Gulfsands Petroleum Regulatory News (GPX)

19 Feb 2007 07:01

Gulfsands Petroleum PLC19 February 2007 Khurbet East Well Commences in Syria London, 19th February, 2007: Gulfsands Petroleum plc (AIM: GPX), the oil andgas production, exploration and development company with activities in theU.S.A., Syria and Iraq is pleased to announce that the Company has commenceddrilling the Khurbet East ("KHE 1") exploration well within Block 26, Syria. Gulfsands, the operator and 50% working interest owner in Block 26, Syria, hascommenced the drilling of the KHE 1 exploration well located in the northeastregion of Block 26. The KHE 1 prospect is a fault-bound structural culmination,with closure mapped at multiple potential reservoir levels. These includereservoirs of Cretaceous, Triassic and Palaeozoic age. The well is locatedapproximately 12 kilometers southwest of the Souedieh Oil Field and 12kilometers south of the Roumelan Oil Field. The total drilling depth of the KHE1 well is expected to be approximately 3,700 metres and will requireapproximately 100 days to drill and evaluate at an estimated cost of $7.2million, or $3.6 million net to Gulfsands. After drilling the KHE 1 well, the Company is planning to drill its fourth "commitment well" on Block 26 following the return to Gulfsands of the highpowered rig used for drilling the Tigris-1 well, which is anticipated to occuraround July 2007. Gulfsands' CEO, John Dorrier, said: "The Company's PSC conveys rights to all depths in the Khurbet East area, so theprospect has potential in multiple zones including the proven productivereservoirs of Cretaceous and Triassic age in the fields just north and east ofthe prospect location, as well as potential reservoirs in the Palaeozoic. Inthe event of an oil or gas discovery at Khurbet East, commercialisation would berelatively straightforward through production infrastructure located only 12kilometers away near Roumelan Field." 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 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