimal damage from Hurricane Katrina.
Current production is over 90% of pre-storm levels and expected to increase
further during the next few weeks as the few affected facilities are returned to
production.'


Enquiries:
Gulfsands Petroleum (Houston)                                713-626-9564
David DeCort, Chief Financial Officer

College Hill (London)                                        020-7457-2020
Ben Brewerton / Nick Elwes

Seymour Pierce (London)                                      020-7107-8000
Richard Redmayne
Jonathan Wright


NB. Gulfsands Petroleum PLC did not acquire the share capital of Gulfsands
Petroleum Ltd. until after 31 December 2004, therefore the results presented for
June 30, 2004 and December 31, 2004 are the results of Gulfsands Petroleum Ltd.
and its subsidiaries.


Operating Review

USA

During the period, Northstar Gulfsands LLC, a subsidiary company owned 52.6% by
Gulfsands, participated in a Gulf of Mexico natural gas discovery.  Northstar
Gulfsands LLC has participated in two further natural gas discoveries in the
Gulf of Mexico since 30 June 2005.  Additionally, the LLC participated in 10
recompletions and workovers on wells within existing producing fields in the
Gulf of Mexico which resulted in the addition of approximately 3.2 BCFGE net to
the LLC at a cost of approximately $.50 per million cubic feet of natural gas.

As a result of a large acquisition completed in 2004, net production to
Northstar Gulfsands LLC increased to 5,000-6,000 barrels of oil equivalent per
day during the period resulting in large increases in both turnover and net
profit for the Group.  Gulfsands' financial performance was also helped by
strong oil and gas prices during this period.

Subsequent to 30 June 2005, Darcy Energy LLC, owned 80% by the Group,
participated with a 37.5% working interest in a natural gas discovery in Fort
Bend County Texas whereby the well was production tested at a daily rate of 1.5
million cubic feet of natural gas and 36 barrels of condensate.  Also,
subsequent to 30 June 2005, Darcy commenced production from the Emily Hawes
Field located in Calhoun County Texas whereby it has a 34.375% working interest.

Syria

The Group capitalised on an opportunity to increase its interest in Block 26,
located in northeast Syria, by purchasing Devon Syria Ltd., holder of 80%
interest in Block 26, following a corporate decision by Devon Energy Corporation
to exit Syria.  Concurrent with the acquisition of the Devon interest, the Group
farmed-out a 50% interest in the Block to SoyuzNefteGas, a private Russian oil
and gas company.  Gulfsands is now operator of Block 26 and holds a 50% working
interest and has commenced the acquisition of 1,170 kilometers of 2D seismic.
The Group expects to drill the first exploration well in the Block in early
2006. Gulfsands has identified some 27 leads and prospects with aggregated
potential exceeding 1 billion barrels of recoverable oil reserves.

Iraq

In Iraq, the Group signed a Memorandum of Understanding with the Iraq Oil
Ministry on 5 January 2005 for the Misan Gas Project.  Also, during the period
the Group submitted a definitive contract for the Misan Gas Project to the Iraq
Oil Ministry and commenced with negotiations.  The Misan Gas Project is a
midstream project that gathers gas that is currently being flared at the oil
fields in Southern Iraq, brings the gas to a central processing plant to clean
it of impurities and remove the light hydrocarbon liquid fraction (Natural Gas
Liquids), and then transmits the natural gas for further distribution and use in
Iraq.  The extracted hydrocarbon liquids are then transmitted to a southern port
for storage, offloading and export.  In May 2005, Gulfsands increased its
interest in the Misan Gas Project to 100% from 85%.

AIM Listing

The Group formally completed an IPO on the London Stock Exchange (AIM market)
and raised approximately £30 million (net of expenses).  Dealings commenced on 8
April 2005.  These new funds will enable the Group to re-structure the financing
in Northstar Gulfsands LLC, conduct active exploration programs in the Gulf of
Mexico and Syria, and continue its business development activity in Iraq and in
particular the Misan Gas Project.

