Gulfsands Petroleum Regulatory News (GPX)

29 Jun 2005 07:00

Gulfsands Petroleum PLC29 June 2005 Gulfsands Petroleum PLC("Gulfsands" or "the Group") Gulfsands Executes Seismic Contract 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 executed a seismic acquisition contract with Geofizika D.D. toacquire new 2D seismic within Block 26, Syria. Geofizika D.D. is an experiencedseismic acquisition company with over 40 years experience conducting seismicsurveys in the Middle East. They have been working in Syria for other operatorsincluding INA-Naftaplin and most recently PetroCanada on Block 2 which isadjacent to Block 26. The Group plans to commence the seismic acquisition of some 1,170 kilometers of2D seismic within the next 45 days. After processing and interpreting the newseismic data, the Group plans to choose its first exploration drill-sites andcommence drilling of the first exploration well on Block 26 during the firstquarter 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 soquickly after taking over operations from Devon Energy in late May. Thisachievement reflects a concerted effort by Gulfsands' Damascus office, ourpartner SoyuzNefteGas, and the Syrian Petroleum Company. We expect the newseismic will enable us to prioritize the prospect inventory and choose the bestdrill-sites for the first wells prior to beginning drilling operations in early2006." 29 June 2005 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 is planning the acquisition of anextensive 2D seismic programme and the drilling of the first well by the firstquarter of 2006. 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 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 expects to conductfurther technical work and commercial discussions with the Iraq Oil Ministry inthe 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 thesummer of 2005. The first well in the Barb Mag oil field is expected to bedrilled in the third 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