Operations Update

Immediate Release 16 June 2009 GULFSANDS PETROLEUM PLC OPERATIONS UPDATE London, 16th June 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 that drilling operations on the KHE-10 horizontal well ("KHE-10") have been successfully completed and the well will be tied into the Khurbet East Early Production Facility ("EPF"). Production from this well is expected to commence in July. The KHE-10 well was spudded on 21st May at a surface location approximately one kilometre south of KHE-1, the original Khurbet East discovery well. KHE-10 is the second of three development wells planned to support the expansion of the Khurbet East EPF. The well was drilled to a total measured depth of 2329 metres or 1926 metres true vertical depth (TVD) and encountered the top of the oil bearing Cretaceous Massive reservoir at 1,927 metres consistent with the pre-drill prediction. A horizontal section of approximately 260 metres of Cretaceous Massive Formation was penetrated within the uppermost part of the reservoir with properties consistent with reservoirs evaluated in the other high performance wells in the central portion of the Khurbet East Field. Tie-in operations will now commence on KHE-10 and the previously drilled KHE-9 well with production from these wells expected to begin during July coincident with the completion of the expansion of the Khurbet East EPF. As the KHE-10 well will be tied into the production facility immediately, a drill-stem test of the well was not undertaken. The drilling rig will now move on to drill KHE-11, the third well in the current three well development drilling programme. Ric Malcolm, Gulfsands CEO, said "The successful and timely drilling of the first two development wells within high quality oil bearing reservoir keeps plans on track for oil production through the Early Production Facility to be increased from the current rate of approximately 10,700 barrels of oil per day and achieve the year end target rate of 16,000 barrels of oil per day." 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 production rate of approximately 10,800 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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