Outlook

In summary, the Company showed strong growth during the first half of 2005.  It
accomplished its objectives of listing the Company's shares for trading on the
AIM in London, and raising adequate capital to consolidate its USA business in
the Gulf of Mexico, expand ownership and assume operatorship of Block 26 in
Syria, and continue its development of the Misan Gas Project in Iraq.  During
the second half of 2005, the Company anticipates completing the re-financing of
its Gulf of Mexico operations, completing its seismic programme in Block 26
Syria, and negotiating the terms and conditions of a definitive contract for the
Misan Gas Project in Iraq.



Gulfsands Petroleum plc and Subsidiaries
Consolidated Profit and Loss Account
For the six months ended 30 June 2005 and 2004,
and year ended 31 December 2004

(in thousands of U.S. dollars except earnings per share)

                                                              Six months ended 30 June          Year Ended
                                                                    2005             2004        31 December
                                                                                                        2004
                                                             (unaudited)      (unaudited)          (audited)

Turnover                                                         26,040            8,947             33,056
Cost of sales                                                   (14,117)          (5,492)           (19,485)
Gross profit                                                     11,923            3,455             13,571

General and administrative expenses                              (3,132)          (1,957)            (4,602)
Write down of goodwill                                              (54)             (53)              (107)
Administrative expenses                                          (3,186)          (2,010)            (4,709)

Operating profit                                                  8,737            1,445              8,862

Investment Loss                                                       -                -               (675)
Interest receivable                                                 447               65                143
Interest payable                                                 (2,761)          (1,425)            (3,477)
Accretion                                                          (843)            (491)            (1,352)

Profit (loss) on ordinary activities before taxation              5,580             (406)             3,501

Tax on profit (loss) on ordinary activities                      (1,038)           1,017              1,038

Profit on ordinary activities after taxation                      4,542              611              4,539

Minority interests                                               (3,006)            (578)            (2,917)

RETAINED PROFIT FOR THE PERIOD                                    1,536               33              1,622

Basic earnings per share                                           0.02             0.01               0.33
Diluted earnings per share                                         0.02             0.00               0.20



Consolidated Balance Sheets
At 30 June 2005 and 2004, and 31 December 2004

                          (in thousands of U.S. dollars)

                                                              30 June 2005     30 June 2004      31 December 2004
                                                               (unaudited)      (unaudited)             (audited)

Fixed assets
    Tangible fixed assets                                          55,993           55,548                56,038
    Intangible fixed assets                                         6,034            2,273                 2,629
    Investments                                                                        463                    -

                                                                   62,027           58,284                58,667
Current assets
    Debtors: amounts falling due within one year                   12,462            9,391                 9,001
    Cash at bank and in hand                                       78,023            7,964                19,579
                                                                   90,485           17,355                28,580
    Creditors: amounts falling due within one year                (12,965)          (6,542)              (18,688)

Net current assets                                                 77,520           10,813                 9,892
Total assets less current liabilities                             139,547           69,097                68,559

    Debtors: amounts falling due after one year                     1,747               -                  1,748

    Creditors: amounts falling due after more than one year       (34,143)         (28,149)              (29,947)
    Provision for liabilities and charges                         (20,808)         (20,521)              (16,427)
    Equity minority interests                                     (10,915)          (6,168)               (7,873)

NET ASSETS                                                         75,428           14,259                16,060

    Share capital                                                  10,000                7                     7
    Share premium account                                          65,289           17,448                17,448
    Revaluation reserve                                                 -             (212)                    -
    Profit and loss account                                           139           (2,984)               (1,395)

SHAREHOLDERS' FUNDS                                                75,428           14,259                16,060



Consolidated Statements of Cash Flow
For the six months ended 30 June 2005 and 2004,
and for the year ended 31 December 2004

(in thousands of U.S. dollars)
                                                                                                         Year
                                                             Six months ended 30 June                   Ended
                                                                     2005            2004         31 December
                                                                                                         2004
                                                              (unaudited)     (unaudited)           (audited)

