Statement re Tunisia Update

Immediate Release                                23rd September, 2010




                            GULFSANDS PETROLEUM PLC

Tunisia Update:
Operator's Preliminary Resource Estimate for Lambouka Discovery

London, 23rd 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  results of an internal study, the
"Lambouka  Preliminary Volumetric  Resource Estimates"  which was  undertaken to
provide  a preliminary volumetric estimate of the potential hydrocarbon resource
associated with the Lambouka gas discovery.

This  estimate incorporates information from  the newly acquired 3D seismic data
as  well as drilling and petrophysical log data from the recent Lambouka-1 well.
However  it should  be noted  that these  estimates have  been made  without the
benefit  of  recovering  hydrocarbons  to  surface  through  either fluid sample
recovery  via wire-line methods,  or hydrocarbon flow  during a drill-stem test,
neither  of  which  activities  could  be  performed  during drilling operations
primarily due to down hole well conditions.

There  remain  a  number  of  areas  of  uncertainty  regarding  the  volumetric
parameters  associated  with  the  Lambouka  discovery  and  therefore  industry
standard  stochastic methods were  utilized to generate  this resource estimate.
The  estimate incorporates a similar "gas to condensate ratio" as was identified
in   the   nearby   Dougga  gas  condensate  field,  Lambouka-1  well  site  gas
chromatography  data which indicated a condensate rich gas and an absence of CO2
which was not detected on measuring equipment during the drilling of the well.

The  Company therefore considers the  Operator's estimates to reflect contingent
resources  as they have  been produced without  the benefit of  a detailed field
development plan or analysis of other factors of economic relevance.

In summary, the Operator's estimates for the Lambouka discovery are as follows:-
P90P50MeanP10
Gas Resource (BCF)145277309528
Condensate (mmbbls)   11  21  24  41
Oil Equivalent (mmboe)*  35  67  75129
*Million barrels of oil equivalent

These  estimates relate to the Abiod  and Allam carbonate reservoirs interpreted
as Hydrocarbon bearing at the Lambouka-1 well location, and any up-dip potential
in underlying reservoirs within the Lambouka structure was not incorporated.

The Company considers these estimates to provide a reasonable starting point for
the  further evaluation of  the Lambouka discovery,  including the extraction of
all available information from the existing data as well as development of plans
for  the next phase of data acquisition.   These plans may include re-entry into
the original well-bore, flow testing, drilling and wire-line log acquisition.  A
complete evaluation programme is expected to be in place by year end.

Forward Work Program:

The  Operator has  indicated its  preliminary forward  work plan  will include a
proposal  to re-enter Lambouka-1 well  to sidetrack and then  test the Abiod and
Allam  formations  encountered  during  drilling  operations.  The  Operator has
indicated  it will likely recommend that  a Lambouka testing operation should be
undertaken  in conjunction  with an  appraisal well  on the  Dougga field  and a
possible  exploration drilling  campaign during  2011 to target other structures
identified  on 3D seismic data  acquired prior to the drilling of the Lambouka-1
well.

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 5,414 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 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 4500
square km.

The operator has identified multiple leads and targets on these permits.
 Drilling has now been completed at Lambouka-1 where gas was encountered in the
Abiod Formation. However, as a result of down-hole problems, no fluid samples or
gas flow could be established. The well has been suspended with the intention of
re-entering at a later date and drilling and testing 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
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 website www.gulfsands.com





[HUG#1446239]








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