Khurbet East Field Production Exceeds One Million Barrels

Gulfsands has confirmed that cumulative oil production from the Khurbet East Field in Syria's Block 26 has now exceeded one million barrels.

Production of oil from the Khurbet East Field has just passed an important milestone with confirmation over the recent weekend that production from the Field has passed a cumulative one million barrels since the commencement of production in July from the Early Production Facility built in cooperation with the Syrian Petroleum Company.

The Khurbet East Field is continuing to average production of approximately 11,500 bopd from 5 wells (2 horizontal and 3 vertical producers) with only trace amounts of water. Pressure monitoring of the producing wells indicates there continues to be only minimal reservoir pressure reduction.

As a consequence of the better than expected performance of the Khurbet East Field, the Company is anticipating a re-evaluation of the Khurbet East Field reserves which will be undertaken by RPS Group Plc as of year-end 2008, with results expected in Q1 2009.