Half-Yearly Financial Report – June 2011September 19th, 2011

Gulfsands Petroleum plc

Half-Yearly Financial Report

SIX MONTHS TO 30 JUNE 2011

Unaudited

Half-Yearly Results for the Six Months Ended 30 June 2011

 

HIGHLIGHTS

Operations

  • Average Group working interest production 10,923 boepd vs. 9,689 boepd in H1 2010
  • Syrian working interest production in August averaged 12,050 bopd vs. 10,300 bopd in January
  • 4 exploration wells drilled in Syria with 2 discoveries
  • 2 development wells successfully drilled : KHE-19H produced a record 5,516 bopd on test

Financial

  • Revenue up by 53% to $78.6 million (H1 2010: $51.4 million)
  • Profit after tax up by 87% to $31.2 million (H1 2010: $16.7 million)
  • Net Cash from Operating Activities up by 103% to $56.6 million (H1 2010: $27.9 million)
  • Third tranche of US assets sold post 30 June realising $10.7 million
  • Net free cash at 30 June of $123.1 million (31 Dec 2010 : $80.6 million)

Outlook

  • 3 more exploration wells to be drilled before year-end : 2 in Syria and 1 in Tunisia (underway)
  • Gulfsands pre-qualified to participate in upcoming bid round for 12 exploration blocks in Iraq
  • Uncertainty exists as to the production outlook for the remainder of the year as the Syrian government adapts to the sanctions imposed by the US and EU

For further information please contact:

Gulfsands Petroleum (London)
Richard Malcolm, Chief Executive Officer
Andrew Rose, Chief Financial Officer
Kenneth Judge, Director of Corporate Development
+44 (0)20 7434 6060

Buchanan (London)
Bobby Morse
Ben Romney
Helen Chan
+44 (0)20 7466 5000

RBC Europe Limited
Josh Critchley
Matthew Coakes
Martin Eales
+44 (0)20 7653 4000

These half-year results, can be found under the Financial Statements section of this website.