Statement re Tunisia Drilling Update

Immediate Release                                     7th September 2010




                            GULFSANDS PETROLEUM PLC

Tunisia Drilling Update
Lambouka-1 Well Results

London,  7th September, 2010:  Gulfsands Petroleum plc ("Gulfsands", the "Group"
or  the  "Company"  -  AIM:  GPX),  the  oil and gas production, exploration and
development  company  with  activities  in  Syria,  Iraq, Tunisia, Italy and the
U.S.A., is pleased to announce that ADX Energy Ltd (ASX:ADX) the operator of the
Kerkouane  Exploration  Licence  offshore  Tunisia  (Kerkouane  Licence) and the
adjacent  Pantelleria Exploration Permit  in Southern Italy  (G.R15.PU, known as
the Pantelleria Permit) has provided the following update on drilling operations
on the Lambouka-1 well.
Drilling operations on the Lambouka-1 well have been completed and the Operator
has advised that two hydrocarbon bearing zones have been interpreted in the
Lambouka - 1 well. Drilling and wire line logging operations on the well were
concluded after the well reached a total measured depth of 2786 metres.

Analysis of the final suite of wireline logs has supported earlier results from
logging while drilling that two hydrocarbon bearing zones are present in the
Abiod Formation - the primary objective for the Lambouka - 1 well. The nature of
the hydrocarbons is likely to be comprised of gas in the upper interval and gas
and possibly condensate in the lower interval based on the hydrocarbon shows
recorded from the cuttings while drilling. Although the gas shows were not as
strong as encountered in the same Abiod interval in the nearby Dougga-1
discovery, no carbon dioxide (CO2) was detected while drilling the Abiod
Formation unlike in the Dougga-1 discovery.

A net pay of approximately 23 metres has been interpreted by the Operator within
the two reservoir units. This compares favourably to the nearby Dougga discovery
which is interpreted to have a net pay of 14 meters in the Abiod and an assessed
mean resource of 74 MMBOE (million barrels of oil equivalent). Interpretation of
3 D seismic data suggests there is up dip potential from the crest of the
structure to the Lambouka -1 well location of approximately 250 metres. In
addition based on wireline interpretation, the first interpreted water bearing
reservoir was encountered approximately 230 metres below the upper hydrocarbon
zone. Specialist wireline logs and drilling data indicate that the Abiod
limestone formation at Lambouka is extensively fractured, which may be a
positive factor in reservoir productivity.

As a result of ongoing drilling fluid losses and increasing well bore
deterioration it has not been possible to safely recover fluid samples or
pressure data from the Abiod formation.  Ongoing operations in the existing
wellbore have become increasingly difficult and the productivity of the
reservoir from this well bore is very likely to have been adversely effected by
losses and use of lost circulation materials there by diminishing the ability to
obtain representative flow rates from any drill stem test.

The joint venture is considering whether to suspend or plug and abandon the
Lambouka-1 well in order to test the Aboid Formation at a later date.  A
decision on this matter is likely to depend upon an assessment of whether a new
well or suspension and future re-entry of the existing well would provide the
best opportunity to minimise rig time and maximise reservoir information to be
acquired in a future production test of the Aboid Formation.

The Operator has cautioned that the results described in this announcement are
preliminary in nature and therefore will continue to interpret the data obtained
from the Lambouka - 1 well in conjunction with seismic data in order to further
assess the potential of Lambouka discovery.

Gulfsands is acquiring a 30% participating interest in the Kerkouane Licence and
Pantelleria  Permit. Gulfsands  also expects  to participate  in the drilling of
another  exploration well before the end of 2010 in the onshore Chorbane permit,
to earn a 40% participating interest (see announcement of 18th May 2010).

This  release has been approved by Richard Malcolm, Chief Executive of Gulfsands
Petroleum  Plc who has a Bachelor of  Science degree in Geology with 30 years of
experience in petroleum exploration and management. Mr. Malcolm has consented to
the  inclusion of  the technical  information in  this release  in the  form and
context in which it appears.

