Reserves Update

Gulfsands Petroleum PLC
24 July 2006



24 July 2006



Gulfsands Petroleum plc
('Gulfsands' or 'the Company')


Reserves Update


NPV of Gulfsands Worldwide Proved and Probable Reserves at $426 million

NPV of Gulfsands Probable Reserves in Block 26, Syria at $233 million


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 Ryder Scott Company, L.P. ('Ryder Scott')  has
completed an economic evaluation of the probable and possible reserves
(unrisked) on the Tigris structure in Block 26, Syria as of 1 July 2006.  The
net present value discounted at 10% of the Probable Reserves as of 1 July 2006
on the Tigris structure in Block 26, Syria is estimated at $233 million net to
Gulfsands' 50% working interest.  This Ryder Scott report can be viewed on
Gulfsands' website at www.gulfsands.net.


Gulfsands USA proved and probable reserves in the USA as of 1 January 2006 were
prepared earlier in the year by Netherland, Sewell & Associates Inc. for the
Gulf of Mexico and Collarini Associates for the Gulf Coast onshore.  Those
reserve reports combined determined that the Company's USA proved and probable
reserves had a net present value of $193 million resulting in overall worldwide
proved and probable reserves for the Company at $426 million.


Gulfsands Worldwide Proved and Probable Reserves


Syria            USA               Total

102 BCFG *       34 BCFGE          136 BCFGE or 22.67 MMBOE

$233 Million     $193 Million     $426 Million


*  Represents net reserves (not working interest reserves) after applying the
fiscal terms of the PSC.



Block 26, Syria Reserves



Ryder Scott completed a detailed economic valuation of the Probable and Possible
reserves on the Tigris structure in Block 26, Syria as of 1 July 2006 as a
follow up to the previous Ryder Scott report which was a reserves volume
evaluation only.  Additionally, Gulfsands completed an internal study resulting
in a detailed economic valuation of the Prospective Resource volumes in the
Tigris structure.



On 30 January 2006, Ryder Scott issued a reserves report on the Tigris structure
in which there were two cases considered: an oil case and a gas case.  Two cases
were considered as there was insufficient data available at that time to
determine with certainty the hydrocarbon fluid contained within the Tigris
structure.  This reserves study classified recoverable Probable and Possible
Reserves and Prospective Resource as follows:



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



  • For primarily an oil accumulation, Ryder Scott 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 estimated reserves
    potential among Possible and Prospective Resource is 512 MMBO and 308 BCFG
    (combined 563 MMBOE).



Based upon this gross Reserve volumes study, Ryder Scott completed an economic
evaluation as of 1 July 2006 which indicates the Probable Reserves net to
Gulfsands after applying the fiscal terms of the Production Sharing Contract are
102 BCFG with a net present value discounted at 10% of $233 million.  For
primarily a natural gas accumulation, an additional 75 BCFG of possible reserves
net to Gulfsands were estimated to have a 10% discounted net present value of
$261 million.  Furthermore, the Company completed its own economic evaluation on
the Prospective Gas Resource and has estimated that Prospective Gas Resource net
to Gulfsands is 577 BCFG with an estimated net present value discounted at 10%
of approximately $1.06 billion.  In summary total gas reserves potential net to
Gulfsands among Probable and Possible Reserves for the natural gas case is 177
BCFG (30 MMBOE) with a net present value of $494 million and when combined with
the Prospective Gas Resource it totals 754 BCFG (126 MMBOE) with a net present
value of approximately $1.55 billion.



For primarily an oil accumulation, Ryder Scott determined the Possible Reserves
net to Gulfsands after applying the terms of the Production Sharing Contract are
19.4 million barrels of oil having a 10% discounted net present value of $452
million.  Furthermore, the Company completed its own economic evaluation on the
Prospective Oil Resource and has estimated that Prospective Oil Resource net to
Gulfsands is 50.9 MMBO with a net present value of approximately $1.51 billion.
In summary total oil reserves potential net to Gulfsands among Possible and
Prospective Oil Resource for the oil case is 70.3 MMBO with a net present value
of approximately $1.96 billion.



Natural gas pricing used in the evaluation was based upon a June 2006 monthly
average price utilizing the natural gas pricing formula within the Block 26
Production Sharing Agreement.  Oil pricing was based upon the average price for
Syrian light crude oil for the month of June 2006.  Natural gas prices were
fixed at $7.24 per million cubic feet while oil prices were fixed at $66.69 per
barrel for the life of the project.



Gulfsands currently plans to commence drilling the Tigris confirmation well in
late August or early September of 2006.  Additionally, the Company plans to
drill a further two wells by August of 2007 on Block 26 utilizing the drilling
rig for the Tigris well and another drilling rig which the Company is seeking to
secure by year-end.  Gulfsands is currently reviewing the recently acquired 2D
seismic data which will be used to aid in the selection of the further drilling
locations in Block 26.




Gulfsands' CEO, John Dorrier, said:



'The Company has been developing the Block 26 prospect inventory during the past
year since it became operator of the Block.  This work has resulted in a number
of high quality prospects that will be drilled in a multi-well programme during
the next 12-15 months, starting with the Tigris well.  The Ryder Scott report
gives us considerable optimism for the value that could accrue to the Company as
a result of the Syrian drilling campaign.'





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

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

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



NB: This release has been approved by the Company's geological staff who include
Jason Oden, Gulfsands Exploration Manager who has a Bachelor of Science degree
in Geophysics with 22 years of experience in petroleum exploration and
management and is registered as a Professional Geophysicist, for the purpose of
the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock
Exchange in respect of AIM companies, which outlines standards of disclosure for
mineral projects.



Note to Editors



•         Gulf of Mexico, USA

The Company 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 Company completed the acquisition of 1,155 kilometers of 2D seismic and
anticipates drilling two wells during 2006.  The first well, known as Souedieh
North, commenced drilling in late April 2006 and was temporarily suspended in
June for further analysis.  The second well known as Tigris is scheduled to spud
in late 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.



Ryder Scott completed a reserves study on the Tigris structure in 2006 and these
reserves were classified as either oil or gas bearing until such time as the
Company drills and tests the Tigris structure.  As of 1 July 2006 Ryder Scott
determined that the Probable Reserves net to Gulfsands after applying the terms
of the Production Sharing Contract is 102 BCFG with a net present value
discounted at 10% of $233 million.  For primarily a natural gas accumulation, an
additional 75 BCFG of possible reserves net to Gulfsands were estimated to have
a 10% discounted net present value of $261 million.  Furthermore, the Company
completed its own economic evaluation on the Prospective Gas Resource and has
estimated that Prospective Gas Resource net to Gulfsands is 577 BCFG with a net
present value of approximately $1.06 billion.  In summary total gas reserves
potential net to Gulfsands among Probable and Possible Reserves for the natural
gas case is 177 BCFG (30 MMBOE) with a net present value of $494 million and
when combined with the Prospective Gas Resource it totals 754 BCFG (126 MMBOE)
with a net present value of approximately $1.55 billion.



For primarily an oil accumulation, Ryder Scott determined the Possible Reserves
net to Gulfsands after applying the terms of the Production Sharing Contract are
19.4 million barrels of oil having a net present value discounted at 10% of $452
million.  Furthermore, the Company completed its own economic evaluation on the
Prospective Oil Resource and has estimated that Prospective Oil Resource net to
Gulfsands is 50.9 MMBO with a net present value of approximately $1.51 billion.
In summary total oil reserves potential net to Gulfsands among Possible and
Prospective Oil Resource for the oil case is 70.3 MMBO with a net present value
of approximately $1.96 billion.



•         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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