Gulfsands participates in successful well at Eugene Island 38

Gulfsands Petroleum plc has discovered natural gas in multiple pay zones in the EI38 #17 well, located in the Eugene Island protraction area within the Gulf of Mexico.

This is Gulfsands second success in the area with in a month time as the last month also the company had discovered gas from the EI57 #16 well.

The EI38 #17 well was drilled to a total measured depth of 12,292′ (11,443′ TVD).

Gulfsands’ preliminary analysis of the well logs indicates total net pay of approximately 121′ from multiple pay zones within high quality Miocene aged reservoirs.

The hydrocarbons encountered are natural gas with associated condensate. Production casing has been set and the well is being prepared for tie-in to the EI57 offshore platform.

Gulfsands owns a 24.99% working interest in the EI38 #17 well. Total cost to drill and run production casing was approximately $4.83 million (Gulfsands net $1.21 million).

Production from this well is expected to commence in August 2008.