Immediate Release 16 June 2009
GULFSANDS PETROLEUM PLC
OPERATIONS UPDATE
London, 16th June 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 announce that drilling operations on
the KHE-10 horizontal well ("KHE-10") have been successfully
completed and the well will be tied into the Khurbet East Early
Production Facility ("EPF"). Production from this well is expected
to commence in July.
The KHE-10 well was spudded on 21st May at a surface location
approximately one kilometre south of KHE-1, the original Khurbet East
discovery well. KHE-10 is the second of three development wells
planned to support the expansion of the Khurbet East EPF. The well
was drilled to a total measured depth of 2329 metres or 1926 metres
true vertical depth (TVD) and encountered the top of the oil bearing
Cretaceous Massive reservoir at 1,927 metres consistent with the
pre-drill prediction. A horizontal section of approximately 260
metres of Cretaceous Massive Formation was penetrated within the
uppermost part of the reservoir with properties consistent with
reservoirs evaluated in the other high performance wells in the
central portion of the Khurbet East Field.
Tie-in operations will now commence on KHE-10 and the previously
drilled KHE-9 well with production from these wells expected to begin
during July coincident with the completion of the expansion of the
Khurbet East EPF. As the KHE-10 well will be tied into the
production facility immediately, a drill-stem test of the well was
not undertaken.
The drilling rig will now move on to drill KHE-11, the third well in
the current three well development drilling programme.
Ric Malcolm, Gulfsands CEO, said
"The successful and timely drilling of the first two development
wells within high quality oil bearing reservoir keeps plans on track
for oil production through the Early Production Facility to be
increased from the current rate of approximately 10,700 barrels of
oil per day and achieve the year end target rate of 16,000 barrels of
oil per day."
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
www.gulfsands.com
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