Gulfsands Petroleum Regulatory News (GPX)

2 Aug 2005 08:31

Gulfsands Petroleum PLC02 August 2005 2 August 2005 Gulfsands Petroleum PLC("Gulfsands" or "the Group") Gulfsands Commences Seismic Acquisition in Syria Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,development and production company with activities in the USA, Syria and Iraqannounces it has commenced operations with Geofizika D.D. to acquire new 2Dseismic within Block 26, Syria. Geofizika D.D. is a seismic acquisition companywith over 40 years experience conducting seismic surveys in the Middle East. Ithas been working in Syria for other operators including INA-Naftaplin and mostrecently PetroCanada on Block 2 which is adjacent to Block 26. The Group will acquire some 1,170 kilometers of 2D seismic over the next threeto four months, followed by processing and interpreting the new seismic data, sothe Group can commence drilling of the first exploration well on Block 26 duringthe first quarter of 2006. Gulfsands owns a 50% working interest in Block 26 and is the operator. The blockcovers 11,000 square kilometers and surrounds areas which currently produce over100,000 bopd from existing fields. The Group has identified 27 exploitation andexploration prospects and leads with mean resources potential of 1 billionbarrels of recoverable oil. John Dorrier, CEO of Gulfsands Petroleum, said: "We are pleased to be moving forward with the Block 26 seismic program so soonafter taking over operations from Devon Energy in late May. This achievementreflects a concerted effort by Gulfsands' Damascus office, our partnerSoyuzNefteGas, and the Syrian Petroleum Company. We expect the new seismic willenable us to prioritize the prospect inventory and choose the best drill-sitesfor the first wells prior to beginning drilling operations in early 2006." Enquiries: Gulfsands Petroleum (Houston) 713-626-9564David DeCort, Chief Financial Officer College Hill (London) 020-7457-2020Ben Brewerton / Jim Joseph Seymour Pierce (London) 020-7107-8000Richard RedmayneJonathan Wright Note to Editors • Gulf of Mexico, USA The Group 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 as of 1 November 2004. • Syria In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.The block covers 11,000 sq kms and surrounds areas which currently produce over100,000 bopd from existing fields. The Group has contracted for the acquisitionof an extensive 2D seismic programme during the summer of 2005 and the drillingof the first well during the first quarter of 2006. Gulfsands has identified 27exploitation and exploration prospects and leads with mean resources potentialof 1 billion barrels of recoverable oil. • Iraq Gulfsands has recently signed a Memorandum of Understanding with the Ministry ofOil in Iraq for the Misan Gas Project in Southern Iraq and is currentlynegotiating the definitive contract for the project. The project will gather,process and transmit natural gas that is currently a waste by-product of oilproduction in the region and will end the environmentally damaging practice ofgas flaring. Gulfsands has completed a feasibility study and is conductingfurther technical work and commercial discussions with the Iraq Oil Ministry. • Onshore USA Gulfsands operates onshore USA through its subsidiary company Darcy Energy LLC. At the Emily Hawes field, which has previously produced approximately 1.7 bcfof natural gas before being shut-in, gas production is scheduled to commence inthe summer of 2005. The first well in the Barb Mag oil field commenced drillingin early July 2005. Darcy Energy has a 25% and 37.5% working interest in thesefields respectively. This information is provided by RNS The company news service from the London Stock Exchange