Issue of Equity

Gulfsands Petroleum PLC
24 October 2007

Issue of equity and Director's Dealing



London, 24th October, 2007: Gulfsands Petroleum plc (the 'Company' - AIM: GPX),
the oil and gas production, exploration and development company with activities
in the U.S.A., Syria and Iraq announces that the Company has issued and allotted
85,000 ordinary shares of 5.714p each in the Company ('Ordinary Shares') to
Nordman Continental S.A. ('Nordman') at the direction of Mr. Mahdi Sajjad, a
Director and the Company's President, at a subscription price of 145p per new
Ordinary Share (the 'Issue').



Mr. Sajjad has subscribed for these new Ordinary Shares through the reinvestment
of a bonus payment made by the Company in recognition of Mr. Sajjad's
considerable contribution to the development of the Company's business
opportunities in the Middle East.



Following the Issue, Nordman is interest in 8,141,875 Ordinary Shares which
equates to 7.32% of the enlarged issued share capital of the Company.



Nordman is owned by the trustee of a discretionary trust under which Mr.
Sajjad's children are interested.



The new Ordinary Shares will rank pari passu with the existing Ordinary Shares
of the Company and have been allotted and issued credited as fully paid.



Application has been made for the new Ordinary Shares to be admitted to trading
on AIM and dealings are expected to commence on or around 24 October 2007.



Following the issue and allotment of the new ordinary shares the issued share
capital of the Company will be 111,178,750 Ordinary Shares.



For further information, 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

Landsbanki Securities (UK) Limited (London)                  020-7426-9000
Jeff Keating / Tom Hulme (Corporate Finance)




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