Gulfsands Petroleum Regulatory News (GPX)

8 Apr 2005 08:00

Gulfsands Petroleum PLC08 April 2005 Gulfsands Petroleum PLC ("Gulfsands" or "the Company") Dealings Commence & Admission to AIM Gulfsands Petroleum PLC is the holding company of an oil and gas exploration,development and production group based in Houston, Texas. Its activities arecurrently focused in the USA, Syria and Iraq. Dealings have commenced this morning on AIM and the company had a marketcapitalisation of approximately £120 million at the placing price. Gulfsands has placed 24,300,000 new ordinary shares at an issue price of 130pper share to raise £29.8 million (net of expenses). Seymour Pierce Limited acted as nominated adviser and broker to the Company. John Dorrier, Chief Executive of Gulfsands, said: "We have had a very good response from the market. The proceeds will enable usto finance our planned exploration and development programme in Syria and the USand will also finance the next phase of the Misan project in Iraq. In addition,it gives us the scope to acquire additional opportunities in Iraq and the restof the Middle East as they arise. The Misan project is progressing. A definitive contract has been tabled withthe Iraq Ministry of Oil and a meeting in Houston is planned in the comingweeks." 8 April 2005 Enquiries: College Hill 020 7457 2020 Ben Brewerton / Jim Joseph Seymour Pierce 020 7107 8000 Richard Redmayne Jonathan Wright Note to Editors • Gulf of Mexico, USA The Company has a 52.6% interest in Northstar Gulfsands, which owns interests in39 producing oil and gas fields offshore Texas and Louisiana and operates 8 ofthose fields. Northstar Gulfsands has proved and probable reserves of 4.7 mmbblsof oil and some 29.2 bcf of gas. • Syria In Syria, Gulfsands has a 20% interest in Block 26 through a venture with DevonEnergy. The block covers 11,000 sq kms and surrounds areas which currentlyproduce over 100,000 bopd from existing fields. The Company is planning theacquisition of an extensive 2D seismic programme and the drilling of the firstwell during 2005. Gulfsands has identified 27 exploitation and explorationprospects and leads with mean resources potential of 1 billion barrels ofrecoverable oil. • Iraq Gulfsands has recently signed a Memorandum of Understanding with the Ministry ofOil in Iraq for the Misan Gas Project in Southern Iraq. The project willgather, process and transmit natural gas that is currently a waste by-product ofoil production in the region and will end the environmentally damaging practiceof gas flaring. Gulfsands has completed a feasibility study and expects toconduct further technical work and commercial discussions with the Iraq OilMinistry in the first half of 2005. • Onshore USA At the Emily Hawes field, which has previously produced approximately 1.7 bcf ofnatural gas before being shut-in, gas production is expected to start during thefirst half of 2005. The first well in the Barb Mag oil field is expected to bedrilled in the second quarter of 2005. Darcy Energy has a 25% and 37.5% workinginterest in these fields respectively. This information is provided by RNS The company news service from the London Stock Exchange