Khurbet East Update

Immediate Release 13 May 2008

 
                                   
                       Gulfsands Petroleum plc
 
 First horizontal development well successfully completed in Khurbet
                             East Field
 
London, 13th  May 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 completed
the drilling  operations on  the first   horizontal development  well
within the Khurbet  East Field  ("KHE-5H").  The  KHE-5H well,  which
flowed oil to surface at an average  rate of 2041 barrels of oil  per
day ("bopd") through a 3/8"  choke, has been completed and  suspended
as  the  fourth  oil  producer  for  connection  through  the   Early
Production Facility ("EPF"), scheduled  to commence operation by  the
fourth quarter of 2008.
 
The KHE-5H  well  was designed  to  be  drilled and  completed  as  a
horizontal producer within the Cretaceous Massive Reservoir ("Massive
Reservoir") in the Khurbet East Field.  The top of the reservoir  was
encountered within 1 metre of the pre-drill estimate and the well was
drilled through a total horizontal  section of 300 metres within  the
reservoir.  The well flowed oil to surface at an average rate of 2041
bopd through  a 3/8"  choke during  the final  6 hour  flow  period. 
Analyses of data  from bottom-hole gauges  indicate that these  rates
were achieved  with  less  than  10  psi  pressure  drawdown  at  the
reservoir.  Preliminary  analysis  of  the  downhole  pressure   data
indicates the  same excellent  reservoir properties  as seen  in  the
other Khurbet East wells. 
 
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' Executive Chairman, Andrew West, said:
 
"We are pleased with  the results achieved  from the Company's  first
horizontal development well which continues our record of  successful
drilling of the Khurbet  East oil field.   With a further  horizontal
well to  be spudded  imminently, Gulfsands  is on  track to  commence
commercial production later this year."
 
 
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.
 
For more information please contact:

Gulfsands Petroleum (London)                     [phone]
Kenneth Judge, Director of Corporate Development [phone]
                                                  
Buchanan Communications Limited (London)         [phone]
Bobby Morse                                       
Nick Melson                                       
                                                  
RBC Capital Markets (London)                     [phone]
Andrew K. Smith                                   
Sarah Wharry

 
 
ABOUT GULFSANDS:
 
Gulfsands is listed on AIM.
 
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. 
 
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 2007 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 2007  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.
 
More  information   can   be   found   on   the   Company's   website
www.gulfsands.net.

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