Gulfsands Moves Ahead of Schedule at Khurbet East

Gulfsands Petroleum plc has announced that construction and installation of the 10,000 bpd Early Production Facility for the Khurbet East Field has now been completed. Handover of this facility has been achieved less than five months after approval was granted for the development of the Khurbet East field.

Gulfsands, the Operator of Syria Block 26, and Dijla Petroleum Company, the jointly owned company established with Syria Petroleum Company (SPC) to act as the joint operating company under the terms of the Production Sharing Contract for Block 26, are now proceeding with pressure testing of the Early Production Facility and well tie-in operations. Initial well tie-in operations will include the KHE-4, KHE-5H and KHE-6H development wells which were completed as production wells.
Following the tie-in of these development wells, the KHE-2 and KHE-3 appraisal wells will be re-entered to be completed as production wells for tie-in to the Early Production Facility. It is expected that completion operations for the KHE-2 and KHE-3 wells will commence in mid July and be completed by early August.
Accordingly, Gulfsands is anticipating the commencement of oil production during the month of August 2008, well ahead of the schedule contemplated when development approval was granted in mid February, 2008.
"The Government of Syria and Syria Petroleum Company have worked tirelessly with Gulfsands in bringing into production this important new oil field which, after completion of the Full Field Development contemplated to commence in early 2009, should provide a significant boost to Syria's oil production by 2010," said Chairman of Gulfsands Andrew West.
"We would like to express our sincere gratitude to the Syrian government and SPC on their co-operation with our technical teams and valuable contribution to the successful completion of the Early Production Facility ahead of schedule. The fast tracking of the Early Production Facility is also testament to the significant
capabilities of the Gulfsands' technical team."

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