Syria Update

Gulfsands Petroleum PLC
31 January 2007

Rig Contract Signed for Block 26, Syria



New Exploration Well on Block 26, Syria



Drilling Update - Tigris-1 well, Syria



London, 31st January, 2007:  Gulfsands Petroleum plc (AIM: GPX), the oil and gas
production, exploration and development company with activities in the U.S.A.,
Syria and Iraq is pleased to announce that the Company has executed a formal
contract for a drilling rig to be used for drilling the next exploration well on
Block 26, Syria in February 2007.



Rig Contract Executed - Khurbet East Exploration Well



Gulfsands, the operator and 50% working interest owner in Block 26, Syria, has
executed a formal contract with Crosco, a drilling company based in Croatia, for
the Crosco 602 rig, a 2,000 horsepower drilling rig to be used for drilling one
exploration well scheduled to commence by mid February of this year. The Crosco
602 rig will be utilized to drill the Khurbet East exploration prospect ('KHE 1
') and has now been mobilized to the drill site.



KHE 1 is a fault-bound structural culmination, with closure mapped at multiple
potential reservoir levels.  These include reservoirs of Cretaceous, Triassic
and Palaeozoic age. The well is located approximately 12 kilometers southwest of
the Souedieh Oil Field and 12 kilometers south of the Rumailan Oil Field, in the
northeastern portion of Block 26.  The total drilling depth of the KHE 1 well is
expected to be approximately 3,700 meters and require approximately 90 - 100
days to drill and evaluate.



Tigris-1 Update



The Tigris-1 exploration well is currently drilling ahead at a depth of 4,391
metres to a planned total depth as previously announced of approximately 4,500
metres.



Following the drilling of the KHE 1 well the Company is planning to drill its
fourth commitment well on Block 26 once the rig currently drilling the Tigris-1
well is returned to Gulfsands around July 2007.



Gulfsands' CEO, John Dorrier, said:



'We are very pleased to have reached agreement with Crosco for the use of the
602 rig in a market which is increasingly tight for equipment of this size and
capability. With the anticipated return of the current rig later in the first
half of the year, we can now look forward to being able to undertake a nearly
continuous drill programme on Block 26 during 2007.'

















ABOUT GULFSANDS:



Gulf of Mexico, USA

The Company owns interests in 64 offshore blocks comprising approximately
216,000 gross acres which includes numerous 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 1st January 2006 these
were estimated to have a net present value of $183 million. In addition, the
Company's 2.8 BCFGE of possible recoverable reserves were estimated to have a
net present value of $15.8 million.



Syria

Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria.  Block 26 covers 11,000 square kilometres and encompasses existing fields
which currently produce over 100,000 barrels of oil per day. These fields are
operated by third parties including the Syria Petroleum Company.



In January 2006 the Company completed the acquisition of 1,155 kilometres of 2D
seismic over Block 26 and following evaluation of this data, commenced drilling
of the Tigris-1 prospect on 10 September, 2006. The Tigris structure is
estimated to have the potential to contain in excess of 500 MMBOE.  Gulfsands
has identified numerous exploration prospects and leads within Block 26 with
mean resources potential exceeding 1 billion barrels of recoverable oil.



Ryder Scott recently completed a reserves study on the Tigris structure (the
report is available on the Gulfsands' website at www.gulfsands.net) and pending
the Company's drilling and testing of the Tigris structure, classified these
reserves as either oil or gas bearing. Ryder Scott assessed Gulfsands' net
Probable Reserves were 102 BCFG and had a net present value of $233 million.
Assuming a primarily natural gas accumulation, Ryder Scott estimated Gulfsands
had an additional net 75 BCFG of possible reserves with a net present value of
$261 million. All reserve estimations for Syria were calculated using a discount
rate of 10% and after applying the terms of the Production Sharing Contract
after Syrian taxes.



The Company has completed its own economic evaluation on the Prospective Gas
Resource and has estimated the Company to have a net Prospective Gas Resource of
577 BCFG with a net present value of approximately $1.06 billion.



In summary, Gulfsands' total net gas reserves potential among Probable and
Possible Reserves for the natural gas case is estimated at 177 BCFG (30 MMBOE)
with a net present value of $494 million. When combined with the Prospective Gas
Resource for an aggregate 754 BCFG (126 MMBOE), the net present value of
Gulfsands' interest are estimated to be valued at approximately $1.55 billion.



Ryder Scott estimated that for a primarily oil accumulation, the Possible
Reserves net to Gulfsands are 19.4 million barrels of oil with a net present
value of $452 million. Gulfsands has completed its own economic evaluation on
the Prospective Oil Resource and has estimated its net Prospective Oil Resource
at 50.9 MMBO with a net present value of approximately $1.51 billion.



In summary Gulfsands total net oil reserves potential among Possible and
Prospective Oil Resource for the oil case is estimated at 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 following
completion of a feasibility study on the project, is currently negotiating
details of definitive contracts 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.



Onshore USA

Gulfsands operates onshore in the USA through its 100% owned subsidiary company
Darcy Energy LLC which owns interests in two oil and gas fields onshore Texas,
USA (34.375% working interest in Emily Hawes and 37.5% working interest in Barb
Mag) with proved and probable recoverable reserves net to Gulfsands at 1 January
2006 of 1.6 BCFGE, consisting of 1.2 BCFG and 58,000 barrels of oil with an
estimated net present value of $9.5 million. Additionally, these fields contain
a further 2.2 BCFGE of possible recoverable reserves net to Gulfsands with an
estimated net present value of $7.9 million.



Certain statements included herein constitute 'forward-looking statements'
within the meaning of applicable securities legislation. These forward-looking
statements are based on certain assumptions 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.



For further information including the Company's recent investor presentation,
please refer to the Company's website www.gulfsands.net or contact:




Gulfsands Petroleum (Houston)                                + 1-713-626-9564
John Dorrier, Chief Executive Officer
David DeCort, Chief Financial Officer

Gulfsands Petroleum (London)                                 020-7182-4016
Kenneth Judge, Director of Corporate Development             07733-001-002

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

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




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