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Gulfsands Announces Khurbet East Early Production Facility Construction Completed

Source: www.gulfoilandgas.com 7/2/2008, Location: Middle East

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Gulfsands Petroleum announced that construction and installation of the 10,000 bpd Early Production Facility for the Khurbet East Field has now been completed. Handover of this facility has been achieved less than five months after approval was granted for the development of the Khurbet East field.

Gulfsands, the Operator of Syria Block 26 and Dijla Petroleum Company, the jointly owned company established with Syria Petroleum Company ("SPC") to act as the "joint operating company" under the terms of the Production Sharing Contract for Block 26, are now proceeding with pressure testing of the Early Production Facility and well tie-in operations. Initial well tie-in operations will include the KHE-4, KHE-5H and KHE-6H development wells which were completed as production wells.

Following the tie-in of these development wells, the KHE-2 and KHE-3 appraisal wells will be re-entered to be completed as production wells for tie-in to the Early Production Facility. It is expected that completion operations for the KHE-2 and KHE-3 wells will commence in mid July and be completed by early August.

Accordingly, Gulfsands is anticipating the commencement of oil production during the month of August 2008, well ahead of the schedule contemplated when development approval was granted in mid February, 2008.

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