Gulfsands to develop Khurbet discovery

Gulfsands Petroleum plc has received approval from the Syrian Ministry of Oil and Mineral Resources and the Syrian Petroleum Company (”SPC”) for commercial development of the Khurbet East Field. Development of the Cretaceous Massive Reservoir (”Massive Reservoir”) within the Field will commence immediately.

The Khurbet East Oil Field is within Block 26 in North East Syria. Gulfsands is the operator, on behalf of the Block 26 Contractor group (”Contractor”), and owns a 50% working interest in Block 26 subject to the terms of the Contract for the Exploration and Development and Production of Petroleum for Block 26 (the “Contract”). A map and details of the Khurbet East Oil Field are available on the Company’s website: www.gulfsands.net.

The Company has also received the first Reserves report for the Massive Reservoir in the Khurbet East Field which estimates gross life-of-field Proved and Probable (”2P”) Reserves of the Massive Reservoir as 66 million barrels of oil and gross life-of-field Proved, Probable and Possible (”3P”) Reserves as 143 million barrels of oil. Gulfsands’ share of net attributable reserves is explained below in the section of this announcement headed “Khurbet East Reserves”.