Gulfsands Petroleum Regulatory News (GPX)

11 Jan 2006 07:00

Gulfsands Petroleum PLC11 January 2006 11 January 2006 Gulfsands Petroleum PLC("Gulfsands" or "the Group") Gulfsands Completes Seismic Acquisition on Block 26, Syria Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,development and production company with activities in the USA, Syria and Iraq,is pleased to announce the completion of the acquisition of 1,155 kilometers of2D seismic on Block 26 in Syria. Seismic Acquisition Gulfsands has completed the acquisition of approximately 1,155 line kilometersof 2D seismic data within Block 26 in which Gulfsands has a 50% working interestand is the operator (a copy of the presentation 'Syria Block 26 2D SeismicProgram' can be found on our website at www.gulfsands.net). This acquisitionprogram exceeds the 500 line kilometer minimum work obligation for the InitialExploration Period. The acquisition program was designed to provide additionalseismic data coverage over several previously identified leads as well as toidentify new leads in selected prospective areas. In the northern portion ofthe Block, these leads include Cretaceous reservoir targets offsetting the largeSouedieh, Rumailan, Hamzeh and Karatchok fields as well as the deeper and highlyprospective Paleozoic reservoir targets. Data acquired in the southwest portionof Block 26 will provide additional seismic coverage over several previouslyidentified Paleozoic reservoir leads. Gulfsands also expects that these datawill aid in the identification of new exploration leads and prospects. Gulfsands is the operator of the Block 26 Production Sharing Contract (PSC) areain Syria. Block 26 is in excess of 11,000 square kilometers (2.8 million acres)and is in the prolific El Hasekah region of Northern Syria. There are a numberof large producing oil fields contained within Block 26, including Souedieh,Rumailan, Hamzeh and Karatchok. Production is primarily from Cretaceous agereservoirs, and the estimated ultimate recovery from these fields is in excessof 3 billion barrels of oil. Although the current producing intervals withinthese producing fields are not included within the Block 26 PSC, Gulfsands doeshave the rights to reservoirs beneath the existing fields and to all depthsoutside of existing fields within Block 26. Based on existing seismic data andwell control, Gulfsands has identified 31 prospects and leads in Block 26 andthe Company plans to drill a minimum of 4 wells within Block 26 by August 2007. Gulfsands expects that the processing of the seismic data will be completed inthe first quarter of 2006 and interpretation of these data will commenceimmediately thereafter. These data will be used by Gulfsands to select and rankexploration drilling locations. John Dorrier, CEO of Gulfsands Petroleum, said: "Completion of the seismic program in Block 26 is the first step in Gulfsands'aggressive program of exploration in the Block since becoming operator inmid-2005. This seismic data, in conjunction with the program of drillingplanned this year, will yield near-term results that could have a significantpositive effect on the Company's oil and gas reserves." Enquiries:Gulfsands Petroleum (Houston) 001-713-626-9564David DeCort, Chief Financial Officer College Hill (London) 020-7457-2020Ben Brewerton / Nick Elwes Seymour Pierce (London) 020-7107-8000Richard RedmayneJonathan Wright Note to Editors • Gulf of Mexico, USA The Group owns interests in 64 offshore blocks comprising approximately 216,000gross acres which includes 39 producing oil and gas fields offshore Texas andLouisiana with proved and probable reserves of approximately 30.3 billion cubicfeet of natural gas equivalents, consisting of 14.94 billion cubic feet ofnatural gas and 2.56 million barrels of oil as of 30 June 2005 with a netpresent value of approximately $129 million. • Syria In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.The block covers 11,000 square kilometres and surrounds areas which currentlyproduce over 100,000 barrels of oil per day from existing fields. In January2006 the Group completed the acquisition of 1,155 kilometers of 2D seismic andanticipates the drilling of the first well during the first half of 2006.Gulfsands has identified 31 exploitation and exploration prospects and leadswith mean resources potential exceeding 1 billion barrels of recoverable oil. • Iraq Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministryof Oil 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. • Onshore USA Gulfsands operates onshore in the USA through its 80% owned subsidiary companyDarcy Energy LLC. At the Emily Hawes field, initial gas production commenced inthe summer of 2005. The first well in the Barb Mag oil field has been drilledand wireline logged with some 38 feet of potential net pay and production testedat 1.5 million cubic feet of natural gas and 36 barrels of condensate per day.Production from this well should commence during the first quarter of 2006.Darcy Energy has a 34.375% and 37.5% working interest in these fieldsrespectively. This information is provided by RNS The company news service from the London Stock Exchange