Khurbet East Development Approval

Gulfsands Petroleum plc

                              Gulfsands
                to develop Khurbet East Oil Discovery

                               Khurbet
  East Field Reserves estimate completed for the Massive Reservoir

London, 5th
February, 2008:  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 approval from  the Syrian Ministry  of
Oil and
Mineral Resources  and  the  Syrian  Petroleum  Company  ("SPC")  for
commercial
development of the Khurbet East Field.
Development of the Cretaceous Massive Reservoir ("Massive Reservoir")
within the Field will commence immediately.

The Khurbet East Oil Field is within
Block 26 in North East Syria.  Gulfsands is
the  operator,  on   behalf  of   the  Block   26  Contractor   group
("Contractor"), and
owns a 50% working interest in Block  26 subject to the terms of  the
Contract
for the Exploration and Development  and Production of Petroleum  for
Block 26
(the "Contract"). A map and details of the Khurbet East Oil Field are
available
on the Company's website: www.gulfsands.net.

The Company has also received the
first Reserves report for the  Massive Reservoir in the Khurbet  East
Field which
estimates gross life-of-field Proved and Probable ("2P") Reserves  of
the
Massive  Reservoir  as   66  million   barrels  of   oil  and   gross
life-of-field Proved,
Probable and Possible ("3P") Reserves as 143 million barrels of  oil.
Gulfsands'
share of net attributable reserves is explained below in the  section
of this
announcement headed "Khurbet East Reserves".

Reserves estimates for the Butmah
Formation and the  Kurrachine Dolomite reservoirs  discovered in  the
KHE-1 well
will be  made  once further  drilling  and appraisal  work  has  been
completed.

The Reserves report was prepared by
independent consultants, RPS Energy Ltd. ("RPS") of London.
The standard used by RPS in preparing its Reserves report was the
SPE/WPC/AAPG/SPEE Petroleum Resources Management System (SPE-PRMS).

The Khurbet East Oil Field was
discovered in the second  quarter of 2007 with  the KHE-1 well.   Two
appraisal wells, KHE-2 and KHE-3 have
since been drilled in the Field.  The
KHE-3 well flowed oil to surface on drill-stem test at
an average stabilized rate of 3,420 barrels of oil per day ("bopd").

Initial Development Plan

Gulfsands and its partners intend to
commence Field development immediately and establish early production
from the
shallow Massive Reservoir  as soon  as an  Early Production  Facility
("EPF") can
be installed at the site, and  prior to any further appraisal of  the
Triassic
discoveries within the Khurbet East Field.

The Company expects that an EPF
capable of  producing some  10,000  bopd can  be operational  by  the
fourth quarter
of 2008 and will  be followed by the  Full Field Development  ("FFD")
facility
installation in 2009.  Production through
the EPF will provide valuable information about reservoir performance
that will
be integrated  into the  design  of the  FFD  facilities as  well  as
generate cash
flow. Engineering  and  construction  of  the  EPF  is  scheduled  to
commence this
quarter with  drilling  of the  first  development well  expected  to
commence
shortly.

Initial modeling of the Massive
Reservoir  shows  that  horizontal  wells  should  provide  the  most
efficient
production method in the Field.
Utilizing horizontal wells, the Company expects that the FFD facility
will be designed to produce some 30,000-40,000 bopd.

As a consequence of the substantial
SPC infrastructure  already  available  in  close  proximity  to  the
Khurbet East
Field and the excellent working relationship the Company enjoys  with
SPC which
has extended to  invaluable assistance  with the  development of  the
EPF, the
estimated costs for  the EPF,  which includes the  drilling of  three
wells and
construction of facilities, are not  expected to exceed $10  million,
or a net $5
million to Gulfsands.  The Company further
anticipates that  the FFD  costs,  including all  future  development
wells within
the Massive Reservoir,  can be  met from the  substantial cash  flows
expected to
be generated by early production from the Field.

Khurbet East Reserves

Gulfsands commissioned RPS in London to provide an
independent Proved,  Probable and  Possible  Reserves report  of  the
Massive
Reservoir in the  Khurbet East  Field as of  31 December  2007.   RPS
estimated gross life-of-field 2P Reserves
of the Massive  Reservoir as  66 million  barrels of  oil with  gross
life-of-field 3P
Reserves totaling 143  million barrels of  oil (see note  1 below).
 These Reserves
are subject to the  terms of the Contract  in which Gulfsands owns  a
50% working
interest.

The net barrels recoverable and
attributable to the Contractor and to Gulfsands (as to its 50% share)
have been
calculated by reference to the terms of the Contract which call for a
royalty
to be paid to the Government of the Syrian Arab Republic and an after
tax
profit share of the oil produced,  to be provided to Gulfsands.   The
Contractor is also entitled to recover
its  costs  through  a  cost   recovery  pooling  of  revenues   from
production. The fiscal
terms of  the Contract  are referred  to in  the Company's  corporate
presentation which
is available on the Company's website.

