Statement re Tunisia Operations Update

Immediate Release                              12th January, 2011






                            GULFSANDS PETROLEUM PLC

Tunisia Operations Update

London, 12(th) January, 2011:  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 provide an update on its operations in Tunisia.

ADX  Energy ('ADX"),  the Operator  of the  Chorbane Block  onshore Tunisia, has
advised  that is has now  signed a Letter of  Intent with Challenger Limited for
the  use of  the Rig  37 onshore drilling  unit to  drill the planned 2150m Sidi
Daher  exploration well.  The spud date for the well is currently expected to be
in early February, subject to completion of civil works and receipt of approvals
from the Tunisian authorities.

The  Sidi  Daher  prospect  contains  multiple  potential reservoir intervals of
Tertiary  and Cretaceous  age that  will be  evaluated with  this well.  ADX has
estimated  prospective resources of 175 billion cubic  feet of gas in the Eocene
aged  Metlaoui Formation  and 44 million  barrels of  oil in the Cretaceous aged
Abiod  Formation.  Additional resource potential exists in the Douleb and Bireno
Members of the Cretaceous aged Aleg Formation.

Gulfsands  will pay 80% of the first US$5 million in drilling costs for the Sidi
Daher well and 40% of the drilling costs in excess of US$5 million for this well
in  order  to  earn  a  40% working  interest  in the Chorbane Block.  The total
estimated cost of the well is US$6.9 million (US$4.8 million net to Gulfsands).
The well is expected to take approximately 45 days to drill and evaluate.

Ric Malcolm, Gulfsands CEO, said

"We  look forward to drilling our first exploration well in the Chorbane Block.
As  the prospect is reasonably close  to existing infrastructure, a commercially
attractive  discovery will have  the potential to  be developed and brought into
production quite rapidly."

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)                                  +44 (0)20
7434 6060
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
approximately 3,000 barrels of oil per day. Block 26 covers approximately 5,414
km(2) 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 2012. 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 4,500
km(2).

The operator has identified multiple leads and targets on these permits.
Drilling operations were recently completed at the Lambouka-1 well where gas was
encountered in the Abiod Formation. However, as a result of down-hole problems,
no fluid samples or gas flow were established. The well was suspended with the
intention of re-entering at a later date and drilling and testing the reservoir
in a sidetrack hole up-dip of the existing discovery.

Gulfsands has completed its earn commitments with respect to the Kerkouane and
Pantelleria Permits with the drilling of the Lambouka-1 well. Gulfsands has
earned 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.

Chorbane Permit - Onshore Tunisia

The Chorbane permit is located in central Tunisia and covers an area of 2,428
km(2). 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 first quarter of
2011 for which Gulfsands will pay 80% of the first $5 million in drilling costs,
and 40% of the drilling costs in excess of $5 million, 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
mean un-risked prospective resources of 175 billion cubic feet of gas ("bcfg")
and 44 million barrels of oil from Tertiary and Cretaceous aged reservoirs.

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 32 leases offshore Texas and Louisiana, which
include 20 producing oil and gas fields with proved and probable working
interest reserves at 31 December 2009 of 3.4 mmboe (figures adjusted for the
disposal of non-core properties in December 2010).

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 website www.gulfsands.com









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Source: Gulfsands Petroleum PLC via Thomson Reuters ONE

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