Reserves Report

Gulfsands Petroleum PLC
30 January 2006

30 January 2006



Gulfsands Petroleum PLC
('Gulfsands' or 'the Group')


Gulfsands Announces Reserves Report for Tigris Structure on Block 26, Syria


Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
is pleased to announce that an independent reserves study has been completed by
Ryder Scott Company, L.P. on the Tigris structure in Block 26, Syria.


Highlights


As the operator and having a 50% working interest in Block 26, Syria, Gulfsands
engaged Ryder Scott Company, L.P. (Ryder Scott), an independent petroleum
engineering firm, to conduct a reserves study based on the results of a well
drilled on the Tigris structure in 1994 and 3D seismic data over the structure.
Ryder Scott developed two cases for this evaluation, an oil case and a gas case,
as there is not sufficient data available at this time to determine the expected
hydrocarbon fluid contained within the Tigris structure.   This reserves study
as of 1 January 2006 classified recoverable Probable and Possible Reserves and
Prospective Resource as follows:


•         For primarily a natural gas accumulation, Ryder Scott has classified
442 BCFG as Probable Reserves, 442 BCFG as Possible Reserves, and a further 3447
BCFG as a Prospective Resource.  In summary total reserves potential among
Probable, Possible and Prospective Resource is 4330 BCFG (722 MMBOE).


•         For primarily an oil accumulation, Ryder Scott has classified 104
million barrels of oil and 64 BCFG as Possible Reserves and a further 408 MMBO
and 245 BCFG as a Prospective Resource.  In summary total reserves potential
among Possible and Prospective Resource is 512 MMBO and 308 BCFG (combined 563
MMBOE).



The study identified nine potentially productive zones within Palaeozoic age
reservoirs in the existing well bore.


Gulfsands has signed a Letter of Intent with a drilling contractor to drill a
well on the Tigris structure.  Gulfsands plans to commence drilling this well in
August 2006.


Block 26 Reserves


Subsequent to increasing Gulfsands' working interest to 50% and becoming the
operator of Block 26, the Group conducted a detailed review of the six wells
previously drilled to test Palaeozoic reservoirs within the Block.  From this
work, Gulfsands concluded that three of the wells encountered potentially
commercial hydrocarbon accumulations, based on drilling and independent wireline
log evaluation.  The largest of these probable accumulations, the Tigris
structure, is found beneath the Souedieh Field, the largest oil field in Syria
with estimated reserves of some 2 billion barrels of oil recoverable
(approximately 1.3 billion barrels of oil produced to date).  Gulfsands'
Production Sharing Contract in Block 26 includes oil and gas rights to
Palaeozoic age reservoirs beneath all of the existing fields within Block 26,
such as the Tigris structure, and oil and gas rights to all depths in areas
outside of the existing producing fields.



Gulfsands engaged Ryder Scott to prepare an independent reserves study of the
Tigris structure to quantify and classify reserves conforming to the definition
approved by the Society of Petroleum Engineers and the World Petroleum Congress.
The data used for the study includes wireline logs from a well drilled to the
Palaeozoic in the Tigris structure in 1994, and a 3D seismic survey available
over the Souedieh Field.  Ryder Scott developed two cases for this evaluation,
an oil case and a gas case, as there is not sufficient data available at this
time to determine the expected hydrocarbon fluid contained within the Tigris
structure.    Reserves and resource figures in this announcement are stated in
BCFG (billions of cubic feet of natural gas), MMBO (millions of barrels of oil)
or MMBOE (millions of barrels of oil equivalent, where six thousand cubic feet
of natural gas is equivalent to one barrel of oil).



The Tigris structure is of a significant size, potentially as large as some 75
square kilometres, and only one well bore currently exists on the structure. It
is difficult to assess the full reserve potential within Proved, Probable and
Possible Reserves at this time.  However, based on the data that are currently
available, the Ryder Scott report concludes that there are nine potentially
productive zones contained within Palaeozoic age reservoirs found in the
existing well bore on the Tigris structure. The report classifies 883 BCFG as
Probable and Possible Reserves if the Tigris structure is primarily a natural
gas accumulation.  The report classifies 104 MMBO and 64 BCFG as Possible
Reserves in these zones if the Tigris structure is primarily an oil
accumulation.