The Contractor's net attributable
(after  royalties,  taxes  and  government  share)  2P  Reserves  are
estimated at 22.5
million barrels of oil.  The Contractor's
3P Reserves have  been estimated  as 44.8  million barrels  of oil.
Therefore, Gulfsands net attributable (after
royalties,  taxes  and  government  share)  2P  Reserves  have   been
estimated as 11.3
million barrels of oil and  net attributable (after royalties,  taxes
and
government share) 3P  Reserves have  been estimated  as 22.4  million
barrels of
oil.

The RPS Reserves report related only
to the  Reserves  estimates for  the  Massive Reservoir  and  a  full
Reserve report
will be  carried  out  on  both  the  Triassic  Butmah  and  Triassic
Kurrachine
Dolomite Formations  upon  appraisal  of these  formations  which  is
expected to
commence in the second half  of 2008 following first production  from
the Massive
Reservoir.  Until the appraisal of the
Triassic reservoirs  is completed  and a  development plan  prepared,
these
formations have been classified  as containing Contingent  Resources.
Additionally,
the Reserves  estimate  for the  Massive  Reservoir will  be  updated
annually or
more frequently if appropriate.

Gulfsands' CEO, John Dorrier,
said:

"We are very pleased to have
received rapid  approval for  commercial development  of the  Khurbet
East Field
from the Syrian Government.  With the
active cooperation  and support  of  the Oil  Ministry and  SPC,  the
Company and its
partners will  proceed immediately  with development  activities  and
seek to
achieve early  production from  the Field  by the  fourth quarter  of
2008. We are
also very pleased to confirm a substantial reserves estimate for  the
Khurbet
East Field  at this  early  stage of  Field appraisal  following  the
excellent
results obtained in the first three wells in the Field."

Notes:

(1)
RPS based its estimate of reserves on the resource
definitions jointly set  out by  the Society  of Petroleum  Engineers
(SPE), the
World Petroleum Congress (WPC), the American Association of Petroleum
Geologists (AAPG) and the  Society of Petroleum Evaluation  Engineers
(SPEE) in
April 2007  in a  document entitled  "Petroleum Resources  Management
System"
(PRMS).

Reserves are those quantities
of  petroleum   anticipated  to   be  commercially   recoverable   by
application of
development projects to known accumulations from a given date forward
under
defined conditions.

Proved Reserves are those
quantities  of  petroleum,  which,  by  analysis  of  geoscience  and
engineering data,
can  be  estimated  with  reasonable  certainty  to  be  commercially
recoverable, from
a given  date  forward,  from  known  reservoirs  and  under  current
economic
conditions, operating methods, and government regulations.

Probable Reserves are
those  additional   Reserves  which   analysis  of   geoscience   and
engineering data indicate
are less likely to be recovered than Proved Reserves but more certain
to be
recovered than Possible Reserves.

Possible Reserves are
those  additional   Reserves  which   analysis  of   geoscience   and
engineering indicate
are less likely to be recoverable than Probable Reserves.

This release has been approved by
Jason Oden,  Gulfsands Exploration  Manager, who  has a  Bachelor  of
Science degree
in Geophysics with  23 years of  experience in petroleum  exploration
and
management and is  registered as a  Professional Geophysicist.   This
release has also been approved by Rick
Bresler, Gulfsands Vice President of  Project Engineering, who has  a
Bachelor of
Science degree in Chemical Engineering with 29 years of experience in
petroleum
facilities design and construction.  Mr.
Oden and Mr. Bresler have consented to the inclusion of the technical
information in  this release  in the  form and  context in  which  it
appears.


ABOUT GULFSANDS:

Syria
Gulfsands owns a 50% working
interest and is operator of Block 26  in North East Syria.  Block  26
covers approximately 8,250 square
kilometres and encompasses  existing fields  which currently  produce
over 100,000
barrels of oil per day. These fields are operated mainly by the Syria
Petroleum
Company.  In the first half of 2007
Gulfsands announced  an oil  and  gas discovery  on Block  26  called
Khurbet
East.  This discovery is currently under
appraisal with development to commence in 2008 with first  production
targeted
for the fourth quarter of 2008.  On 23
August 2007,  the Company  initiated the  first extension  period  of
exploration on
Block 26 for a further period of three years.
The Company has also formed a strategic partnership with Cham Holding
for acquiring oil and gas projects in Syria
and Iraq.

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  contract
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.

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.

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,   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)                [phone]
Kenneth                                     [phone]
Judge, Director of Corporate Development
Gulfsands Petroleum (Syria)                 [phone]
Mahdi
Sajjad, President

Buchanan Communications Limited (London)    [phone]
Bobby
Morse
Ben
Willey

Landsbanki Securities (UK) Limited (London) [phone]
Jeff
Keating
Tom
Hulme

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