USA Reserves Update

Gulfsands Petroleum PLC
30 April 2007

USA Reserves Update

•       Proved and probable reserves increase by 31%

•       Reserve replacement equal to 389% of 2006 production

•       NPV of proved and probable reserves at $197 million



London, 30th April, 2007:  Gulfsands Petroleum plc (AIM: GPX) ('Gulfsands' or '
the Company'), the oil and gas production, exploration and development company
with activities in the U.S.A., Syria and Iraq, is pleased to provide an updated
reserves study as of 31 December 2006 for Gulfsands' USA oil and gas properties.




Proved and probable reserves in the USA increased by 31% to 44.6 billion cubic
feet of natural gas equivalents (BCFGE), or 7.4 million barrels of oil
equivalents (MMBOE), as of 31 December 2006 compared to 34 BCFGE as of 31
December 2005.  The net present value (NPV) of the proved and probable reserves
as of 31 December 2006 discounted at 10% totals $197 million with 84% of the NPV
in the proven reserves.



Gulfsands' reserve additions for the 2006 calendar year replaced 389% of its
2006 produced oil and gas volumes.  Produced oil and gas volumes for 2006 were
3.67 BCFGE.



Shown below is a table that summarizes current reserves as of 31 December 2006
in the USA on a net revenue interest (working interest less all royalties) basis
to Gulfsands.




                            Proved + Probable            Possible                    Total
                           (BCFGE)     (MMBOE)      (BCFGE)     (MMBOE)      (BCFGE)       (MMBOE)


Gulf of Mexico              41.5         6.9          2.1         0.3         43.6           7.2


Onshore Gulf Coast           3.1         0.5          4.7         0.8          7.8           1.3


Total                       44.6         7.4          6.8         1.1         51.4           8.5







Gulf of Mexico Reserves



Gulfsands commissioned Netherland, Sewell & Associates Inc. to provide a
reserves report for the USA offshore Gulf of Mexico oil and gas properties as of
31 December 2006.  This reserve report reflected an increase in overall reserves
primarily associated with extensive workover and recompletion work on many of
the properties.  The reserves report states that Gulfsands' Gulf of Mexico
properties contain proved and probable reserves of 41.5 BCFGE, consisting of
27.3 billion cubic feet of natural gas (BCFG) and 2.36 million barrels of oil
(MMBO).  On an oil barrel equivalent basis this represents 6.9 MMBOE.  The
report further classifies an additional 2.1 BCFGE of possible recoverable
reserves.



The NPV at 31 December 2006 of the proved and probable reserves discounted at an
annual rate of 10% is $185 million (86% of net present value is in proven
reserves).  The NPV of the possible reserves was $9.8 million.





Onshore Gulf Coast Reserves



Collarini Associates completed a reserves report for the USA onshore Gulf Coast
oil and gas properties of the Company at 31 December 2006.  This reserve report
also reflected an increase in overall reserves.  The reserves report states that
Gulfsands' onshore properties contain proved and probable reserves of 3.1 BCFGE,
consisting of 2.8 BCFG and 57,000 barrels of oil. The report further classifies
an additional 4.7 BCFGE of possible recoverable reserves, consisting of 4.6 BCFG
and 24,000 barrels of oil.



The NPV of the proved and probable reserves discounted at an annual rate of 10%,
is $11.8 million and the NPV of the possible reserves is $11.2 million.



Gulfsands' CEO, John Dorrier, said:



'The increases in our USA reserves have exceeded our expectations with a
resulting increase in their value despite lower commodity prices.'




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 has consented to the inclusion of the material in the
form and context in which it appears.



Oil prices are based on 31 December 2006, NYMEX West Texas Intermediate futures
prices and are adjusted by field for quality, transportation fees, and regional
price differentials.  Gas prices are based on the 31 December 2006, NYMEX Henry
Hub futures prices and are adjusted by field for energy content, transportation
fees, and regional price differentials.





ABOUT GULFSANDS:



Gulf of Mexico, USA

The Company owns interests in 54 offshore blocks comprising approximately
193,000 gross acres which includes numerous producing oil and gas fields
offshore Texas and Louisiana with proved and probable recoverable reserves net
to Gulfsands at 31 December 2006 of 41.5 BCFGE (6.9 MMBOE), consisting of 27.3
BCFG and 2.36 MMBO.



Onshore USA

Gulfsands owns interests in two oil and gas fields onshore Texas, USA (98.5%
working interest in Emily Hawes Field and 37.5% working interest in Barb Mag
Field) with proved and probable recoverable reserves net to Gulfsands at 31
December 2006 of 3.1 BCFGE (0.5 MMBOE), consisting of 2.8 BCFG and 57,000
barrels of oil.



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.



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 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.



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.



For further information on the USA reserves report and 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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