Reserves Update

Gulfsands Petroleum PLC
02 March 2006

2 March 2006



Gulfsands Petroleum PLC

('Gulfsands' or 'the Group')



Gulfsands Announces Reserves Update



O     NPV of USA Proved and Probable Reserves at $193 Million

O     NPV of USA Possible Reserves at $24 Million

O     USA Exploration and Re-development Success Replaced 269% of 2005 Oil and
      Gas Production


Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
announced today that the Group's independent oil and gas engineering reserves
firms have performed an updated reserves study as of 1 January 2006 for
Gulfsands' Gulf of Mexico and onshore USA oil and gas properties.  The proved
and probable reserves for both the Gulf of Mexico and onshore USA properties are
valued at $193 million.  The offshore Gulf of Mexico properties represent $183
million of this total.



Gulf of Mexico Reserves



Gulfsands commissioned Netherland, Sewell & Associates Inc. to provide a
reserves report for the offshore Gulf of Mexico properties owned by Gulfsands.
The net present value of the Gulfsands proved and probable reserves in these
properties as of 1 January 2006, discounted at an annual rate of 10%, is $183
million (87% of value is in proven reserves)  This report shows a 42% increase
in net present value from the reserves report issued on 30th June 2005.  The
increase in value is due to growth in proved and probable reserves through
exploration and field re-development activities, as well as increased product
prices.



The reserves report states that Gulfsands offshore Gulf of Mexico properties
contain proved and probable reserves of 32.4 billion cubic feet of natural gas
equivalents (BCFGE), consisting of 19.8 billion cubic feet of natural gas (BCFG)
and 2.1 million barrels of oil (MMBO).  The reserves report further classified
an additional 2.8 BCFGE of possible recoverable reserves, with a net present
value of $15.8 million.



Through ongoing exploration and field re-development activities, Gulfsands'
reserves additions replaced 269% of its 2005 produced oil and gas volumes. This
represents a year on year increase of 20% in Gulfsands' Gulf of Mexico reserves
base.



Onshore USA Reserves



Gulfsands operates onshore in the USA through its 83% owned subsidiary company
Darcy Energy LLC.  As of 1 January 2006, Darcy Energy owned interests in two oil
and gas fields onshore Texas, USA (Emily Hawes and Barb Mag).  Collarini
Associates has completed a reserves report on these fields.  As of 1 January
2006, the net present value for the proved and probable reserves in these
fields, net to Darcy Energy and discounted at an annual rate of 10%, is $9.5
million. The report states that the fields contain net proved and probable
reserves of 1.6 BCFGE, consisting of 1.2 BCFG and 58,000 barrels of oil.  The
reserves report further classified an additional 2.2 BCFGE of possible
recoverable reserves with a net present value of $7.9 million.



Block 26, Syria Reserves



Gulfsands announced on 30 January 2006 the results of a reserves study by Ryder
Scott Company, L.P. (Ryder Scott), an independent petroleum engineering firm, on
the Tigris structure. Ryder Scott developed two cases for this evaluation, an
oil case and a gas case, as there was not sufficient data available at the 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).



Since the issuance of this reserves report the Company has commenced further
work on the Tigris structure so that Ryder Scott can be engaged for a further
review of the field development plan and costs, to quantify the economic value
of the Probable and Possible Reserves and Prospective Resource.  Gulfsands plans
to commence drilling its first well on the Tigris structure in August 2006.



Gulfsands' CEO, John Dorrier, said:



'This is an outstanding result for Gulfsands' Gulf of Mexico and US onshore
business operations.  By adding significantly more reserves than our produced
volumes in 2005 we are achieving our goal of steadily increasing the value of
our US offshore and onshore assets.  These volume and value increases provide
solid asset backing for the Company while upside is provided by both the
significant reserves and resource potential in our operated Block 26 in Syria
and also the Misan Gas Project in Iraq.'



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 32.4 BCFGE,
consisting of 19.8 BCFG and 2.1 MMBO as of 1 January 2006 with a net present
value of $183 million.  Additionally, there is a further 2.8 BCFGE of possible
recoverable reserves with a net present value of $15.8 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 83% owned subsidiary company
Darcy Energy LLC.  As of 1 January 2006, Darcy Energy owned interests in two oil
and gas fields onshore Texas, USA (Emily Hawes and Barb Mag) with proved and
probable recoverable reserves of 1.6 BCFGE, consisting of 1.2 BCFG and 58,000
barrels of oil with a net present value of $9.5 million.  Additionally, there is
a further 2.2 BCFGE of possible recoverable reserves with a net present value of
$7.9 million.




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