Operations Update

Immediate Release 22 October 2009 GULFSANDS PETROLEUM PLC Operations Update: Yousefieh 3 Appraisal Well Intersects 49 Metre Net Oil Column and Flows Oil Khurbet East 12 Delineation Well Completed Khurbet East Gross Oil Production Reaches 5 million Barrels London, 22nd October 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 update on the Company's operations at Block 26, Syria where Gulfsands holds a 50% interest and acts as operator. Yousefieh 3 Appraisal Well Intersects 49 Metre Net Oil Column and Flows Oil The Yousefieh 3 vertical appraisal well, located approximately 500 metres to the south-east of the Yousefieh 1 discovery well, encountered the top of the Cretaceous Massive Formation at a measured depth ("MD") of 1946 metres (1530 metres true vertical depth sub surface ("TVD SS")) and was drilled to a total depth of 2056 metres MD (1640 metres TVD SS). Preliminary interpretation of drilling data and wireline logs has identified a gross oil column within the well-bore of 60 metres with a net pay of 49 metres having an average porosity of 19.5% and an oil-water contact at 1590 metres TVD SS, consistent with that seen at Yousefieh 1 and 2. An open-hole drill-stem test was conducted over the interval 1946-1985 metres MD. Yousefieh 3 flowed naturally at an average rate of 226 stock tank barrels per day of 24-25 degree API oil for 9 hours on a 32/64" choke setting. No formation water was produced during this flow period. Analysis of this well test indicates that a component of this reduced oil flow rate when compared to Yousefieh 1 is the result of formation damage sustained during drilling and coring operations. The reservoir section will be subjected to an acid stimulation at a later date with the objective of improving flow performance. The well will now be completed as a potential future production well with the running of a 7" liner over the reservoir section. Khurbet East 13 Development Well Following the completion of operations at Yousefieh 3, the rig will move to the Khurbet East field to drill Khurbet East 13 ("KHE-13"), a vertical production well to be located approximately 600 metres southwest of the Khurbet East 9 development well. Khurbet East 12 Drilling and Testing Operations Completed Khurbet East 12 ("KHE-12"), located 3.2 kilometres south of the Khurbet East 8 well, the previous southern most well in the Khurbet East field, was drilled as a delineation well to determine the southern extent of the field and identify the field oil-water contact. Extended flow testing operations have recently been completed on KHE-12. Oil was confirmed to be present within a 6 metre section of core recovered from the top of the reservoir interval but the well did not flow oil to surface in the presence of artificial lift and acid stimulation. Formation water only was produced during testing of a net reservoir interval of 10 metres and initial interpretation of this flow test result is that the oil observed in KHE-12 core is residual and lies beneath the Khurbet East field oil-water contact. The field oil-water contact is now assessed as being located at a depth shallower than the top of the Cretaceous Massive reservoir encountered in KHE-12 at 1592 metres TVD SS, but deeper than 1570 metres TVD SS, the lowest level of oil production from Khurbet East as recorded in well KHE-8. The result of this well will be incorporated into an assessment of field reserves which is scheduled to be completed during the first quarter of 2010. KHE-12 is now expected to be used as a future water disposal well. Khurbet East Field Oil Production Cumulative gross oil production from the Khurbet East field has reached 5 million barrels with minimal water production and little pressure depletion being observed to date. Average daily gross oil production during the month of October is in excess of 17,000 barrels per day. Ric Malcolm, Gulfsands CEO, said "The successful outcome of the Yousefieh 3 appraisal well will now enable the Company to proceed shortly with an application for commercial development of the Yousefieh field. We continue to be very pleased with the excellent production performance of the Khurbet East field and on reaching another important milestone of 5 million barrels gross production. Additionally, the results from the Khurbet East 12 well have enabled us to identify the southern extent of the field and to further narrow down the depth of the field oil-water contact." 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 Richard 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 4667 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 an average gross production rate of approximately 17,000 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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