Gulfsands Expands in Khurbet East with Second Horizontal Well

Gulfsands Petroleum plc announced that the Company has commenced the drilling of the second horizontal development well within the Khurbet East Field (KHE-6H). The KHE-6H well will be completed and suspended as an oil producer for connection through the Early Production Facility (EPF), scheduled to commence operation by the fourth quarter of 2008.
The KHE-6H well is designed to be drilled and completed as a horizontal producer within the Cretaceous Massive Reservoir (Massive Reservoir) in the Khurbet East Field. The Company estimates that approximately 50 days are required for the drilling, evaluation and completion of the KHE-6H well.
Upon completion of operations on KHE-6H, the Company will have two horizontal and three vertical producing wells available for oil production through the Khurbet East EPF. These wells will provide valuable production information that will be used for planning and optimizing the design and construction of the Khurbet East permanent production facility.



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