Operations Update
(Thomson Reuters ONE) - Immediate Release 22 October 2009 GULFSANDS PETROLEUM PLCOperations Update:Yousefieh 3 Appraisal Well Intersects 49 Metre Net Oil Column andFlows OilKhurbet East 12 Delineation Well CompletedKhurbet East Gross Oil Production Reaches 5 million BarrelsLondon, 22nd October 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 update on theCompany's operations at Block 26, Syria where Gulfsands holds a 50%interest and acts as operator.Yousefieh 3 Appraisal Well Intersects 49 Metre Net Oil Column andFlows OilThe Yousefieh 3 vertical appraisal well, located approximately 500metres to the south-east of the Yousefieh 1 discovery well,encountered the top of the Cretaceous Massive Formation at a measureddepth ("MD") of 1946 metres (1530 metres true vertical depth subsurface ("TVD SS")) and was drilled to a total depth of 2056 metresMD (1640 metres TVD SS).Preliminary interpretation of drilling data and wireline logs hasidentified a gross oil column within the well-bore of 60 metres witha net pay of 49 metres having an average porosity of 19.5% and anoil-water contact at 1590 metres TVD SS, consistent with that seen atYousefieh 1 and 2.An open-hole drill-stem test was conducted over the interval1946-1985 metres MD. Yousefieh 3 flowed naturally at an average rateof 226 stock tank barrels per day of 24-25 degree API oil for 9 hourson a 32/64" choke setting. No formation water was produced duringthis flow period. Analysis of this well test indicates that acomponent of this reduced oil flow rate when compared to Yousefieh 1is the result of formation damage sustained during drilling andcoring operations. The reservoir section will be subjected to anacid stimulation at a later date with the objective of improving flowperformance.The well will now be completed as a potential future production wellwith the running of a 7" liner over the reservoir section.Khurbet East 13 Development WellFollowing the completion of operations at Yousefieh 3, the rig willmove to the Khurbet East field to drill Khurbet East 13 ("KHE-13"), avertical production well to be located approximately 600 metressouthwest of the Khurbet East 9 development well.Khurbet East 12 Drilling and Testing Operations CompletedKhurbet East 12 ("KHE-12"), located 3.2 kilometres south of theKhurbet East 8 well, the previous southern most well in the KhurbetEast field, was drilled as a delineation well to determine thesouthern extent of the field and identify the field oil-watercontact.Extended flow testing operations have recently been completed onKHE-12. Oil was confirmed to be present within a 6 metre section ofcore recovered from the top of the reservoir interval but the welldid not flow oil to surface in the presence of artificial lift andacid stimulation. Formation water only was produced during testing ofa net reservoir interval of 10 metres and initial interpretation ofthis flow test result is that the oil observed in KHE-12 core isresidual and lies beneath the Khurbet East field oil-water contact.The field oil-water contact is now assessed as being located at adepth shallower than the top of the Cretaceous Massive reservoirencountered in KHE-12 at 1592 metres TVD SS, but deeper than 1570metres TVD SS, the lowest level of oil production from Khurbet Eastas recorded in well KHE-8. The result of this well will beincorporated into an assessment of field reserves which is scheduledto be completed during the first quarter of 2010.KHE-12 is now expected to be used as a future water disposal well.Khurbet East Field Oil ProductionCumulative gross oil production from the Khurbet East field hasreached 5 million barrels with minimal water production and littlepressure depletion being observed to date. Average daily gross oilproduction during the month of October is in excess of 17,000 barrelsper day.Ric Malcolm, Gulfsands CEO, said"The successful outcome of the Yousefieh 3 appraisal well will nowenable the Company to proceed shortly with an application forcommercial development of the Yousefieh field. We continue to bevery pleased with the excellent production performance of the KhurbetEast field and on reaching another important milestone of 5 millionbarrels gross production. Additionally, the results from the KhurbetEast 12 well have enabled us to identify the southern extent of thefield and to further narrow down the depth of the field oil-watercontact."This release has been approved by Richard Malcolm, Chief Executive ofGulfsands Petroleum Plc who has a Bachelor of Science degree inGeology with 29 years of experience in petroleum exploration andmanagement. Mr. Malcolm has consented to the inclusion of thetechnical information in this release in the form and context inwhich it appears.For more information please contact:Gulfsands Petroleum (London) +44 (0)20 7434 6060Richard Malcolm, Chief Executive OfficerKenneth Judge, Director of Corporate Development +44 (0)7733 001 002& CommunicationsBuchanan Communications Limited (London) +44 (0)20 7466 5000Bobby MorseBen RomneyRBC Capital Markets (London) +44 (0)20 7653 4667Sarah WharryABOUT GULFSANDS:Gulfsands is listed on the AIM market of the London Stock Exchange.SyriaGulfsands owns a 50% working interest and is operator of Block 26 inNorth East Syria. The Khurbet East oil field was discovered in June2007 and commenced commercial production within 13 months of thediscovery. This field is producing at an average gross productionrate of approximately 17,000 barrels of oil per day through an earlyproduction facility. Block 26 covers approximately 8,250 squarekilometres and encompasses existing fields which currently produceover 100,000 barrels of oil per day, and are operated mainly by theSyrian Petroleum Company. The current exploration license expires inAugust 2010 and is extendable for a further two years. Gulfsands'working interest 2P reserves in Syria at 31 December 2008 were 35.2mmbbls.IraqGulfsands signed a Memorandum of Understanding in January 2005 withthe Ministry of Oil in Iraq for the Maysan Gas Project in SouthernIraq, following completion of a feasibility study on the project, andis negotiating details of a definitive contract for this regionallyimportant development. The project will gather, process and transmitnatural gas that is currently a waste by-product of oil productionand as a result of the present practice of gas flaring, contributesto significant environmental damage in the region. The Company isactively engaged in discussions with respect to financing andpotential equity partners. Gulfsands has no reserves in Iraq.Gulf of Mexico, USAThe Company owns interests in 44 blocks comprising approximately138,000 gross acres offshore Texas and Louisiana, which include 30producing oil and gas fields with proved and probable workinginterest reserves at 31 December 2008 of 5.1 mmboe.Certain statements included herein constitute "forward-lookingstatements" within the meaning of applicable securities legislation.These forward-looking statements are based on certain assumptionsmade by Gulfsands and as such are not a guarantee of futureperformance. Actual results could differ materially from thoseexpressed or implied in such forward-looking statements due tofactors such as general economic and market conditions, increasedcosts of production or a decline in oil and gas prices. Gulfsands isunder no obligation to update or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise, except as required by applicable laws.More information can be found on the Company's websitewww.gulfsands.com---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 22.10.2009 - 08:01 Uhr
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