Immediate Release 27 May 2009 GULFSANDS PETROLEUM PLC SYRIA OPERATIONS UPDATE London, 27th May 2009: Gulfsands Petroleum plc ("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and gas production, exploration and development company with activities in Syria, Iraq, and the U.S.A., is pleased to provide the following operations update for Block 26, Syria. * Drilling of the Khurbet East No.10 (KHE-10) development well has commenced. The well is designed to be a horizontal producer approximately 700 metres northwest of the KHE-9 location * Gross production from the Khurbet East Oil Field has reached 3 million barrels. * 3D seismic acquisition of 850 square kilometres has now been completed KHE-10 Development Well Drilling operations at KHE-10 has commenced at a surface location approximately 80 metres north of the recently completed vertical KHE-9 well. The KHE-10 well will be deviated to a bottom-hole location offset approximately 700 metres towards the northwest and is designed as a horizontal producer. This will be the second of three development wells programmed for 2009, all of which will be targeting the highly productive central portion of the field. These three producers will provide the additional oil required to bring production rates up from a recent average of approximately 10,800 barrels of oil per day (bopd) to an end of 2009 production rate of approximately 16,000 bopd following expansion of processing capacity of the Khurbet East Early Production Facility to a capacity of approximately 18,000 barrels of fluid per day. Production start-up is expected early in the third quarter. Khurbet East Oil Production Gross oil production from the Khurbet East Oil Field has reached a cumulative 3 million barrel milestone. The Field continues to perform above expectations with strong pressure support and high productivity from producing wells. Exploration 3D Seismic Programme Acquisition of the 850 square kilometre 3D seismic programme has now been completed on time and within budget. Data is being transferred to PGS in Cairo for processing. Delivery of final processed data is expected late in the third quarter of 2009, with interpretation of these data to commence immediately thereafter. Ric Malcolm, Gulfsands CEO, said "It is pleasing that development drilling is on schedule at Khurbet East in preparation for an increase in field production rates early in the third quarter. Also pleasing is the excellent production performance of the Khurbet East Field and reaching another important milestone. Completion of the 3D acquisition should now set the framework for a potentially active exploration programme in 2010". This release has been approved by Richard Malcolm, Chief Executive of Gulfsands Petroleum Plc who has a Bachelor of Science degree in Geology with 29 years of experience in petroleum exploration and management. Mr. Malcolm has consented to the inclusion of the technical information in this release in the form and context in which it appears. For more information please contact: Gulfsands Petroleum (London) +44 (0)20 7434 6060 Richard Malcolm, Chief Executive Officer Kenneth Judge, Director of Corporate Development +44 (0)7733 001 002 & Communications Buchanan Communications Limited (London) +44 (0)20 7466 5000 Bobby Morse Ben Romney RBC Capital Markets (London) +44 (0)20 7653 4667 Sarah Wharry ABOUT GULFSANDS: Gulfsands is listed on the AIM market of the London Stock Exchange. Syria Gulfsands owns a 50% working interest and is operator of Block 26 in North East Syria. The Khurbet East oil field was discovered in June 2007 and commenced commercial production within 13 months of the discovery. This field is producing at an average production rate of approximately 10,800 barrels of oil per day through an early production facility. Block 26 covers approximately 8,250 square kilometres and encompasses existing fields which currently produce over 100,000 barrels of oil per day, and are operated mainly by the Syrian Petroleum Company. The current exploration license expires in August 2010 and is extendable for a further two years. Gulfsands' working interest 2P reserves in Syria at 31 December 2008 were 35.2 mmbbls. 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, following completion of a feasibility study on the project, and is negotiating details of a 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. The Company is actively engaged in discussions with respect to financing and potential equity partners. Gulfsands has no reserves in Iraq. Gulf of Mexico, USA The Company owns interests in 44 blocks comprising approximately 138,000 gross acres offshore Texas and Louisiana, which include 30 producing oil and gas fields with proved and probable working interest reserves at 31 December 2008 of 5.1 mmboe. 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. More information can be found on the Company's website ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.