Khurbet East 1

Gulfsands Petroleum PLC
04 June 2007


Gulfsands Petroleum PLC



Multi-zone Oil and Gas Discovery at Khurbet East - 1 Well, Syria


•       Triassic aged reservoir flows 478 bopd of 35 degree (API) oil on
        drill-stem test

•       Cretaceous and Tertiary aged oil-bearing reservoirs to be further
        appraised with KHE-2 well


3D seismic survey planned for Khurbet East and surrounding area



London, 4th June, 2007:  Gulfsands Petroleum plc (AIM: GPX)  ('Gulfsands' or 
'the Company'), the oil and gas production, exploration and development company
with activities in the U.S.A., Syria and Iraq is pleased to announce that
drilling and initial testing operations on the Khurbet East ('KHE-1') discovery
well in Syria Block 26, where Gulfsands is operator and owner of 50% interest,
have now been completed after a successful drill-stem test of the deepest
productive reservoir encountered in the well-bore.  KHE-1 will be suspended as a
future oil production well.  After completion of operations on KHE-1, the rig
will move immediately to the KHE-2 appraisal well location.



The KHE-1 well encountered four significant hydrocarbon bearing reservoirs.  The
deepest of these, the Triassic aged Kurrachine Dolomite Formation, flowed oil to
the surface on drill-stem test at a rate of approximately 478 barrels of oil per
day ('bopd') with a gas to oil ratio ('GOR') averaging approximately 2000
standard cubic feet per barrel ('scf/bbl').  Preliminary assessment of the oil
gravity is 35 degrees API.



A summary of the overall results of the KHE-1 well are as follows:


Reservoir                   Net Pay (metres)        Depth  (metres)           Comments
Chilou                      26.4                    1,319                     Core recovered
Massive                     22.5                    1,917                     Oil sample recovered (24.3
                                                                              degrees API)
Butmah                      16.0                    2,850                     Core and natural gas
                                                                              recovered
Kurrachine Dolomite         *                       3,098                     Core recovered and well
                                                                              flowed oil (35 degree API)
                                                                              at 478 bopd



* Logged pay in the Kurrachine Dolomite appears relatively large but is
uncertain due to poor well-bore conditions at this depth.  The drill-stem test
was conducted over a 102 metre interval.





In order to preserve the mechanical integrity of the KHE-1 well-bore as a future
oil producer, the Company will not undertake testing operations of the shallower
pay zones identified in the KHE-1 well-bore using the KHE-1 well-bore.



The Company previously announced that the KHE-2 appraisal well will be drilled
immediately after completion of operations on KHE-1. The KHE-2 appraisal well is
specifically designed to more completely evaluate the Tertiary and Cretaceous
reservoirs (Chilou and Massive respectively) encountered in KHE-1.



The Cretaceous Massive Formation in KHE-1 contains approximately 22 metres of
net oil pay over a 25 metre gross interval based on wireline log interpretation,
reservoir pressures and fluid sample recovery.  The oil in this reservoir has an
API gravity of approximately 24 degrees, based on PVT analysis of the recovered
oil sampled.



The Tertiary Chilou 'B' Formation contained approximately 26 metres of net oil
pay, based on wireline log interpretation.  The KHE-2 well will also provide
further information on the lateral extent and continuity of these reservoirs.
The Company expects the final results from KHE-2 in early August.



An appraisal well for the Triassic aged Kurrachine Dolomite and Butmah
reservoirs encountered in KHE-1 will be required in order to provide additional
information on reservoir extent and continuity, and the Company is therefore
proceeding with plans for the drilling of a second appraisal well as soon as
practicable.



The Company is also finalizing plans for acquisition of a 3D seismic survey over
the Khurbet East structure and surrounds.  These data will aid in the
development of the Khurbet East reservoirs and will be used to select additional
exploration drilling locations in the vicinity of the Khurbet East structure.



Khurbet East Structure



The Khurbet East discovery is a relatively large fault-bound structural
culmination, with closure mapped at multiple reservoir levels. The areal extent
of the structure is approximately 15 square kilometres at the Triassic aged
Kurrachine Dolomite Formation reservoir level.  The KHE-1 discovery well is
located approximately 12 kilometres southwest of the Souedieh Oil Field and 12
kilometres south of the Roumelan Oil Field. There is an existing oil pipeline
that has available capacity.  With the significant existing infrastructure
within the confines of Block 26 and the close proximity to an existing pipeline,
production from Khurbet East may be accelerated with associated early cash flow
from this discovery.



For further information on the KHE-1 discovery, please refer to the Company's
website at www.gulfsands.net.   A brief presentation on the Khurbet East
discovery will be available in the next few days.





Gulfsands' CEO, John Dorrier, said:



'The Company is just concluding its first phase of exploration in Block 26,
having drilled 4 wells and acquired some 1400 km of new 2D seismic in the Block
in only 2 years as operator.  We enter this next phase having made an excellent
discovery at Khurbet East in up to 4 reservoirs.  We are examining the potential
for early commercial development of this discovery as we expect it to have
significant impact on the Company's oil and gas reserves as well as longer term
cash flows. '





NB: This release has been approved by Jason Oden, Gulfsands Exploration Manager,
who has a Bachelor of Science degree in Geophysics with 22 years of experience
in petroleum exploration and management and is registered as a Professional
Geophysicist.  Mr. Oden has consented to the inclusion of the material in the
form and context in which it appears.




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 kilometres 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 Misan 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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