Khurbet East Field Development Update

First Khurbet East development well successfully completed

Horizontal development well scheduled to commence in Khurbet East

London, 6th 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
successfully completed  the drilling  of its  first development  well
within the Khurbet East Field ("KHE-4") following the recent approval
by the  Syrian Government  for the  development of  the Khurbet  East
Field.

The KHE-4 well was  drilled to a total  depth of approximately  1,935
metres, and the top of the reservoir section was encountered within 3
meters of the pre-drill prognosis.   The well has now been  completed
and suspended as a future oil  producer, and will be brought on  line
when the  Khurbet  East  Early Production  Facility  is  operational,
scheduled to commence by  Q4 2008.  As  planned, the Company did  not
undertake a drill-stem  test with  this well  as the  tests from  the
KHE-2 and KHE-3 wells provide sufficient information for the vertical
wells in this portion of the Field.  As previously announced, a drill
stem test  on  the  KHE-3  appraisal  well  produced  at  an  average
stabilized rate of 3,420 bopd with 206,000 cubic feet of natural  gas
per day.

The KHE-4 well is the first development well within the Khurbet  East
Field, and is designed to deliver oil production from the  Cretaceous
Massive Formation reservoir.  KHE-4  is a vertical well located  near
the currently mapped crest of the structure.

Drilling operations on  KHE-4 were  completed ahead  of schedule  and
under budget,  which  is  a significant  achievement  for  the  first
development well in  the Field.   The  next development  well in  the
Field, KHE-5H,  is  designed  and  will be  completed  as  the  first
horizontal well within  the Massive Formation  reservoir.    Drilling
operations on KHE-5H are expected to commence in mid-March 2008.

Gulfsands' CEO, John Dorrier, said:

"KHE-4 is the first development well  in the field.  We have  planned
an aggressive  programme of  drilling and  early production  for  the
balance of  2008, and  look forward  to updating  the market  on  its
progress."


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  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 Judge, Director of Corporate Development [phone]

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

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

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

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