Souedieh North Well

Gulfsands Petroleum PLC
02 June 2006

2 June 2006



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


Gulfsands Completes Drilling Operations on Souedieh North Well


Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
announces that the Company has concluded initial drilling operations and has
suspended the Souedieh North well in Block 26, Syria pending further analysis of
the well data.


As reported previously, the well encountered a series of live oil and gas shows
in both the primary and the secondary reservoir objectives while drilling.
Wireline electric logs were run within both the primary and secondary
objectives, Tertiary and Cretaceous reservoirs, which indicated oil-bearing pay
zones within both objectives.  However, wireline fluid tests of these intervals
did not recover moveable oil.  Preliminary analysis shows that the oil is low
API gravity/high viscosity in the Tertiary reservoirs, and that the lower
porosity and permeability Cretaceous reservoirs at this location may produce oil
after mechanical or chemical stimulation.  Gulfsands is the operator and 50%
working interest owner in Block 26.


Independent log analysis of the electric wireline logs in both the Tertiary and
Cretaceous reservoir sections of the well indicated some 80 feet of potential
net oil pay.  Although live oil was collected in the samples during drilling, no
oil was recovered during wireline tests of these zones.  A full review of the
drilling, sample, wireline and sidewall core data is being undertaken, in
conjunction with a further review of the seismic data over the area.  Due to the
apparent oil column seen in this well the Company has decided to suspend the
well in order to complete these studies and determine if these reservoirs are
candidates for fracture stimulation or a similar stimulation testing program, or
whether the well should be deepened.  No production testing has been performed
on the well but will be considered as part of a future testing program after
these further analyses have been completed.



Gulfsands' CEO, John Dorrier, said:



'We are disappointed not to recover movable oil in this well after encountering
good oil shows while drilling and recording an apparent oil column on the
wireline logs.  Further work on the information gathered in this well may
justify further testing, stimulation or deepening operations in the well, and
will certainly be very useful in evaluating the numerous other prospects seen on
the block.  The geologic and operations data gathered during drilling Souedieh
North will certainly help in the drilling of the Tigris-1 well scheduled for
August this year.'




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

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

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



NB: This release has been approved by 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.  Mr. Oden of Gulfsands and also Peter Hitchens on behalf of
Teather & Greenwood Limited, the Company's Nominated Advisor, have consented to
the inclusion of the material in the form and context in which it appears.



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 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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