Gulfsands Petroleum Regulatory News (GPX)

15 Jun 2007 07:01

Gulfsands Petroleum PLC15 June 2007 Khurbet East -2 Appraisal Well Commences in Syria London, 15th June, 2007: Gulfsands Petroleum plc (AIM: GPX), the oil and gasproduction, exploration and development company with activities in the U.S.A.,Syria and Iraq is pleased to announce that the Company commenced drilling theKhurbet East ("KHE-2") appraisal well within Block 26, Syria on Thursday, 14June. Gulfsands, the operator and 50% working interest owner in Block 26, Syria, hascommenced drilling the KHE-2 well to appraise and evaluate the Tertiary Chilouand Cretaceous Massive reservoirs encountered in the KHE-1 discovery well. Thetotal drilling depth of the KHE-2 well is expected to be approximately 2,050metres and will require approximately 45 days to drill and evaluate. The Cretaceous Massive Formation in KHE-1 contained approximately 22 metres ofnet oil pay over a 25 metre gross interval based on wireline log interpretation,reservoir pressure gradients and fluid sample recovery. The oil in thisreservoir has an API gravity of approximately 24 degrees, based on PVT analysisof the recovered oil sample. The Massive formation was encountered at 1917metres depth in the KHE-1 well. The Tertiary Chilou 'B' Formation contained approximately 26 metres of net oilpay in the KHE-1, based on wireline log interpretation. The Chilou 'B'Formation was encountered at 1316 metres depth in the KHE-1 well. The KHE-2 well will also provide further information on the lateral extent andcontinuity of these reservoirs. The Company expects to provide the final results from KHE-2 in early August. ABOUT GULFSANDS: Gulf of Mexico, USA The Company owns interests in 54 offshore blocks comprising approximately193,000 gross acres which includes numerous producing oil and gas fieldsoffshore Texas and Louisiana with proved and probable recoverable reserves netto Gulfsands at 31 December 2006 of 41.5 BCFGE (6.9 MMBOE), consisting of 27.3BCFG 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 MagField) with proved and probable recoverable reserves net to Gulfsands at 31December 2006 of 3.1 BCFGE (0.5 MMBOE), consisting of 2.8 BCFG and 57,000barrels of oil. Syria Gulfsands owns a 50% working interest and is operator of Block 26 in North EastSyria. Block 26 covers 11,000 square kilometres and encompasses existing fieldswhich currently produce over 100,000 barrels of oil per day. These fields areoperated by third parties including the Syria Petroleum Company. Iraq Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministryof Oil in Iraq for the Misan Gas Project in Southern Iraq and followingcompletion of a feasibility study on the project is negotiating details ofdefinitive contracts for this regionally important development. The project willgather process and transmit natural gas that is currently a waste by-product ofoil production and as a result of the present practice of gas flaring,contributes to significant environmental damage in the region. Certain statements included herein constitute "forward-looking statements"within the meaning of applicable securities legislation. These forward-lookingstatements are based on certain assumptions made by Gulfsands and as such arenot a guarantee of future performance. Actual results could differ materiallyfrom those expressed or implied in such forward-looking statements due tofactors such as general economic and market conditions, increased costs ofproduction or a decline in oil and gas prices. Gulfsands is under no obligationto update or revise any forward-looking statements, whether as a result of newinformation, future events or otherwise, except as required by applicable laws. For further information including the Company's recent investor presentation,please refer to the Company's website www.gulfsands.net or contact: Gulfsands Petroleum (Houston) + 1-713-626-9564John Dorrier, Chief Executive OfficerDavid DeCort, Chief Financial Officer Gulfsands Petroleum (London) 020-7182-4016Kenneth Judge, Director of Corporate Development 07733-001-002 College Hill (London) 020-7457-2020Nick ElwesPaddy Blewer Teather & Greenwood (London) 020-7426-9000Tom Hulme (Corporate Finance)Tanya Clarke (Specialist Sales) This information is provided by RNS The company news service from the London Stock Exchange