Statement re Tunisia Update

Immediate Release   7(th) June 2010






                            GULFSANDS PETROLEUM PLC


Gulfsands exercises option to increase interest in blocks in Tunisia and
Southern Italy


London,  7(th) June, 2010: 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 further  to the announcement on 18(th) May
2010, the  Company has  exercised its  option to  increase from  20% to 30%, the
working  interest position it is acquiring  in the Kerkouane Exploration Permit,
offshore  Tunisia (Kerkouane Permit) and in the adjacent Pantelleria exploration
permit  in  Southern  Italy  (G.R15.PU,  known  as the Pantelleria Licence) from
subsidiaries of AuDAX Resources Ltd ("AuDAX" and ASX:ADX).


Gulfsands'  decision to increase  its working interest  in these permits follows
from  an  assessment  of  the  "fast-track  cube"  processed  from  the recently
completed  3D seismic survey carried  out over the  Lambouka Prospect. Data from
the  3D seismic  survey  was  also  used  to  select  several potential drilling
locations  for the  Lambouka-1 exploration  well, with  final location selection
determined  following  completion  of  a  survey  of the seabed at the alternate
locations.


Tunisian  government approval to  move the "Atwood  Southern Cross" drilling rig
onto  location at the selected Lambouka-1 well location is expected shortly with
drilling anticipated to commence in the second half of June. Tow vessels are now
on  route to  Tenerife on  the Canary  Islands to  begin the tow of the Southern
Cross  to  the  Lambouka  -1  well  location.  The  gross  cost  of the Lambouka
exploration  well  is  estimated  at  approximately  $20  million  with drilling
anticipated to take approximately 30 days.


AuDAX  has estimated the mean prospective  resource for the Lambouka Prospect at
270 million barrels oil equivalent ("MMBOE") with the primary objectives for the
well  being  the  Miocene  aged  Birsa  Formation  and the Cretaceous aged Abiod
Formation.


Following  the  exercise  of  Gulfsands'  option  and  completion of all earn-in
obligations,  the respective interests of the  parties in the "Lambouka Prospect
Area"  being the limited  area defined to  be over the  Lambouka prospect within
both the Kerkouane Permit and the Pantelleria Licence, will be:


AuDAX 30% (operator)

Gulfsands 30%

Bombora Energy 10%

Carnavale Resources 20%

PharmAust 10%,


Following  the exercise  of Gulfsands'  option and  completion of Gulfsands' and
Bombora's  farm-in obligations  and exercise  of elections  with respect  to the
Pantelleria  Licence, the respective interests in the remainder of the Kerkouane
Permit  and the Pantelleria Licence (outside  of the Lambouka Prospect Area) and
the Kerkouane production sharing contract will be as follows:-


AuDAX 60% (operator)

Gulfsands 30%

Bombora Energy 10% (with an option to acquire a further 10% from AuDAX)


Chorbane Permit - Onshore Tunisia


Formal  farm-in  documentation  for  the  acquisition  of  a 40% interest in the
Chorbane  permit, located  onshore central  Tunisia is  expected to be finalized
shortly with the intention to drill a well on the Chorbane permit before the end
of 2010.



Kerkouane & Pantelleria block map showing leads & prospects and the rectangular
shaped Lambouka Prospect Area (approx. 150 sqkm). The insert map shows a depth
structure map of Lambouka at Birsa oil reservoir level and the Lambouka area.

Ric Malcolm, Gulfsands CEO, said


"We were encouraged by our evaluation of the prospectivity of the Lambouka
Prospect following receipt of the high quality 3D data acquired in the recent
seismic survey and have therefore elected to increase our interest in this
exciting project. We are looking forward to the commencement of drilling
operations on the Lambouka prospect in late June."


This release has been approved by Richard Malcolm, Chief Executive of Gulfsands
Petroleum Plc who has a Bachelor of Science degree in Geology with 29 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)                                 [phone]

Richard Malcolm, Chief Executive Officer

Andrew Rose, Chief Financial Officer

Kenneth Judge, Director: Corporate Development &
Communications


Buchanan Communications Limited (London)                     [phone]

Bobby Morse

Ben Romney

Chris McMahon


RBC Capital Markets (London)                                 [phone]

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. The Yousefieh oil field
was discovered in November 2008 and commenced commercial production within 18
months of discovery. These fields are now producing at an average combined gross
production rate of approximately 18,000 barrels of oil per day through an early
production facility. 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 licence 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.


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 4.6 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




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