Khurbet East Drilling Update

For immediate Release
                                                              25
March 2008

                       Gulfsands Petroleum Plc

            First horizontal development well commences in Khurbet
East Field

London, 25th March 2008:   Gulfsands Petroleum plc ("Gulfsands",  the
"Group" or the  "Company" - AIM:  GPX), the oil  and gas  production,
exploration and development company  with activities in Syria,  Iraq,
and the U.S.A., is pleased to announce that the Company has commenced
the drilling of  the first   horizontal development  well within  the
Khurbet East Field ("KHE-5H").  The KHE-5H well will be completed and
suspended as  an  oil  producer  for  connection  through  the  Early
Production Facility ("EPF"), scheduled  to commence operation by  the
fourth quarter of 2008.

The KHE-5H  well  is  designed  to be  drilled  and  completed  as  a
horizontal producer within the Cretaceous Massive Reservoir ("Massive
Reservoir")  in  the  Khurbet   East  Field.    Engineering   studies
undertaken by  the  Company  indicate  that  the  use  of  horizontal
completions will improve well-bore  productivity as well as  increase
ultimate oil recovery from the Massive Reservoir.  The KHE-5H well is
designed to be  drilled to  a total measured  depth of  approximately
2900 metres, which includes a horizontal completion length within the
Massive Reservoir of approximately 700 metres.  The Company estimates
that approximately 60 days are required for the drilling,  evaluation
and completion of the KHE-5H well.

The production  information obtained  from the  KHE-5H well  and  the
vertical production wells within the  Massive Reservoir in the  Field
(KHE-2, KHE-3 and KHE-4)  during the EPF phase  will be valuable  for
planning and optimising  the design and  construction of the  Khurbet
East permanent production facility.

The Company has  plans to  drill at least  one additional  horizontal
production well within the Field in  the near term for tie-in to  the
EPF.  This will provide the Company with 3 vertical and 2  horizontal
producing wells from the Massive Reservoir at Khurbet East during the
EPF stage.

Gulfsands' CEO, John Dorrier, said:

"KHE-5H will  be the  Company's first  horizontal completion  in  the
Khurbet East Field.   The  technology is  widely used  in the  Fields
adjacent to Khurbet East, where it has proven an effective  technique
for maximizing oil recovery and increasing production rates."

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.  Mr. Oden has 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 development 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  48  offshore  blocks   comprising
approximately 168,000 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 Judge, Director of Corporate Development [phone]

Gulfsands Petroleum (Syria)                      [phone]
Mahdi Sajjad, President

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

RBC Capital Markets (London)                     [phone]
Andrew K. Smith
Sarah Wharry

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