Net cash inflow (outflow) from operating activities                12,032             434             14,802

Interest received                                                     447              65                143
Interest paid                                                     (2,523)         (1,314)             (2,916)
Net cash outflow from returns on investments and                  (2,076)         (1,249)             (2,773)
servicing of finance

Capital expenditure
Payments to acquire tangible fixed assets                         (4,631)        (17,250)            (22,912)
Payments to acquire intangible fixed assets                       (3,459)           (485)               (895)
Net cash outflow from capital expenditure                         (8,090)        (17,735)            (23,807)

Financing
Issues of ordinary share capital                                   58,297           2,563              1,187
Contributions in subsidiary undertaking                                36             794                160
Issue costs of share capital                                        (464)            (63)                -
Receipts from new loans                                             1,209          28,446             35,236
Repayment of loans                                                (2,500)        (12,825)            (12,825)
Net cash inflow from financing                                     56,578          18,915             23,758
Increase in cash                                                   58,444             365             11,980

Cash at bank and in hand, beginning of period                      19,579           7,599              7,599
Cash at bank and in hand, end of period                            78,023           7,964             19,579

Non-cash investing and financing
Non-cash capital contributions in subsidiary undertaking              -             2,250              2,250
Provision for decommissioning                                         -            17,000             17,000



Notes to the Summary Financial Statements:

The summary financial statements for 31 December 2004 set out above have been
extracted from the Group's audited statements (not presented herein).   The
financials statements for 30 June 2005 and 2004 are unaudited financial
statements prepared by management of the Group.  All financial statements were
prepared under the historical cost convention in accordance with applicable UK
accounting standards and with the provisions of the Companies Act 1985 that
would apply if these were statutory financial statements, except that
consolidated figures only have been presented. In addition to the requirements
of UK accounting standards, the accounting for oil and gas exploration and
production activities is guided by the Statement of Recommended Practice (SORP)
'Accounting for Oil and Gas Exploration, Development, Production and
Decommissioning Activities', issued by the UK Oil Industry Accounting Committee
on 7 June 2001. The financial information has been prepared in accordance with
the provisions of the SORP.

These summary statements do not constitute financial statements in accordance
with UK accounting standards as they omit substantially all the disclosures
required.


Note to Editors

•    Gulf of Mexico, USA

The Group has a 52.6% interest in Northstar Gulfsands LLC, which owns interests
in 39 producing oil and gas fields offshore Texas and Louisiana and operates 8
of those fields. Northstar Gulfsands LLC has proved and probable reserves of
58.1 billion cubic feet of natural gas equivalents, consisting of 28.85 billion
cubic feet of natural gas and 4.88 million barrels of oil as of 30 June 2005.

•    Syria

In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.
The block covers 11,000 square kilometres and surrounds areas which currently
produce over 100,000 barrels of oil per day from existing fields.  The Group
commenced the acquisition of an extensive 2D seismic programme during August
2005 and anticipates the drilling of the first well during the first quarter of
2006. Gulfsands has identified 27 exploitation and exploration prospects and
leads with mean resources potential of 1 billion barrels of recoverable oil.

•    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 is currently
negotiating the definitive contract for the project.  The project will gather,
process and transmit natural gas that is currently a waste by-product of oil
production in the region and will end the environmentally damaging practice of
gas flaring. Gulfsands has completed a feasibility study and expects to conduct
further technical work and commercial discussions with the Iraq Oil Ministry.

•    Onshore USA

Gulfsands operates onshore USA through its subsidiary company Darcy Energy LLC.
Gulfsands recently increased its ownership in Darcy Energy to 80%.  At the Emily
Hawes field, initial gas production commenced in the summer of 2005.  The first
well in the Barb Mag oil field has been drilled and wireline logged with some 38
feet of potential net pay and production tested at 1.5 million cubic feet of
natural gas and 36 barrels of condensate per day.  Production from this well
should commence by October 2005.  Darcy Energy has a 34.375% and 37.5% working
interest in these fields respectively.


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