Gulfsands Spuds Khurbet East 3 Appraisal Well in Syria

Gulfsands Petroleum has commenced drilling the Khurbet East 3 (KHE-3) appraisal well within Block 26, Syria.

KHE-3 Well

Gulfsands, the operator and 50% working interest owner in Block 26, has commenced drilling the KHE-3 well to further appraise the Cretaceous Massive reservoirs encountered in both the Khurbet East 1 (KHE-1) discovery well and the Khurbet East 2 (KHE-2) appraisal well.

The drilling of this well will assist in the planning for early development and production of the Massive reservoir in Khurbet East scheduled for the second half of 2008. To date, there has been no clear oil-water contact seen in either well and no formation water has been recovered.

The total drilling depth of the KHE-3 well is expected to be approximately 2,050 meters. The well will require approximately 45 days to drill and evaluate at a gross cost, including rig mobilization and demobilization, of approximately $2.4 million ($1.2 million net to Gulfsands).