Oil Production Commences at Khurbet East Field

Immediate Release 22 July 2008

Gulfsands Petroleum plc
Oil Production Commences at Khurbet East Field

London, 22nd July 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 production of oil commenced at the
Khurbet East Early Production Facility ("EPF") in Block 26, Syria on
21st July 2008.

This early commencement of oil production follows the fast tracking
of construction of an EPF for the Massive Reservoir in the Khurbet
East Field. The discovery well for the Khurbet East field, KHE-1,
completed operations in June 2007.

Gulfsands, the Operator of Syria Block 26 and Dijla Petroleum Company
("DPC"), the jointly owned company established with Syria Petroleum
Company ("SPC") to act as the "joint operating company" under the
terms of the Production Sharing Contract for Block 26, completed the
EPF less than six months after the receipt of approval from the
Syrian Petroleum Company and the Government of Syria for the
development of the Khurbet East Field (see announcement 13th
February, 2008). The commencement of production of oil is several
months ahead of the development schedule contemplated at that time.
The first well brought into production is KHE-4, one of the three
vertical wells to be tied into the EPF. The Company is now proceeding
with un-loading and kick-off operations of the two horizontal wells
(KHE-5H and KHE-6H) and will follow with the two remaining vertical
wells (KHE-2 and KHE-3). The Company expects that it will take
several weeks to complete these operations.
The Company will provide an update on production once all these
operations are completed and production rates have stabilised.
Commenting on this important production milestone, Andrew West,
Chairman of Gulfsands said:
"From discovery to production within this timeframe reflects the
considerable abilities of our technical team and the high level of
co-operation with the Government of Syria and Syria Petroleum
Company. With production from Khurbet East having started well ahead
of schedule, which will ramp up as we tie in additional wells, we
look forward to further developing the other opportunities in Block
26 in what is a highly prospective and proven hydrocarbon system in
Syria."

For more information please contact:

Gulfsands Petroleum (London) [phone]
Kenneth Judge, Director of Corporate Development [phone]

Jon Bey, Investor Relations: North America + 1 866 689 2599

Buchanan Communications Limited (London) [phone]
Bobby Morse
Robin Haddrill

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. 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. 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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