Placing

Gulfsands Petroleum PLC
26 June 2007

Placing of new ordinary shares to raise £11.6m



London, 26th June, 2007: The Directors of Gulfsands Petroleum plc (the 'Company'
or 'Gulfsands' AIM: GPX), the oil and gas production, exploration and
development company with activities in the U.S.A., Syria and Iraq are pleased to
announce an agreement for the placing of 8 million new ordinary shares of 5.714p
each in the Company ('Placing Shares') at £1.45 per Placing Share to the Al
Mashreq Investment Fund and Hickam Ventures, representing a total investment in
the Company of £11.6 million.



The Al Mashreq Investment Fund is controlled by interests associated with Mr.
Rami Makhlouf, Chairman and Chief Executive of the Ramak Group and one of
Syria's most prominent businessmen with extensive business interests in a number
of sectors including telecommunications, hotels, real estate development,
leisure and retail and duty free shopping. The Al Mashreq Investment Fund has
agreed to subscribe for 7 million Placing Shares representing an investment in
the Company of £10.15 million.



Hickam Ventures represents interests associated with Mr. Nizar Assaad, Chairman
and Chief Executive of Lead Contracting and Trading Group which is Syria's
largest oil field services group with divisions handling civil and general
engineering and the construction and design of power plants, oil and gas
production facilities and petrochemical plants across the Middle East and North
Africa. Lead's international clients include Total, Conoco-Phillips, BP-AMOCO,
Sonatrach, Stat Oil, Qatar Petroleum and the Syria Gas and Petroleum Production
Company. Hickam Ventures has agreed to subscribe for 1 million Placing Shares
representing and investment in the Company of £1.45 million.



Completion of the subscription for the Placing Shares by the Al Mashreq
Investment Fund and Hickam Ventures is anticipated to occur on or about 16 July
2007 following which application will be made for the Placing Shares to be
admitted to trading on AIM.



Gulfsands' Chairman, Andrew West and its CEO, John Dorrier, said:



'We are very pleased to welcome Mr. Makhlouf's and Mr. Assaad's companies as
substantial shareholders in our Company and thank them for this significant
expression of confidence in Gulfsands.



These funds will assist us to accelerate our activities in Syria including the
evaluation of the future development of our recent oil and gas discovery at
Khurbet East.'





ABOUT GULFSANDS:



Gulf of Mexico, USA

The Company owns interests in 54 offshore blocks comprising approximately
193,000 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 2006 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 2006 of 3.1 BCFGE (0.5 MMBOE), consisting of 2.8 BCFG and 57,000
barrels of oil.



Syria

Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria.  Block 26 covers 11,000 square kilometres and encompasses existing fields
which currently produce over 100,000 barrels of oil per day. These fields are
operated by third parties including the Syria Petroleum Company.



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 contracts 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.





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.



For further information including the Company's recent investor presentation,
please refer to the Company's website www.gulfsands.net or contact:




Gulfsands Petroleum (Houston)                                + 1-713-626-9564
John Dorrier, Chief Executive Officer
David DeCort, Chief Financial Officer

Gulfsands Petroleum (London)                                 020-7182-4016
Kenneth Judge, Director of Corporate Development             07733-001-002

College Hill (London)                                        020-7457-2020
Nick Elwes
Paddy Blewer

Teather & Greenwood (London)                                 020-7426-9000
Tom Hulme (Corporate Finance)
Tanya Clarke (Specialist Sales)












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