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Gulfsands Commences Drilling Khurbet East -2 Appraisal Well in Syria

Source: www.gulfoilandgas.com 6/15/2007, Location: Middle East

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Gulfsands Petroleum plc commenced drilling the Khurbet East ("KHE-2") appraisal well within Block 26, Syria on Thursday, 14 June. Gulfsands, the operator and 50% working interest owner in Block 26, Syria, has commenced drilling the KHE-2 well to appraise and evaluate the Tertiary Chilou and Cretaceous Massive reservoirs encountered in the KHE-1 discovery well. The total drilling depth of the KHE-2 well is expected to be approximately 2,050 metres and will require approximately 45 days to drill and evaluate.

The Cretaceous Massive Formation in KHE-1 contained approximately 22 metres of net oil pay over a 25 metre gross interval based on wireline log interpretation, reservoir pressure gradients and fluid sample recovery. The oil in this reservoir has an API gravity of approximately 24 degrees, based on PVT analysis of the recovered oil sample. The Massive formation was encountered at 1917 metres depth in the KHE-1 well.

The Tertiary Chilou 'B' Formation contained approximately 26 metres of net oil pay in the KHE-1, based on wireline log interpretation. The Chilou 'B' Formation was encountered at 1316 metres depth in the KHE-1 well.

The KHE-2 well will also provide further information on the lateral extent and continuity of these reservoirs.

The Company expects to provide the final results from KHE-2 in early August.

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