Operations Update

Immediate Release 6 May 2009 Gulfsands Petroleum plc OPERATIONS UPDATE London, 6th May 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 provide the following operations updates. * Drilling of the KHE-9 development well in the Khurbet East Field has been completed, and the well flowed oil at an average stabilized rate of approximately 3040 barrels of oil per day ("bopd") on an open-hole drill stem test ("DST") of the Massive Formation. * Expansion of Khurbet East Early Production facility remains on track for commissioning in June 2009 * Acquisition of the large 3D seismic programme in Block 26 is approximately 90% complete, with acquisition completion expected on schedule during May 2009. Delivery of the final processed data is expected during the third quarter of 2009. * Resumption of gas production at Eugene Island 57 in the Gulf of Mexico has been deferred until at least August 2009 due to delays in repairs to third party infrastructure. KHE-9 Development Well The KHE-9 well located approximately one kilometre south of KHE-1 was spudded on 9th April as the first of three development wells planned to support the expansion of the Khurbet East Early Production Facility (EPF). The well was drilled to a total depth of 1986 metres and encountered the top of the Cretaceous Massive reservoir at 1,937 metres. Preliminary analysis of the wire-line logs and drilling data indicates that the well encountered a 26 metre gross (23 metre net) oil-bearing interval within the Massive reservoir with average porosity of approximately 22% over the net oil-bearing section. The KHE-9 well was tested in an open-hole DST over the gross reservoir interval. Over the final 12 hours of a 24 hour test period and under natural flow, the well flowed at an average stabilized oil rate of approximately 3040 bopd through a 48/64 inch choke, with a bulk sediment and water content of 3-4% and excellent Flowing Tubing Head Pressure of approximately 220 psi. Preliminary analysis of the test and wire-line data indicates very good reservoir permeability, consistent with the existing wells in the central portion of the Khurbet East Field. This vertical well will now be completed as a production well and will then be tied-in to the Khurbet East Early Production Facility ("EPF"). After completion of operations on KHE-9, the rig will commence drilling of the KHE-10 development well. As has been the case with all wells drilled within the Khurbet East Field, a definitive oil-water contact was not identified in this well as the primary reservoir section lies directly above a relatively impermeable and low porosity section. Expansion of Khurbet East Early Production Facility The expansion of the capacity of the EPF to 18,000 barrels per day is proceeding on schedule with commissioning of the new equipment expected to commence in June with production start-up expected early in the third quarter. Exploration 3D Seismic Programme Acquisition of the 850 square kilometre 3D seismic programme in Block 26 continues on schedule with acquisition of data over approximately 90% of the total programme area now completed. The Company expects that the current acquisition rate will be maintained and that the programme will be completed in mid May 2009. Delivery of final processed data is expected late in the third quarter of 2009, with interpretation of these data to commence immediately thereafter. Eugene Island 57 Gas Production Due to further delays in repairs to the third party owned gas sales pipeline, resumption of gas production from the Eugene Island 57 Field in the Gulf of Mexico has been deferred until at least August 2009. The Company had previously anticipated that repairs to this pipeline would be completed during May. Production from the Field has been shut in since immediately prior to Hurricane Ike in September 2008 and immediately after tie-in operations on two new wells which were completed in August 2008. Ric Malcolm, Gulfsands CEO, said "We are very pleased with the results of the KHE-9 well as it indicates a southern extension of the highly productive central portion of the Khurbet East Field and will shortly provide an incremental increase in production when the expanded EPF has commenced operations. We are also pleased with excellent progress made on the acquisition of the large 3D seismic programme in Block 26 and look forward to receipt of the final processed data later this year. The further delay to restoration of gas production at Eugene Island 57 in the Gulf of Mexico is disappointing, but we look forward to resumption of gas production on this field later this 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) +44 (0)20 7434 6060 Ric Malcolm, Chief Executive Officer Kenneth Judge, Director of Corporate Development +44 (0)7733 001 002 & Communications Buchanan Communications Limited (London) +44 (0)20 7466 5000 Bobby Morse/Ben Romney RBC Capital Markets (London) +44 (0)20 7653 4804 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 currently producing approximately 11,000 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 mmbbls. 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 mmboe. 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 ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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