Operations Update

Immediate Release  6  August 2009

GULFSANDS PETROLEUM PLC


OPERATIONS UPDATE:
EARLY PRODUCTION FACILITY EXPANSION COMPLETED
KHURBET EAST PRODUCTION EXCEEDS 14,700 BOPD
WORKOVER PROGRAMME COMMENCES

London, 6th August 2009:   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 the successful completion  of
the expansion of the  processing capacity at  the Khurbet East  Early
Production Facility ("EPF") to approximately 18,000 barrels of  fluid
per day and to  provide the following update  on operations at  Block
26, Syria.
EXPANSION OF BLOCK 26 EARLY PRODUCTION FACILITY
The planned expansion of the Khurbet East EPF has been completed with
the EPF now capable of handling approximately 18,000 barrels of fluid
per day ("bfpd").
Tie-in operations have also been concluded on the previously  drilled
KHE-9 and KHE-10 production wells  coincident with the completion  of
the expansion of the EPF, with the result that gross daily production
from the Khurbet East Field  has increased from approximately  10,730
barrels of  oil  per  day  ("bopd")  during  the  month  of  June  to
approximately 14,700  bopd.  The KHE-9 well  is currently flowing  at
approximately  2,100   bopd   and   KHE-10   well   is   contributing
approximately 1,900 bopd. As with  the other production wells in  the
Khurbet East Field, these new  wells are flowing oil with  negligible
associated water cut.
Drilling operations  on the  KHE-11 horizontal  well ("KHE-11")  have
also recently been successfully concluded, and this well is  awaiting
tie-back to the EPF. The  KHE-11 well was spudded  on 20th June at  a
surface location approximately 700 metres to the east of the  Khurbet
East discovery well KHE-1. KHE-11  is the third of three  development
wells planned to support the expansion of the Khurbet East EPF.
The KHE-11 well was drilled to a total measured depth of 2235  metres
or 1962 metres true vertical depth ("TVD") and encountered the top of
the oil bearing Cretaceous  Massive reservoir at  1945 metres TVD.  A
horizontal section of approximately  60 metres of Cretaceous  Massive
Formation  was  penetrated  within  the  uppermost  portion  of   the
reservoir. Reservoir properties encountered  in the KHE-11  well-bore
are consistent with those in the other high performance wells in  the
central  portion  of  the  Khurbet  East  Field,  and  this  well  is
anticipated to produce oil at  similar rates to the other  production
wells located near the structural crest of the Field.
KHURBET EAST FIELD DELINEATION WELL
The drilling rig has now moved on to drill well KHE-12, a delineation
well located near  the currently  interpreted southern  limit of  the
Khurbet East structure. KHE-12 is  located some 3.2 kilometres  south
of the previous delineation well KHE-8, which encountered a full  oil
column.  The objective of  KHE-12 well is  to provide structural  and
stratigraphic information  which may  lead to  the extension  of  the
Khurbet East Field into  the southern tip of  the Khurbet East  fault
block structure and to locate  the field-wide oil-water contact.  The
KHE-12 well was spudded  on 1st August,  and drilling operations  are
expected to be completed within approximately 45 days.
WELL WORKOVER PROGRAMME COMMENCES
Operations  have  commenced  this  week  on  a  three-well   workover
programme using  a recently  contracted  workover rig.  The  multiple
objectives of  the  planned workover  programme  are to  prepare  the
Yousefieh-1 well as a future producer from the Yousefieh Field and to
establish continuous oil production  to surface from the  Yousefieh-2
and KHE-7  wells  which were  drilled  as delineation  wells  on  the
Yousefieh and Khurbet East Fields, respectively.
Wireline logs and core samples  taken from the Yousefieh-2 and  KHE-7
wells suggest that the oil bearing  reservoirs in these wells are  of
relatively poor quality and  as such the oil  volumes that have  been
encountered at these well locations  are not currently classified  as
reserves.  However,  a  successful  outcome  from  the  workovers  of
Yousefieh-2 and KHE-7  wells may  lead to  additional reserves  being
identified.
The  workover  programmes  will   involve  well  testing   operations
inclusive of  acid  stimulation  and  artificial  lift  if  required.
Previous open hole testing conducted  on the Yousefieh-2 well  during
drilling operations recovered oil to  surface in the absence of  acid
stimulation, but in sub-commercial quantities.
Workover operations will initially  commence on the Yousefieh-2  well
and be  followed by  the  Yousefieh-1 well  where a  remedial  cement
operation will be carried  out. Following completion  of work on  the
Yousefieh wells the  workover rig  will then  move to  KHE-7 well  to
commence testing operations.
Ric Malcolm, Gulfsands CEO, said
"The impressive  performance from  new development  wells at  Khurbet
East has resulted in an increase  in field production from 10,700  to
in excess of 14,700 bopd. With production well KHE-11 yet to come  on
stream, we remain on track to achieve our target of producing  16,000
bopd by the end of the year."
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]
Richard Malcolm, Chief Executive Officer          [phone]
Kenneth Judge, Director of Corporate Development
& Communications

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

RBC Capital Markets (London)                      [phone]
Sarah Wharry

ABOUT GULFSANDS:
Gulfsands is listed on the AIM market of the London Stock Exchange.
Syria
Gulfsands owns a 50% working interest and is operator of Block 26  in
North East Syria.  The Khurbet East oil field was discovered in  June
2007 and  commenced commercial  production within  13 months  of  the
discovery.  This  field  is  producing   at  a  production  rate   of
approximately  14,700  barrels  of  oil  per  day  through  an  early
production facility.  Block  26  covers  approximately  8,250  square
kilometres and encompasses  existing fields  which currently  produce
over 100,000 barrels of oil per  day, and are operated mainly by  the
Syrian Petroleum Company.  The current exploration license expires in
August 2010 and is  extendable for a  further two years.   Gulfsands'
working interest 2P reserves in Syria  at 31 December 2008 were  35.2
million barrels of oil.
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, following completion of a feasibility study on the project, and
is negotiating details of a  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.  The Company  is
actively  engaged  in  discussions  with  respect  to  financing  and
potential equity partners.  Gulfsands has no reserves in Iraq.
Gulf of Mexico, USA
The Company  owns interests  in  44 blocks  comprising  approximately
138,000 gross acres  offshore Texas and  Louisiana, which include  30
producing oil  and  gas  fields  with  proved  and  probable  working
interest reserves at 31 December 2008  of 5.1 million barrels of  oil
equivalent.
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.com

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