Statement re Tunisia Drilling Update
Immediate Release                     19(th) August 2010
GULFSANDS PETROLEUM PLC
Tunisia Drilling Update
London, 19(th) August, 2010:Â 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 following information on drilling
operations on the Lambouka-1 well in a news release made earlier today in
Australia.
The Lambouka - 1 well has intersected the complete Ain Grab section, a secondary
target in this well, encountering porous reservoir sandstone as prognosed.
However based on interpretation of MWD (measurement while drilling) logs, the
formation is considered to be water bearing.
The current 12¼" hole section has now been drilled to a depth of 2216m and
preparations are currently underway to set and cement the 9 5/8" casing prior to
drilling on in a 8½" hole into the primary target, the Abiod carbonate
formation.
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 18(th) 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) +44 (0)20 7434 6060
Richard Malcolm, Chief Executive Officer
Andrew Rose, Chief Financial Officer
Kenneth Judge, Director: Corporate Development &
Communications
Buchanan Communications Limited (London) +44 (0)20 7466 5000
Bobby Morse
Ben Romney
Chris McMahon
RBC Capital Markets (London) +44 (0)20 7653 4000
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 8,250 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 2010 and is
extendable for a further two years. 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 Â 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 and
drilling is currently underway on the most significant of these targets which is
the Lambouka Prospect, a large horst block containing multiple reservoir
targets. The operator has estimated that the Lambouka Prospect has mean
estimated resources of 270 mmboe.
Gulfsands' work commitment for the Kerkouane Permit includes the drilling of the
Lambouka-1 exploration well which is currently underway. Gulfsands will earn 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. The cost of
Gulfsands' farm-in obligations to earn a 30% interest in these permits is
estimated to be approximately US$9 million.
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#1438867]
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Source: Gulfsands Petroleum PLC via Thomson Reuters ONE