12 Jul 2010 07:00
| Immediate Release | 12th July 2010 |
GULFSANDS PETROLEUM PLC
Tunisia Update - Drilling of Lambouka-1 Commences
London, 12th July, 2010: Gulfsands Petroleum plc ("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and gas production, exploration and development company with activities in Syria, Iraq, Tunisia, Italy and the U.S.A., is pleased to announce that ADX Energy Ltd (ASX:ADX) the operator of the Kerkouane Exploration Licence offshore Tunisia (Kerkouane Licence) has advised of the commencement of drilling operations on the Lambouka-1 well on the Lambouka Prospect in the Sicily Channel.
ADX Energy has estimated the mean prospective resource for the Lambouka Prospect at 270 million barrels oil equivalent ("MMBOE") with the primary objectives for the well being the Miocene aged Birsa Formation and the Cretaceous aged Abiod Formation. (See announcement of 18th May 2010 for further details on the Lambouka Prospect).
Drilling of the Lambouka-1 well is being carried out by the Atwood "Southern Cross" semi-submersible drilling rig and it is expected to take approximately 35 days to drill and evaluate this well.
Gulfsands is acquiring a 30% participating interest in the Kerkouane Licence and the adjacent Pantelleria Permit which lies in the Sicily Channel in Italian waters.
Ric Malcolm, Gulfsands CEO, said
"We are pleased to be able to report that the Southern Cross semi-submersible has now commenced drilling operations on the Lambouka-1 well. Lambouka-1 represents our first exploration well in Tunisia and comes ahead of a well to be drilled onshore on the Chorbane licence in the fourth quarter of 2010. We will be reporting on progress with the Lambouka-1 well as appropriate, during the coming month."
This release has been approved by Richard Malcolm, Chief Executive of Gulfsands Petroleum Plc who has a Bachelor of Science degree in Geology with 30 years of experience in petroleum exploration and management. Mr. Malcolm has consented to the inclusion of the technical information in this release in the form and context in which it appears.
For more information please contact:
| Gulfsands Petroleum (London) | +44 (0)20 7434 6060 |
| Richard Malcolm, Chief Executive Officer Andrew Rose, Chief Financial Officer Kenneth Judge, Director: Corporate Development & Communications |
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| Buchanan Communications Limited (London) | +44 (0)20 7466 5000 |
| Bobby Morse Ben Romney Chris McMahon |
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| RBC Capital Markets (London) | +44 (0)20 7653 4000 |
| Josh Critchley Matthew Coakes Martin Eales |
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ABOUT GULFSANDS:
Gulfsands is listed on the AIM market of the London Stock Exchange.
Syria
Gulfsands owns a 50% working interest and is operator of Block 26 in North East Syria. The Khurbet East oil field was discovered in June 2007 and commenced commercial production within 13 months of the discovery. The Yousefieh oil field was discovered in November 2008 and commenced commercial production within 18 months of discovery. These fields are now producing at an average combined gross production rate of approximately 18,000 barrels of oil per day through an early production facility. Block 26 covers approximately 8,250 square kilometres and encompasses existing fields which currently produce over 100,000 barrels of oil per day, and are operated mainly by the Syrian Petroleum Company. The current exploration licence expires in August 2010 and is extendable for a further two years. Gulfsands' working interest 2P reserves in Syria at 31 December 2009 were 46.0 mmbbls.
Iraq
Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry of Oil in Iraq for the Maysan Gas Project in Southern Iraq, following completion of a feasibility study on the project, and is negotiating details of a definitive contract for this regionally important development. The project will gather, process and transmit natural gas that is currently a waste by-product of oil production and as a result of the present practice of gas flaring, contributes to significant environmental damage in the region. The Company is actively engaged in discussions with respect to financing and potential equity partners. Gulfsands has no reserves in Iraq.
Gulf of Mexico, USA
The Company owns interests in 37 leases offshore Texas and Louisiana which include 24 producing oil and gas fields with proved and probable working interest reserves at 31 December 2009 of 4.6 mmboe.
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities legislation. These forward-looking statements are based on certain assumptions made by Gulfsands and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production or a decline in oil and gas prices. Gulfsands is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
More information can be found on the Company's website www.gulfsands.com