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Gulfsands to Commence Testing of Triassic reservoirs

Source: www.gulfoilandgas.com 5/18/2007, Location: Middle East

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Gulfsands Petroleum plc announced that the Khurbet East ("KHE-1") exploration well in Syria Block 26, which commenced drilling in mid February, has reached total depth on schedule. Gulfsands is operator and owner of a 50% interest in Block 26.

Triassic Reservoirs

The KHE-1 well has reached a total drilling depth of 3,800 metres and electric wireline logs have been acquired. The Company has identified several zones of interest within the Triassic aged reservoirs below 2,800 metres depth. Production testing of these zones is expected to commence shortly. A further update will be provided once testing has been completed and the results evaluated.

Tertiary and Cretaceous Reservoirs

On 28th March 2007 the Company provided an update on drilling the Tertiary Chilou (approximately 1,319 metres depth) and Cretaceous Massive Formation (approximately 1,917 metres depth) in the KHE-1, where wireline logs indicated net oil pay within those formations totaling 48.9 metres. In addition, wireline pressure testing recorded an oil gradient in the Massive and an oil sample was obtained in the Massive with an initial estimated API gravity of 21 degrees at surface conditions.

Khurbet East 2 Appraisal Well

The Company will drill an appraisal well Khurbet East (KHE-2), to evaluate the Tertiary Chilou and Cretaceous Massive reservoirs within a well-bore designed specifically for those reservoirs. The KHE-2 well will also provide additional information on the continuity and lateral extent of the reservoirs.

The Company has extended the contract for the Crosco 602 rig, currently drilling KHE-1, to enable the new well to spud immediately following completion of operations on KHE-1. This is currently anticipated to occur in early June.

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