Issue of Equity

Gulfsands Petroleum PLC
18 May 2006

18 May 2006

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

Issue of Equity

The Board of Gulfsands announces that options have been exercised by two former
non-executive directors in respect of 250,000 ordinary shares of 5.714p in the
Company ('Ordinary Shares') under the Gulfsands Petroleum plc 2005 Share Option
Plan at an exercise price of 130 pence each.

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 23 May 2006.

Following the allotment of the new ordinary shares the issued share capital of
the Company will be 93,481,250 Ordinary Shares.


Enquiries:

 Gulfsands Petroleum (Houston)                           001-713-626-9564
 David DeCort, Chief Financial Officer



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