USA Reserves Update

For immediate release
                    25 March 2008
                       Gulfsands Petroleum plc

                         USA Reserves Update

London, 25th March 2008:   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,
and the U.S.A., is pleased to  announce an updated reserves study  as
of 31 December 2007 for Gulfsands' USA oil and gas properties.

The 2P reserves in  the USA were 40.7  billion cubic feet of  natural
gas  equivalents  ("BCFGE"),  or      6.8  million  barrels  of   oil
equivalents ("MMBOE") as of 31 December 2007 with the proved reserves
representing 82% of the 2P reserves.  Additionally, 3P reserves  were
48.7 BCFGE,  or 8.2  MMBOE.   All reserves  are calculated  on a  net
revenue interest basis (working interest barrels less royalties).

Shown below is  a table  that summarizes  current reserves  as of  31
December 2007  in  the  USA  on  a  net  revenue  interest  basis  to
Gulfsands.


+---------------------------------------------------------------------+
|                    |Proved         |Proved +   |Proved, Probable|   |
|                    |               |Probable   |+  Possible     |   |
|--------------------+---------------+--------------------------------|
|                    |(BCFGE)|(MMBOE)|(BCFGE)|(MMBOE) |(BCFGE)|(MMBOE)|
|                    |       |       |       |        |       |       |
|--------------------+-------+-------+-------+--------+-------+-------|
|Gulf of Mexico      |32.5   |5.4    |39.1   |6.5     |41.9   |7.0    |
|--------------------+-------+-------+-------+--------+-------+-------|
|Onshore Gulf Coast  | 1.0   |  .2   |  1.6  |0.3     | 6.8   |1.2    |
|                    |       |       |       |        |       |       |
|--------------------+-------+-------+-------+--------+-------+-------|
|Total               |33.5   |5.6    |40.7   |6.8     |48.7   |8.2    |
|                    |       |       |       |        |       |       |
+---------------------------------------------------------------------+


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 2007.   The reserves report  states
that these properties contain 2P  reserves of 39.1 BCFGE,  consisting
of 26.4 billion cubic feet of  natural gas ("BCFG") and 2.13  million
barrels of  oil ("MMBO").   On  an oil  equivalent basis  (6:1)  this
represents 6.52 MMBOE.  The  report further classifies an  additional
2.7 BCFGE of possible recoverable reserves.

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
2007.  The reserves  report states that  these properties contain  2P
reserves of 1.6 BCFGE.  On an oil equivalent basis this represents .3
MMBOE.   The report  further classifies  an additional  5.2 BCFGE  of
possible recoverable reserves.

Net Present Valuation of USA Reserves

The net  present  value  ("NPV")  of the  Company's  USA  proved  and
probable ("2P") reserves as of 31 December 2007 using a discount rate
of 10%,  increased to  $226 million  as  compared to  a NPV  of  $197
million as of 31 December 2006.   The increase in the NPV is  largely
due to the  increased crude oil  and natural gas  price at 1  January
2008 as compared to 31 December 2006.

Oil  prices  are  based  on  the  year-end  2007  NYMEX  West   Texas
Intermediate futures prices  and are adjusted  by field for  quality,
transportation fees, and regional  priced differentials.  Gas  prices
are based on the year-end 2007 NYMEX Henry Hub futures prices and are
adjusted by  field  for  energy  content,  transportation  fees,  and
regional price differentials.

The estimates  of  reserves  and  future  revenue  were  prepared  in
accordance with the definitions and guidelines set forth in the  2007
Petroleum Resources  Management System  approved  by the  Society  of
Petroleum Engineers.

This release has been approved  by Jason Oden, Gulfsands  Exploration
Manager, who has a Bachelor of  Science degree in Geophysics with  23
years of experience  in petroleum exploration  and management and  is
registered as a Professional Geophysicist.  Mr. Oden has consented to
the inclusion of  the technical  information in this  release in  the
form and context in which it appears.

ABOUT GULFSANDS:

Syria
Gulfsands owns a 50% working interest and is operator of Block 26  in
North East  Syria.    Block  26  covers  approximately  8,250  square
kilometres and encompasses  existing fields  which currently  produce
over 100,000 barrels of oil per day. These fields are operated mainly
by the Syria Petroleum Company.  In the first half of 2007  Gulfsands
announced an oil and gas discovery on Block 26 called Khurbet East.
This discovery is currently  under development with first  production
targeted for the  fourth quarter  of 2008.   On 23  August 2007,  the
Company initiated the first extension period of exploration on  Block
26 for a further period of three years.  The Company has also  formed
a strategic partnership with Cham  Holding for acquiring oil and  gas
projects in Syria and Iraq.

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 and following completion of  a feasibility study on the  project
is negotiating  details of  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.

Gulf of Mexico, USA
The  Company  owns  interests   in  48  offshore  blocks   comprising
approximately 168,000 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 2007 of
39.1 BCFGE (6.5 MMBOE), consisting of 26.4 BCFG and 2.13 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 2007  of 1.6  BCFGE  (0.3
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.

For further  information,  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)                     [phone]
Kenneth Judge, Director of Corporate Development [phone]

Buchanan Communications Limited (London)         [phone]
Bobby Morse
Ben Willey

RBC Capital Markets (London)                     [phone]
Andrew K. Smith
Sarah Wharry

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