Gulfsands Petroleum Regulatory News (GPX)

5 Nov 2007 07:01

Gulfsands Petroleum PLC05 November 2007 3D seismic programme commences over Khurbet East Field Updated Khurbet East and corporate presentation on website London, 5th November, 2007: Gulfsands Petroleum plc ("Gulfsands", the "Group" orthe "Company" - AIM: GPX), the oil and gas production, exploration anddevelopment company with activities in the U.S.A., Syria and Iraq is pleased toannounce that the Company has commenced with the 3D seismic programmes over theKhurbet East Field as well as an exploration area to the south of the field. 3D Seismic The Company has commenced the following 3D seismic acquisition programmes inBlock 26. Approximately 160 square kilometres of 3D seismic data is being acquired overthe Khurbet East Field which will: • Assist in defining the limits of the Khurbet East Field, • Allow for optimization of development well locations, and • Provide additional data over leads immediately adjacent to the Khurbet East Field that have been identified on existing 2D seismic data. An additional 240 square kilometres of 3D seismic data to the south of KhurbetEast is also being acquired. This data will evaluate previously identifiedexploration leads for developing "drill ready" targets south of Khurbet East andwithin the Khurbet East "play fairway". The seismic acquisition programmes are expected to be completed in January 2008with processing and interpretation following during the first half of 2008. Website Presentation Gulfsands has prepared a brief presentation on the Khurbet East Field which canbe viewed on the Company's website at www.gulfsands.net. This presentationincludes drilling and logging results to date for both the KHE-1 and KHE-2wells, the forward programme for the Field including expected timing of firstoil production, and an analysis of oil revenue distribution under the Block 26Contract for the Exploration, Development and Production of Petroleum.Additionally, on the Company's website there is an updated corporatepresentation available for viewing. Gulfsands' CEO, John Dorrier, said: "The 3D seismic surveys at Khurbet East and adjacent areas will provide keyinformation for accelerated development of the field, and provide additionalexploration targets for near-term drilling. The Company anticipates movingforward aggressively with Khurbet East development activities in 2008 with theintention of achieving first production there in the second half of the year.The Company also plans to continue its exploration of Block 26 by drilling newexploration prospects during 2008." 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 approximately 8,250 square kilometres and encompassesexisting fields which currently produce over 100,000 barrels of oil per day.These fields are operated by third parties including the Syria PetroleumCompany. In the first half of 2007 Gulfsands announced an oil and gas discoveryon Block 26 called Khurbet East. This discovery is currently under appraisal.The Company initiated the first extension period of exploration on Block 26 fora further period of three years commencing on 23 August 2007. The Company hasalso formed a strategic partnership with Cham Holding for acquiring oil and gasprojects in Syria and Iraq. Iraq Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministryof Oil in Iraq for the Maysan Gas Project in Southern Iraq and followingcompletion of a feasibility study on the project is negotiating details ofdefinitive contract 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, please refer to the Company's website www.gulfsands.netor contact: Enquires 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 ElwesSimon Whitehead Landsbanki Securities (UK) Limited (London) 020-7426-9000Jeff Keating / Tom Hulme (Corporate Finance) This information is provided by RNS The company news service from the London Stock Exchange