Gulfsands Drills Second Horizontal Development Well in Khurbet East

Block 26, Syria
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Gulfsands Petroleum plc has completed the drilling operations on the second horizontal development well within Syria's Khurbet East Field (KHE-6H). The KHE-6H well has been completed and suspended as the fifth oil producer for connection through the Early Production Facility (EPF), scheduled to commence operation during the third quarter of 2008.

The KHE-6H well was designed to be drilled and completed as a horizontal producer within the Cretaceous Massive Reservoir in the Khurbet East Field. The top of the reservoir was encountered at the depth predicted in the pre-drill estimate. The well was drilled through a total horizontal section of approximately 200 meters within the reservoir interval.

At this point in the life cycle of the project, it is more cost effective to forego a limited production test and move directly to well completion and subsequent tie-in to the EPF. As such, a drill-stem test was not undertaken.

With completion of operations at KHE-6H, the Company has five wells that are capable of production from the Massive Reservoir at Khurbet East. Construction and installation of the EPF is nearing completion, and the Company now expects to achieve first oil production from Khurbet East during the third quarter of 2008.


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