For more information please contact:

Gulfsands Petroleum (London)                                 [phone]

Richard Malcolm, Chief Executive Officer
Andrew Rose, Chief Financial Officer
Kenneth Judge, Director: Corporate Development &
Communications



Buchanan Communications Limited (London)                     [phone]

Bobby Morse
Ben Romney
Chris McMahon



RBC Capital Markets (London)                                 [phone]

Josh Critchley
Matthew Coakes
Martin Eales

ABOUT GULFSANDS:

Gulfsands is listed on the AIM market of the London Stock Exchange.

Syria

Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria.  The Khurbet East oil field was discovered in June 2007 and commenced
commercial production within 13 months of the discovery. This field is producing
at an average gross production rate of approximately 18,000 barrels of oil per
day through an early production facility. A second field discovery, the
Yousefieh field, was brought on-stream in April 2010, and is currently producing
2,000 barrels of oil per day. Block 26 covers approximately 8,250 square
kilometres and encompasses existing fields which currently produce over 100,000
barrels of oil per day, and are operated mainly by the Syrian Petroleum Company.
 The current exploration license expires in August 2010 and is extendable for a
further two years. Gulfsands' working interest 2P reserves in Syria at 31
December 2009 were 46.0 mmbbls.

Tunisia:

Gulfsands  is acquiring working interest positions in two exploration permits in
Tunisia  (Chorbane and Kerkouane Permits) and one exploration permit in Southern
Italy  (G.R15.PU) from  ADX Energy  Ltd the  operator of  all three permits. The
Company's  interest in  these permits  remains subject  to the completion of the
Company's farm obligations and various approvals from the governments of Tunisia
and Italy.

Kerkouane Permit - Offshore Tunisia
G.R15.PU  Permit (Pantelleria Permit) - Offshore Italy

G.R15.PU,  is located offshore the island  of Pantelleria southwest of Sicily in
Italian  waters and the Kerkouane Permit  is located offshore northeast Tunisia.
 The two permits are contiguous and comprise a total area of approximately 4500
square km.

The  operator has  identified multiple  leads and  targets on  these permits and
drilling is currently underway on the most significant of these targets which is
the  Lambouka  Prospect,  a  large  horst  block  containing  multiple reservoir
targets.  The  operator  has  estimated  that  the  Lambouka  Prospect  has mean
estimated resources of 270 mmboe.

Gulfsands' work commitment for the Kerkouane Permit includes the drilling of the
Lambouka-1  exploration well which is currently  underway. Gulfsands will earn a
30% working interest in both permits by paying approximately 35% of the cost the
Lambouka-1  well and reimbursing the operator for a portion of various pre-drill
costs  that  include  a  recently  completed  3D seismic  programme. The cost of
Gulfsands'  farm-in  obligations  to  earn  a  30% interest  in these permits is
estimated to be approximately US$9 million.

Chorbane Permit - Onshore Tunisia

The Chorbane permit is located in central Tunisia and covers an area of 2,428
square km. The permit is surrounded by several producing oil fields and
extensive oil & gas infrastructure. Gulfsands' forward work commitment for the
Chorbane permit includes the drilling of one exploration well in the fourth
quarter of 2010 for which Gulfsands will pay 80% of the estimate US$5 million
cost of the first exploration well so as to earn a 40% interest in the permit.

A  number of prospects  and leads have  been indentified within  the permit, the
most  prospective  being  a  large  tilted  horst block ("Sidi Daher") where the
operator has identified multiple potential targets estimated to hold recoverable
un-risked prospective resources of 80 mmboe.

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, following completion
of a feasibility study on the project, and is negotiating details of a
definitive contract 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. The Company is
actively engaged in discussions with respect to financing and potential equity
partners.  Gulfsands has no reserves in Iraq.

Gulf of Mexico, USA

The Company owns interests in 37 leases offshore Texas and Louisiana, which
include 24 producing oil and gas fields with proved and probable working
interest reserves at 31 December 2009 of 4.7 mmboe.

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.

More information can be found on the Company's websitewww.gulfsands.com




More information on the Company can be found on the Company's
websitewww.gulfsands.com



[HUG#1442905]








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