14th Feb 2006 07:01
Gulfsands Petroleum PLC14 February 2006 14 February 2006 Gulfsands Petroleum PLC("Gulfsands" or "the Group") Gulfsands Announces Board Changes Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,development and production company with activities in the USA, Syria and Iraq,announced today the appointment of two new non-executive directors, Mr. AndrewWest and Mr. David Cowan, to replace departing non-executive directors Mr.Malcolm Butler and Mr. Charles Stonehill. The changes to the Board reflect thechanging needs of Gulfsands as its executive management is increasingly focusedon the development of its business in the Middle East, specifically Syria. Andrew West, a British subject and resident, is an investment banker with nearlytwenty-five years experience in London and New York. During his early career heworked from 1981 to 1985 as a Vice President of Smith Barney & Co., and from1985 to 1990 as an Executive Director of Lehman Brothers Limited, specializingin mergers and acquisitions. From 1990 to 1997 Mr. West was a Director ofGuinness Mahon & Co. Limited and a Managing Director of its Corporate FinanceDivision and from 1997 to 1999 was Managing Director of Strand Partners Limited,a privately-owned investment banking firm. For the past several years Mr. Westhas worked independently and he is currently a non-executive director of severalcompanies, including Bellamy's of Bruton Place Limited, a restaurant company,CLP Envirogas Holdings Limited, a renewable energy company, First City InsuranceGroup Limited, an insurance broker, and Abacus Syndicates Limited, a Lloyd'sManaging Agency. Mr. West has had considerable previous experience advising inthe oil and gas sector, including playing a significant role in theestablishment of Sibir Energy PLC, an AIM listed oil and gas company withinterests in Western Siberia, of which he was Chairman for two years. David Cowan is a solicitor residing in Vancouver, Canada. He is a partner withLang Michener LLP, a national Canadian law firm with offices in Vancouver,Toronto and Ottawa and is a member of that firm's Venture Capital Group. DavidCowan holds an LLB from the University of British Columbia (1979) and practicesprimarily in the area of corporate and securities law. He represents numerouspublicly traded companies and has previously worked with the British Columbiaprovincial government, including the British Columbia Securities Commission,where he was involved in the drafting of securities legislation. Mr. Cowan is apast Chairman of both the Securities and Natural Resources subsections of theBritish Columbia branch of the Canadian Bar Association, and the NationalNatural Resources subsection of the Canadian Bar Association. He has alsoserved as a member of the Securities Policy Advisory Committee to the BritishColumbia Securities Commission and is a frequent lecturer for the ContinuingLegal Education Society of British Columbia. Mr. Cowan is currently a directorof Brazilian Diamonds Limited, a company listed on the Toronto Stock Exchangeand AIM, and is also a director of Alto Ventures Ltd., Tres-Or Resources Ltd.and Piper Capital Inc., all listed on the TSX Venture Exchange. He is also adirector of Gulfsands Petroleum Ltd. and Gulfsands Petroleum Syria Ltd. (whollyowned subsidiaries of Gulfsands Petroleum PLC), and has provided legal andcommercial counsel to Gulfsands since its incorporation in 1997. Mr. Cowan'sspecific Middle East region experience includes ventures in Syria, Iraq andAlgeria. Since the listing of the Company's shares on AIM last year, the Company's assetbase has grown and become increasingly focused in the Middle East, specificallyin Block 26, Syria. Since the IPO, Gulfsands has increased its working interestin Block 26 from 20% to 50% and became operator with the drilling programme dueto commence in May. The executive management of the Company believes this focuswill result in rapid and sustained growth of the Company and also believes thatthe composition and direction of the Board should be aligned with this strategy.Mr. Butler and Mr. Stonehill agreed with the executive management of theCompany that the prospects for the further, successful development of thecompany's asset base in both the Middle East and the GOM are strong. The Company plans to recruit a third non-executive director in the near term tobalance representation on the board with three executive and three non-executivedirectors. John Dorrier, CEO of Gulfsands Petroleum, said "The Company would like to thankMalcolm and Charles for their contributions to the Board and their servicethrough the early period of the Company's existence as an AIM listed company,and we welcome Andrew and David as new directors of the Company." Enquiries:Gulfsands Petroleum (Houston) 001-713-626-9564David DeCort, Chief Financial Officer College Hill (London) 020-7457-2020Ben Brewerton / Nick Elwes Seymour Pierce (London) 020-7107-8000Richard RedmayneJonathan Wright Note to Editors • Gulf of Mexico, USA The Group owns interests in 64 offshore blocks comprising approximately 216,000gross acres which includes 39 producing oil and gas fields offshore Texas andLouisiana with proved and probable recoverable reserves of approximately 30.3billion cubic feet of natural gas equivalents (BCFGE), consisting of 14.94 BCFGand 2.56 MMBO as of 30 June 2005 with a net present value of approximately $129million. Additionally, there is a further 3.4 BCFGE of possible recoverablereserves with a net present value of approximately $14 million. • Syria In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.The block covers 11,000 square kilometres and surrounds areas which currentlyproduce over 100,000 barrels