Gulfsands Petroleum Regulatory News (GPX)

28 Mar 2007 07:01

Gulfsands Petroleum PLC28 March 2007 Drilling Update - Khurbet East Well, Syria London, 28th March, 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 provide the following update on the Khurbet East ("KHE-1") exploration well in Syria Block 26, where Gulfsands is operator andowner of 50% interest. The KHE 1 well commenced drilling in mid February and is scheduled to take 100days to drill and evaluate to a planned total depth of approximately 3,700metres. The Khurbet East prospect is a fault-bound structural culmination, with closuremapped at multiple potential reservoir levels. The well is locatedapproximately 12 kilometres southwest of the Souedieh Oil Field and 12kilometres south of the Roumelan Oil Field. Currently, drilling is on schedule at a depth of 2450 metres. Cretaceous Massive Formation The top of the Cretaceous Massive Formation was encountered at 1,917 metres anda series of drilling breaks and live oil shows were observed. The Companycontinued drilling to a depth of 2,203 metres and then made a decision to runintermediate wireline logs as well as wireline pressure testing and fluidrecovery. Independent wireline log analysis of the Massive interval indicates a gross oilcolumn of some 31 metres with approximately 22.5 metres of net oil pay. Thewireline pressure measurements also recorded an oil gradient across theinterval. An oil sample was obtained and had a measured API gravity of 21degrees at surface conditions. PVT analyses of the oil samples are currentlybeing undertaken. Chilou Formation Prior to drilling the Massive Formation the Company drilled through the Tertiaryaged Chilou 'B' Formation, which was encountered below 1319 metres. Afterencountering oil shows and drilling breaks that indicated potential reservoirs,the Company successfully acquired approximately 8.5 meters of whole core fromwithin the Chilou 'B' Formation. Routine core analyses, including oilextractions and porosity and permeability measurements, are underway. Wirelinelogs were also acquired over this reservoir interval but due to the large holesize required in this early portion of the wellbore it was not feasible to runpressure tests or fluid recovery. Independent wireline log analysis of the Chilou intervals indicates some 26.4metres of net oil pay of which some 19 metres are contiguous in the top of theChilou 'B' formation. These net oil pay figures, the quality and moveability ofthe oil will have to be confirmed with later testing. Following wireline logging, 13 3/8" casing was set over the Chilou intervals toa depth of approximately 1904 metres and the Company continued drilling ahead tothe Massive Formation as noted above. The Company has resumed drilling ahead in this well in order to evaluate theunderlying Triassic and Palaeozoic Formations. Gulfsands' CEO, John Dorrier, said: "We are encouraged by the results to date in the Massive and Chilou Formations.We look forward to reaching our deeper objectives in the Triassic and thePalaeozoic Formations. However, only after penetrating these further objectivesand reaching target depth will we conduct production testing operations. Theultimate commerciality of the hydrocarbons encountered at Khurbet East can onlybe determined after further work including production testing and appraisaldrilling." NB: This release has been approved by Jason Oden, Gulfsands Exploration Manager,who has a Bachelor of Science degree in Geophysics with 22 years of experiencein petroleum exploration and management and is registered as a ProfessionalGeophysicist. Mr. Oden has consented to the inclusion of the material in theform and context in which it appears. Certain statements included herein constitute "forward-looking statements"within the meaning of applicable securities legislation. These forward-lookingstatements are based on certain assumptions by Gulfsands and as such are not aguarantee of future performance. Actual results could differ materially fromthose expressed or implied in such forward-looking statements due to factorssuch as general economic and market conditions, increased costs of production ora decline in oil and gas prices. Gulfsands is under no obligation to update orrevise any forward-looking statements, whether as a result of new information,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 http://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) 020-7426-9000James Maxwell (Corporate Finance)Tanya Clarke (Specialist Sales) This information is provided by RNS The company news service from the London Stock Exchange