31st May 2005 07:02
Gulfsands Petroleum PLC31 May 2005 31 May 2005 Gulfsands Petroleum PLC("Gulfsands" or "the Company") Gulfsands closes on acquisition of Devon Energy's 80% interest in Syria Block 26 Gulfsands closes on farm out of 50% interest to SoyuzNefteGas in Syria Block 26 Gulfsands Petroleum (symbol GPX), the AIM listed oil and gas exploration,development and production company with activities in the USA, Syria and Iraqannounces that it has successfully closed on the acquisition of Devon Syria,Ltd. The sole asset of Devon Syria, Ltd. is an 80% working interest in theProduction Sharing Contract for Block 26 in Syria, in which Gulfsands previouslyowned only a 20% working interest. The deal was first announced on 10 May 2005. Gulfsands also has closed its farm out with SoyuzNefteGas, a Russian oil and gascompany, whereby Gulfsands has assigned to SoyuzNefteGas a 50% working interestin Block 26. The new Block 26 ownership structure has Gulfsands as operatorwith a 50% working interest and SoyuzNefteGas with the remaining 50% workinginterest. The new Gulfsands-operated venture will proceed with the work program in Block26 which consists of seismic acquisition and drilling of 4 exploration wellsduring the next two years. During the balance of 2005, Gulfsands expects toacquire a minimum of 500 kilometers of new 2D seismic in Block 26 and commenceplanning for the first exploration well to be drilled late in 2005 or early2006. Gulfsands' CEO, John Dorrier, said: "We're delighted to have closed the deal so quickly. We have alreadyidentified 27 exploitation and exploration prospects and leads with meanresources potential of 1 billion barrels of recoverable oil in the block. Weplan to move quickly to execute the work program in the Block during theremainder of 2005 and should be in a position to drill our first explorationwell late this year or early next year." Enquiries: Gulfsands Petroleum (Houston) 713-626-9564 David DeCort, Chief Financial Officer College Hill (London) 020-7457-2020 Ben Brewerton / Jim Joseph Seymour Pierce (London) 020-7107-8000 Richard Redmayne Jonathan Wright Note to Editors • Gulf of Mexico, USA The Company has a 52.6% interest in Northstar Gulfsands, which owns interests in39 producing oil and gas fields offshore Texas and Louisiana and operates 8 ofthose fields. Northstar Gulfsands has proved and probable reserves of 4.7 mmbblsof oil and some 29.2 bcf of gas as of November 1, 2004. • Syria In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.The block covers 11,000 sq kms and surrounds areas which currently produce over100,000 bopd from existing fields. The Company is planning the acquisition ofan extensive 2D seismic programme and the drilling of the first well during2005. Gulfsands has identified 27 exploitation and exploration prospects andleads with mean resources potential of 1 billion barrels of recoverable oil. • Iraq Gulfsands has recently signed a Memorandum of Understanding with the Ministry ofOil in Iraq for the Misan Gas Project in Southern Iraq. The project willgather, process and transmit natural gas that is currently a waste by-product ofoil production in the region and will end the environmentally damaging practiceof gas flaring. Gulfsands has completed a feasibility study and expects toconduct further technical work and commercial discussions with the Iraq OilMinistry in the first half of 2005. • Onshore USA At the Emily Hawes field, which has previously produced approximately 1.7 bcf ofnatural gas before being shut-in, gas production is expected to start during thesummer of 2005. The first well in the Barb Mag oil field is expected to bedrilled in the third quarter of 2005. Darcy Energy has a 25% and 37.5% workinginterest in these fields respectively. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Gulfsands Petroleum