20th Nov 2007 07:01
Gulfsands Petroleum PLC20 November 2007 Khurbet East 3 appraisal well commences in Syria London, 20th November, 2007: Gulfsands Petroleum plc ("Gulfsands", the "Group"or the "Company" - AIM: GPX), the oil and gas production, exploration anddevelopment company with activities in the U.S.A., Syria and Iraq is pleased toannounce that the Company has commenced drilling the Khurbet East 3 ("KHE-3")appraisal well within Block 26, Syria. KHE-3 Well Gulfsands, the operator and 50% working interest owner in Block 26, hascommenced drilling the KHE-3 well to further appraise the Cretaceous Massivereservoirs encountered in both the Khurbet East 1 ("KHE-1") discovery well andthe Khurbet East 2 ("KHE-2") appraisal well. The drilling of this well will assist in the planning for early development andproduction of the Massive reservoir in Khurbet East scheduled for the secondhalf of 2008. To date, there has been no clear oil-water contact seen in eitherwell and no formation water has been recovered. The total drilling depth of the KHE-3 well is expected to be approximately 2,050metres. The well will require approximately 45 days to drill and evaluate at agross cost, including rig mobilisation and demobilisation, of approximately $2.4million ($1.2 million net to Gulfsands). For further information please view the presentation on the Khurbet East Fieldlocated on the Company's website at www.gulfsands.net. ABOUT GULFSANDS: Gulf of Mexico, USA The Company owns interests in 54 offshore blocks comprising approximately193,000 gross acres which includes numerous producing oil and gas fieldsoffshore Texas and Louisiana with proved and probable recoverable reserves netto Gulfsands at 31 December 2006 of 41.5 BCFGE (6.9 MMBOE), consisting of 27.3BCFG 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 MagField) with proved and probable recoverable reserves net to Gulfsands at 31December 2006 of 3.1 BCFGE (0.5 MMBOE), consisting of 2.8 BCFG and 57,000barrels of oil. Syria Gulfsands owns a 50% working interest and is operator of Block 26 in North EastSyria. Block 26 covers approximately 8,250 square kilometres and encompassesexisting fields which currently produce over 100,000 barrels of oil per day.These fields are operated by third parties including the Syria PetroleumCompany. In the first half of 2007 Gulfsands announced an oil and gas discoveryon Block 26 called Khurbet East. This discovery is currently under appraisal.The Company initiated the first extension period of exploration on Block 26 fora further period of three years commencing on 23 August 2007. The Company hasalso formed a strategic partnership with Cham Holding for acquiring oil and gasprojects in Syria and Iraq. Iraq Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministryof Oil in Iraq for the Maysan Gas Project in Southern Iraq and followingcompletion of a feasibility study on the project is negotiating details ofdefinitive contract for this regionally important development. The project willgather process and transmit natural gas that is currently a waste by-product ofoil production and as a result of the present practice of gas flaring,contributes to significant environmental damage in the region. Certain statements included herein constitute "forward-looking statements"within the meaning of applicable securities legislation. These forward-lookingstatements are based on certain assumptions made by Gulfsands and as such arenot a guarantee of future performance. Actual results could differ materiallyfrom those expressed or implied in such forward-looking statements due tofactors such as general economic and market conditions, increased costs ofproduction or a decline in oil and gas prices. Gulfsands is under no obligationto update or revise any forward-looking statements, whether as a result of newinformation, future events or otherwise, except as required by applicable laws. For further information, please refer to the Company's website www.gulfsands.netor contact: Gulfsands Petroleum (Houston) + 1-713-626-9564 John Dorrier, Chief Executive OfficerDavid DeCort, Chief Financial Officer Gulfsands Petroleum (London) 020-7182-4016Kenneth Judge, Director of Corporate Development 07733-001-002 College Hill (London) 020-7457-2020 Nick ElwesSimon Whitehead Landsbanki Securities (UK) Limited (London) 020-7426-9000 Jeff Keating / Tom Hulme (Corporate Finance) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Gulfsands Petroleum