The report further classifies an additional 3447 BCFG as an unrisked Prospective
Resource within the gas case or 408 MMBO and 245 BCFG as an unrisked Prospective
Resource in the oil case.  The Prospective Resource was based on potential
resources below the base of the hydrocarbon bearing zones encountered in the
existing well bore, as a definitive water contact is not identified with the
existing data.



In summary, the natural gas case equates to total reserves potential among
Probable, Possible and Prospective Resource as 4330 BCFG (722 MMBOE), while the
oil case equates to 512 MMBO and 308 BCFG (combined 563 MMBOE).  Gulfsands' 50%
working interest in Block 26 and the Tigris reserves are subject to the fiscal
terms of this Production Sharing Contract.  Following this initial review, Ryder
Scott will undertake a further review of the field development plan and costs,
to quantify the economic value of the Probable and Possible Reserves and
Prospective Resource.



John Dorrier, CEO of Gulfsands Petroleum, said:


'This independent study confirms our conclusion that Block 26 contains probable
pay in Palaeozoic reservoirs and significantly increases the Company's overall
reserves.  The report further demonstrates the lower risk associated with
finding large oil and gas reserves in Block 26 and increases the total Block
potential significantly.'




Enquiries:
Gulfsands Petroleum (Houston)                                001-713-626-9564
David DeCort, Chief Financial Officer

College Hill (London)                                        020-7457-2020
Ben Brewerton / Nick Elwes

Seymour Pierce (London)                                      020-7107-8000
Richard Redmayne
Jonathan Wright


Note to Editors



•         Gulf of Mexico, USA

The Group owns interests in 64 offshore blocks comprising approximately 216,000
gross acres which includes 39 producing oil and gas fields offshore Texas and
Louisiana with proved and probable recoverable reserves of approximately 30.3
billion cubic feet of natural gas equivalents (BCFGE), consisting of 14.94 BCFG
and 2.56 MMBO as of 30 June 2005 with a net present value of approximately $129
million.  Additionally, there is a further 3.4 BCFGE of possible recoverable
reserves with a net present value of approximately $14 million.



•         Syria

In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.
The block covers 11,000 square kilometres and surrounds areas which currently
produce over 100,000 barrels of oil per day from existing fields.  In January
2006 the Group completed the acquisition of 1,155 kilometers of 2D seismic and
anticipates drilling two wells during 2006.  The first well, known as Souedieh
North is scheduled to be drilled in May of 2006 which has the potential to
contain in excess of 100 MMBO.  The second well known as Tigris is scheduled to
be drilled in August of 2006 and has the potential to contain in excess of 500
MMBOE.  Gulfsands has identified 31 total exploitation and exploration prospects
within Block 26 with mean resources potential exceeding 1 billion barrels of
recoverable oil.



An independent reserves report was issued in January 2006 on the Tigris
structure.  The reserves were classified as either oil or gas bearing until such
time as the Company drills and tests the Tigris structure.  The reserve report
concluded that there are 442 BCFG of probable recoverable reserves in the Tigris
structure.  Additionally, the report classified the possible reserves as either
natural gas or oil.  The gas case reflected an additional 442 BCFG in possible
recoverable reserves and an additional 3447 BCFG as prospective resource.  The
oil case reflects 104 MMBO and 64 BCFG in possible recoverable reserves and a
further 408 MMBO and 245 BCFG as prospective resource.  In summary, the natural
gas case equates to total recoverable reserves potential among probable
reserves, possible reserves and prospective resource as 4330 BCFG (722 MMBOE),
while the oil case equates to 512 MMBO and 308 BCFG (combined 563 MMBOE).



•         Iraq

Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry
of Oil in Iraq for the Misan Gas Project in Southern Iraq and is currently
negotiating the definitive contract for the project.  The project will gather,
process and transmit natural gas that is currently a waste by-product of oil
production in the region and will end the environmentally damaging practice of
gas flaring. Gulfsands has completed a feasibility study and expects to conduct
further technical work and commercial discussions with the Iraq Oil Ministry.



•         Onshore USA

Gulfsands operates onshore in the USA through its 80% owned subsidiary company
Darcy Energy LLC.  At the Emily Hawes field, initial gas production commenced in
the summer of 2005.  The first well in the Barb Mag oil field has been drilled
and wireline logged with some 38 feet of potential net pay and production tested
at 1.5 million cubic feet of natural gas and 36 barrels of condensate per day.
Production from this well should commence during the first quarter of 2006.
Darcy Energy has a 34.375% and 37.5% working interest in these fields
respectively.


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