OIL DISCOVERY AT YOUSEFIEH-1

Immediate Release 19 November 2008


                       GULFSANDS PETROLEUM PLC
           OIL DISCOVERY AT YOUSEFIEH-1, BLOCK 26, SYRIA.
        PRODUCTION MILESTONE AT KHURBET EAST OIL FIELD, SYRIA

London, 19th November  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  an  oil discovery  at  the
Yousefieh-1 well  in  the Gulfsands'  operated  Block 26,  Syria.  In
addition, the Company  is delighted  to confirm  that cumulative  oil
production from the Khurbet East Field (the "Field") has now exceeded
one million barrels.
YOUSEFIEH-1 OIL DISCOVERY:
The Yousefieh-1  well, located  approximately 3  kilometres from  the
Khurbet East  Early  Production  Facility in  Block  26,  Syria,  has
encountered 63  metres  of  net  oil pay  in  the  target  Cretaceous
reservoir system  and flowed  oil to  surface under  natural flow  at
approximately 900 barrels of oil per day ("bopd").
Yousefieh-1 well was drilled to a total vertical depth of 2139 metres
and encountered  the  target  Cretaceous  reservoirs  at  a  slightly
shallower  depth  than   the  pre-drill  prediction   and  based   on
preliminary wire-line  log evaluation,  the well  encountered an  oil
column of approximately  64 metres, with  approximately 63 metres  of
net oil pay and average porosity of 18.6%.
A drill  stem  test ("DST")  was  conducted  over the  top  19  metre
interval, flowing oil  to surface  under natural flow  and through  a
48/64 inch choke, at an average rate of approximately 900 barrels per
day over a 3 hour period with  no water produced. While preparing for
the main  flow  period  of  the DST,  the  well  produced,  with  the
assistance of gas  lift, at  an average rate  of approximately  1,450
barrels per day through a 95/64 inch choke over a 3 hour period.  The
preliminary  results  of  the  test  indicate  very  good   reservoir
permeability.
Preliminary  well  site   analyses  indicate  the   oil  gravity   is
approximately 23 degrees API, similar to the on-site analysis carried
out upon discovery  of oil  at KHE-1. Core  recovery operations  were
successfully completed  over the  entire reservoir  interval and  the
information obtained from  these cores, together  with the  wire-line
log  information  and  results  of  the  DST  will  provide  valuable
information for the further appraisal of this discovery.
The Yousefieh-1 well was an  exploration well designed to evaluate  a
stratigraphic trap in this portion of Block 26 unlike the  structural
trap of the Khurbet  East Field. The  Company is currently  preparing
plans to undertake an extensive 3D seismic data acquisition programme
to assist in  the delineation  of leads  and prospects  in the  areas
surrounding the Khurbet East Field and the Yousefieh-1 discovery.
The Yousefieh-1 well will now be  suspended and the rig moved to  the
Khurbet East Field to  drill a delineation well  at the north end  of
the Khurbet East  Field with the  aim of establishing  the oil  water
contact and  also with  the potential  to be  used later  as a  water
disposal well. A more extensive production testing programme over the
reservoir section of the  Yousefieh well is  expected to commence  in
the next few weeks.
KHURBET EAST FIELD, BLOCK 26, SYRIA:
Production of oil  from the  Khurbet East  Field has  just passed  an
important milestone with  confirmation over the  recent weekend  that
production from the Field has passed a cumulative one million barrels
since  the  commencement  of  production  in  July  from  the   Early
Production Facility built  in cooperation with  the Syrian  Petroleum
Company.
The Khurbet  East  Field  is  continuing  to  average  production  of
approximately 11,500 bopd from 5  wells (2 horizontal and 3  vertical
producers) with only trace amounts  of water. Pressure monitoring  of
the producing  wells indicates  there continues  to be  only  minimal
reservoir pressure reduction.
As a  consequence of  the  better than  expected performance  of  the
Khurbet East Field,  the Company is  anticipating a re-evaluation  of
the Khurbet East Field reserves which will be undertaken by RPS Group
Plc as of year-end 2008, with results expected in Q1 2009.
Gulfsands' CEO, Ric Malcolm, commented:
"The discovery  of  oil at  Yousefieh-1  in  a new  play-type  is  an
exciting and significant outcome for the Company and provides  strong
encouragement  for  future  exploration.   This  is  the  second  oil
discovery to be made  in Block 26 within  two years and  demonstrates
it's very prospective nature.  The first discovery at Khurbet East is
consistently producing  at high  rates through  the early  production
facility and we are proud of our achievement in having produced  more
than one million barrels  of oil since  production commenced back  in
July. The close proximity of  the Yousefieh oil discovery to  Khurbet
East, together with the high quality reservoir encountered,  provides
encouragement for  an  early  declaration of  commerciality  on  this
discovery."
This release has been approved by Richard Malcolm, Chief Executive of
Gulfsands Petroleum  Plc who  has  a Bachelor  of Science  degree  in
Geology with  29 years  of experience  in petroleum  exploration  and
management. Mr.  Malcolm  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
Ben Willey

RBC Capital Markets (London)                     [phone]
Sarah Wharry
Brett Jacobs


ABOUT GULFSANDS:
Gulfsands is listed on AIM.
Syria
Gulfsands owns a 50% working interest and is operator of Block 26  in
North  East  Syria.   The  Khurbet  East  oil  field  was  discovered
following the completion of drilling of  the KHE-1 well in June  2007
and  commenced  commercial  production   within  13  months  of   the
discovery. This  field is  currently producing  approximately  11,500
barrels of  oil per  day through  the Khurbet  East Early  Production
Facility  (EPF).   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.   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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