Gulfsands to Tie Completed Well into Khurbet East EPF

Block 26, Syria
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Gulfsands announced that drilling operations on the KHE-10 horizontal well ("KHE-10") have been successfully completed and the well will be tied into the Khurbet East Early Production Facility ("EPF"). Production from this well is expected to commence in July.

The KHE-10 well was spudded on May 21 at a surface location approximately one kilometre south of KHE-1, the original Khurbet East discovery well. KHE-10 is the second of three development wells planned to support the expansion of the Khurbet East EPF. The well was drilled to a total measured depth of 2329 meters or 1926 meters true vertical depth (TVD) and encountered the top of the oil bearing Cretaceous Massive reservoir at 1,927 meters consistent with the pre-drill prediction. A horizontal section of approximately 260 meters of Cretaceous Massive Formation was penetrated within the uppermost part of the reservoir with properties consistent with reservoirs evaluated in the other high performance wells in the central portion of the Khurbet East Field.

Tie-in operations will now commence on KHE-10 and the previously drilled KHE-9 well with production from these wells expected to begin during July coincident with the completion of the expansion of the Khurbet East EPF. As the KHE-10 well will be tied into the production facility immediately, a drill-stem test of the well was not undertaken.

The drilling rig will now move on to drill KHE-11, the third well in the current three well development drilling program.

Ric Malcolm, Gulfsands CEO, said, "The successful and timely drilling of the first two development wells within high quality oil bearing reservoir keeps plans on track for oil production through the Early Production Facility to be increased from the current rate of approximately 10,700 barrels of oil per day and achieve the year end target rate of 16,000 barrels of oil per day."



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