|November 20, 2007|
Khurbet East 3 appraisal well commences in Syria
|London, 20th November, 2007: Gulfsands Petroleum plc ("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and gas production, exploration and development company with activities in the U.S.A., Syria and Iraq is pleased to announce that the Company has commenced drilling the Khurbet East 3 ("KHE-3") appraisal well within Block 26, Syria.|
Gulfsands, the operator and 50% working interest owner in Block 26, has commenced drilling the KHE-3 well to further appraise the Cretaceous Massive reservoirs encountered in both the Khurbet East 1 ("KHE-1") discovery well and the Khurbet East 2 ("KHE-2") appraisal well.
The drilling of this well will assist in the planning for early development and production of the Massive reservoir in Khurbet East scheduled for the second half of 2008. To date, there has been no clear oil-water contact seen in either well and no formation water has been recovered.
The total drilling depth of the KHE-3 well is expected to be approximately 2,050 metres. The well will require approximately 45 days to drill and evaluate at a gross cost, including rig mobilisation and demobilisation, of approximately $2.4 million ($1.2 million net to Gulfsands).
For further information please view the presentation on the Khurbet East Field located on the Company's website at www.gulfsands.net.
Gulf of Mexico, USA
The Company owns interests in 54 offshore blocks comprising approximately 193,000 gross acres which includes numerous producing oil and gas fields offshore Texas and Louisiana with proved and probable recoverable reserves net to Gulfsands at 31 December 2006 of 41.5 BCFGE (6.9 MMBOE), consisting of 27.3 BCFG and 2.36 MMBO.
Gulfsands owns interests in two oil and gas fields onshore Texas, USA (98.5% working interest in Emily Hawes Field and 37.5% working interest in Barb Mag Field) with proved and probable recoverable reserves net to Gulfsands at 31 December 2006 of 3.1 BCFGE (0.5 MMBOE), consisting of 2.8 BCFG and 57,000 barrels of oil.
Gulfsands owns a 50% working interest and is operator of Block 26 in North East Syria. Block 26 covers approximately 8,250 square kilometres and encompasses existing fields which currently produce over 100,000 barrels of oil per day. These fields are operated by third parties including the Syria Petroleum Company. In the first half of 2007 Gulfsands announced an oil and gas discovery on Block 26 called Khurbet East. This discovery is currently under appraisal. The Company initiated the first extension period of exploration on Block 26 for a further period of three years commencing on 23 August 2007. The Company has also formed a strategic partnership with Cham Holding for acquiring oil and gas projects in Syria and Iraq.
Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry of Oil in Iraq for the Maysan Gas Project in Southern Iraq and following completion of a feasibility study on the project is negotiating details of definitive contract for this regionally important development. The project will gather process and transmit natural gas that is currently a waste by-product of oil production and as a result of the present practice of gas flaring, contributes to significant environmental damage in the region.
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities legislation. These forward-looking statements are based on certain assumptions made by Gulfsands and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production or a decline in oil and gas prices. Gulfsands is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
For further information, please refer to the Company's website www.gulfsands.net or contact:
Gulfsands Petroleum (Houston) + 1-713-626-9564
John Dorrier, Chief Executive Officer
David DeCort, Chief Financial Officer
Gulfsands Petroleum (London) 020-7182-4016
Kenneth Judge, Director of Corporate Development 07733-001-002
College Hill (London) 020-7457-2020
Landsbanki Securities (UK) Limited (London) 020-7426-9000
Jeff Keating / Tom Hulme (Corporate Finance)
You can view the Next News Releases item: Mon Jan 7, 2008, KHE-3 appraisal well testing averages 3,420 bopd
You can view the Previous News Releases item: Mon Nov 5, 2007, 3D seismic programme commences over Khurbet East Field
You can return to the main News Releases page, or press the Back button on your browser.