Khurbet East Field Development Update

First Khurbet East development well successfully completed Horizontal development well scheduled to commence in Khurbet East London, 6th 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 that the Company has successfully completed the drilling of its first development well within the Khurbet East Field ("KHE-4") following the recent approval by the Syrian Government for the development of the Khurbet East Field. The KHE-4 well was drilled to a total depth of approximately 1,935 metres, and the top of the reservoir section was encountered within 3 meters of the pre-drill prognosis. The well has now been completed and suspended as a future oil producer, and will be brought on line when the Khurbet East Early Production Facility is operational, scheduled to commence by Q4 2008. As planned, the Company did not undertake a drill-stem test with this well as the tests from the KHE-2 and KHE-3 wells provide sufficient information for the vertical wells in this portion of the Field. As previously announced, a drill stem test on the KHE-3 appraisal well produced at an average stabilized rate of 3,420 bopd with 206,000 cubic feet of natural gas per day. The KHE-4 well is the first development well within the Khurbet East Field, and is designed to deliver oil production from the Cretaceous Massive Formation reservoir. KHE-4 is a vertical well located near the currently mapped crest of the structure. Drilling operations on KHE-4 were completed ahead of schedule and under budget, which is a significant achievement for the first development well in the Field. The next development well in the Field, KHE-5H, is designed and will be completed as the first horizontal well within the Massive Formation reservoir. Drilling operations on KHE-5H are expected to commence in mid-March 2008. Gulfsands' CEO, John Dorrier, said: "KHE-4 is the first development well in the field. We have planned an aggressive programme of drilling and early production for the balance of 2008, and look forward to updating the market on its progress." 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 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. 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) +44 (0)20-7182-4016 Kenneth Judge, Director of Corporate Development +44 (0)7733-001-002 Gulfsands Petroleum (Syria) +963-9-8888-7788 Mahdi Sajjad, President Buchanan Communications Limited (London) +44 (0)20-7466-5000 Bobby Morse Ben Willey Nick Melson RBC Capital Markets (London) +44 (0)20-7029 7882 Andrew K. Smith Sarah Wharry ---END OF MESSAGE---
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