of oil per day from existing fields. In January2006 the Group completed the acquisition of 1,155 kilometers of 2D seismic andanticipates drilling two wells during 2006. The first well, known as SouediehNorth is scheduled to be drilled in May of 2006 which has the potential tocontain in excess of 100 MMBO. The second well known as Tigris is scheduled tobe drilled in August of 2006 and has the potential to contain in excess of 500MMBOE. Gulfsands has identified 31 total exploitation and exploration prospectswithin Block 26 with mean resources potential exceeding 1 billion barrels ofrecoverable oil. An independent reserves report was issued in January 2006 on the Tigrisstructure. The reserves were classified as either oil or gas bearing until suchtime as the Company drills and tests the Tigris structure. The reserve reportconcluded that there are 442 BCFG of probable recoverable reserves in the Tigrisstructure. Additionally, the report classified the possible reserves as eithernatural gas or oil. The gas case reflected an additional 442 BCFG in possiblerecoverable reserves and an additional 3447 BCFG as prospective resource. Theoil case reflects 104 MMBO and 64 BCFG in possible recoverable reserves and afurther 408 MMBO and 245 BCFG as prospective resource. In summary, the naturalgas case equates to total recoverable reserves potential among probablereserves, possible reserves and prospective resource as 4330 BCFG (722 MMBOE),while the oil case equates to 512 MMBO and 308 BCFG (combined 563 MMBOE). • Iraq Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministryof Oil in Iraq for the Misan Gas Project in Southern Iraq and is currentlynegotiating the definitive contract for the project. The project will gather,process and transmit natural gas that is currently a waste by-product of oilproduction in the region and will end the environmentally damaging practice ofgas flaring. Gulfsands has completed a feasibility study and expects to conductfurther technical work and commercial discussions with the Iraq Oil Ministry. • Onshore USA Gulfsands operates onshore in the USA through its 80% owned subsidiary companyDarcy Energy LLC. At the Emily Hawes field, initial gas production commenced inthe summer of 2005. The first well in the Barb Mag oil field has been drilledand wireline logged with some 38 feet of potential net pay and production testedat 1.5 million cubic feet of natural gas and 36 barrels of condensate per day.Production from this well should commence during the first quarter of 2006.Darcy Energy has a 34.375% and 37.5% working interest in these fieldsrespectively. Further information: David Cowan, aged 51, is or has, in the past five years, been a partner ordirector of the following partnerships and companies: Current Former Lang Michener LLP Clark WilsonGulfsands Petroleum Ltd. 572443 B.C. Ltd.Gulfsands Petroleum Syria Ltd.Brazilian Diamonds Ltd.Alto Ventures Ltd.Piper Capital Inc.603498 B.C, Ltd.Xcert Software Inc.Tres-Or Resources Ltd. Mr. Cowan owns 218,750 ordinary shares in Gulfsands Petroleum PLC. Andrew Thomas West, age 48, is or has, in the past five years, been a partner ordirector of the following partnerships and companies: Current Former Abacus Syndicates Limited BCT LimitedDanish Re Syndicates Limited BCT Employee Share Trust LimitedGMA Imagine Limited Clovis Associates LimitedImagine Underwriting Limited Meridian Eventing LimitedBellamy's of Bruton Place Limited Arbutus Projects (UK) LimitedBuck's Club Limited Blackborough End Energy LimitedCLPE Holdings Limited (and subsidiaries Chelson Meadow Energy Limitedand affiliates) Mayton Wood Energy LimitedArbutus Renewables LimitedAuchencarroch Energy LimitedBeetley Energy LimitedBeighton Energy LimitedBellhouse Energy LimitedBellhouse 2 Energy LimitedBolam Energy LimitedBroom Energy LimitedCathkin Energy LimitedCilgwyn Energy LimitedCLP Developments LimitedCLP Envirogas LimitedCLP Services LimitedCLPE 1991 LimitedCLPE 1999 LimitedCLP Envirogas LimitedCLPE Holdings LimitedCLPE Projects 1 LimitedCLPE Projects 2 LimitedCLPE Projects 3 LimitedCLPE ROC-1 LimitedCLPE ROC-2 LimitedCLPE ROC-3 LimitedCLPE ROC-4 LimitedCLPE ROC 2-A LimitedCLPE ROC 3-A LimitedCLPE ROC 4-A LimitedColsterworth Energy LimitedConnon Bridge Energy LimitedCostessey Energy LimitedCotesbach Energy LimitedDeerplay Energy LimitedFeltwell Energy LimitedFuntley Energy LimitedGarlaff Energy LimitedJameson Road Energy LimitedKenwick Energy LimitedKilgarth Energy LimitedLandgas Developments LimitedLandgas Energy LimitedLandgas Services LimitedLeadenham Energy LimitedMarch Energy LimitedMountsorrel Energy LimitedQueens Park Road Energy LimitedRowley Energy LimitedRushton Energy LimitedSkelbrooke Energy LimitedSnetterton Energy LimitedStoney Hill Energy LimitedSummerston Energy LimitedTodhills Energy LimitedUnited Mines Energy LimitedWetherden Energy LimitedWhinney Hill Energy LimitedWhinney Hill 2 Energy LimitedWhisby Energy LimitedGreenwich Insurance Holdings PLCFirst City Insurance LimitedGanymede Limited Clovis Partners Limited ("CPL"), a consultancy company owned by Mr. West, wasthe subject of a Winding Up Order on 25 October 2000. The amount owing to thePetitioner was paid. The Administration was concluded three months later on 29January 2001, the Official Receiver having satisfied himself that there were nomatters requiring his further attention and that no other creditors wereinvolved. CPL was dissolved on 20 May 2002. There is no further information required to be disclosed in respect of theappointments of Mr. Cowan or Mr. West pursuant to schedule 2 rule (g) (i) to(viii) of the AIM rules for companies. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Gulfsands Petroleum