Issue of Equity

Gulfsands Petroleum PLC
23 July 2007

Private placement funds of £11.6 million received



Issue of equity



London, 23rd July, 2007: Further to the announcement of 26 June 2007, Gulfsands
Petroleum plc ('Gulfsands', the 'Group' or the 'Company' - 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 has received
£11.6 million from the private placement of 8 million ordinary shares of 5.714p
each in the Company ('Ordinary Shares') with the Al Mashreq Investment Fund and
Hickham Ventures, at £1.45 per new Ordinary Share.



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 27 July 2007.



Following the issue and allotment of the new ordinary shares the issued share
capital of the Company will be 111,093,750 Ordinary Shares.



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 kilometers 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 Maysan 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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