16th Jul 2007 07:01
Gulfsands Petroleum PLC16 July 2007 Gulfsands Initiates Next Phase of Exploration for Block 26, Syria London, 16th July, 2007: Gulfsands Petroleum plc ("Gulfsands" and the "Company") (AIM: GPX), the oil and gas production, exploration and developmentcompany with activities in the U.S.A., Syria and Iraq is pleased to announcethat, in accordance with the terms of the Production Sharing Contract ("PSC")with Syrian Petroleum Company in respect of Block 26 Syria, the Company and itspartner Emerald Energy have given formal notice to Syrian Petroleum Companythat, having successfully fulfilled the minimum work obligations required in theInitial Exploration Period provided under the PSC, they will commence the firstextension period of exploration following completion of the Initial ExplorationPeriod which will end on 23rd August, 2007. Syrian Petroleum Company has now been formally advised of this decision and theCompany will enter the first extension period of exploration which commences on23 August 2007. This period is for a further three years; during which theCompany and its partner will undertake further exploration work under the termsof the PSC which must include, at a minimum, the acquisition of 250 squarekilometers of 3D seismic and the drilling of two exploration wells. The first extension period commences immediately upon expiry of the InitialExploration Period and follows the relinquishment of an area equal to 25% of theoriginal Contract area. The Company has identified and selected an area oflesser exploration potential in order to satisfy this mandatory relinquishmentand considers that the relinquishment of this area will have no impact on theCompany's future exploration programme for Block 26. Following the successful oil and gas discovery and production testing of theKHE-1 exploration well at Khurbet East in June of this year, the Company is nowlooking forward to the immediate continuation of its exploration programme inBlock 26. Gulfsands' CEO, John Dorrier, said: "Completion of the substantial seismic work and four well drilling campaignundertaken over the past two years is a tremendous achievement for a company ofany size. The fact that we have already made a significant oil and gasdiscovery at Khurbet East adds to the significance of our move today to extendour PSC in Syria which will allow us to enter an exciting new phase during whichwe will acquire important 3D seismic data and drill additional wells both atKhurbet East and elsewhere as we look to build on our successes to date inexploring Block 26." 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 11,000 square kilometres and encompasses existing fieldswhich currently produce over 100,000 barrels of oil per day. These fields areoperated by third parties including the Syria Petroleum Company. 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 contracts 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 including the Company's recent investor presentation,please refer to the Company's website www.gulfsands.net or contact: Gulfsands Petroleum (Houston) + 1-713-626-9564John 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) 020-7457-2020Nick ElwesPaddy Blewer Teather & Greenwood (London) 020-7426-9000Tom Hulme (Corporate Finance)Tanya Clarke (Specialist Sales) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Gulfsands Petroleum