Khurbet East Development Update

Development drilling commences at Khurbet East Field Development Area for Khurbet East Field approved Exploration 3D seismic programme completed London, 13th February 2008: 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 the Company has commenced the drilling of its first development well within the Khurbet East Field ("KHE-4") following the recent approval by the Syrian Government for the development of the Khurbet East Field. The Company is also now able to confirm that a 100 km2 area of Block 26 has now been converted to the Development Area of Khurbet East Field ("Development Area"). Additionally, the Company has successfully completed the 240 km² "exploration" 3D seismic acquisition programme located to the south of Khurbet East, and has commenced seismic processing and interpretation of the data acquired in the recently completed Khurbet East 3D seismic survey. KHE-4 Well The KHE-4 well is a development well within the Cretaceous Massive Reservoir near the KHE-1 location. Following the two successful appraisal wells (KHE-2 and KHE-3), the KHE-4 well is the first well on the Khurbet East Field that is planned and designed as a development well. The KHE-4 well is located within 150 metres of the KHE-1 discovery well surface location, near the currently mapped crest of the structure. The Company plans to use the KHE-1 well for oil and gas production from the deeper Kurrachine Dolomite and Butmah Formations, with the KHE-4 well concentrating on production from the Cretaceous Massive Formation. The total drilling depth of the KHE-4 well is expected to be approximately 1,950 metres and will require approximately 30 days to drill and evaluate, at a gross cost including rig mobilization and demobilization costs of approximately $1.8 million, or $900,000 net to Gulfsands. Development Area Approval Following the recent receipt of approval for the commercial development of the Khurbet East Field (see announcement of 5 February 2008), the Syrian Ministry of Petroleum and Mineral Resources has granted approval of the Company's application for establishment of the Development Area. The 100 km2 Development Area will be operated in partnership with the Syrian Petroleum Company ("SPC") through a joint operating company. 3D Seismic As announced on 7 January 2008 the Company has completed a 150 km2 3D seismic acquisition programme over the Khurbet East Field. The Company has now commenced seismic processing and interpretation of this newly acquired 3D seismic, which will be used in assisting in the selection of additional development well locations in the Khurbet East Field during 2008 and 2009, as well as identifying any "near-field' exploration locations adjacent to the Field. The Company has also completed the acquisition of a 240 km² exploration 3D seismic programme located to the south of Khurbet East. These data are expected to assist in maturing exploration leads within the greater Khurbet East area into prospects suitable for drilling. Seismic processing has commenced with interpretation to begin upon delivery of the final data. Gulfsands' CEO, John Dorrier, said: "The commencement of the development drilling programme at Khurbet East is a further significant milestone for the Company as we swiftly move toward first oil production from the Field. We also expect the 3D seismic survey south of Khurbet East to yield high-quality exploration drilling prospects, and we anticipate that one or more of these prospects should be drill-ready during 2008." This release has been approved by Jason Oden, Gulfsands Exploration Manager, who has a Bachelor of Science degree in Geophysics with 23 years of experience in petroleum exploration and management and is registered as a Professional Geophysicist. Mr. Oden has consented to the inclusion of the technical information in this release in the form and context in which it appears. ABOUT GULFSANDS: Syria 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 mainly by 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 development with first production targeted for the fourth quarter of 2008. On 23 August 2007, the Company initiated the first extension period of exploration on Block 26 for a further period of three years. The Company has also formed a strategic partnership with Cham Holding for acquiring oil and gas projects in Syria and Iraq. 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. 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. Onshore USA 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. 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 or contact: Gulfsands Petroleum (Houston) + 1-713-626-9564 John Dorrier, Chief Executive Officer David DeCort, Chief Financial Officer Gulfsands Petroleum (London) +44 (0)20-7182-4016 Kenneth Judge, Director of Corporate Development +44 (0)7733-001-002 Gulfsands Petroleum (Syria) +963-9-8888-7788 Mahdi Sajjad, President Buchanan Communications Limited (London) +44 (0)20-7466-5000 Bobby Morse Nick Melson Landsbanki Securities (UK) Limited (London) +44 (0)20-7426-9000 Jeff Keating Tom Hulme ---END OF MESSAGE---