Acquisition of Interest

Gulfsands Petroleum PLC
08 June 2005


8 June 2005



Gulfsands Petroleum PLC
('Gulfsands' or 'the Company')


Gulfsands increases Misan Gas Project, Iraq interest to 100%


Gulfsands Petroleum (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
announces that following the expiry of the initial twelve month period of a
joint venture with Ronexim (a private Russian company), in the Misan Gas
Project, the Company has acquired Ronexim's 15% interest and now holds 100% of
the project.


On January 5, 2005 Gulfsands Petroleum signed a Memorandum of Understanding with
the Ministry of Oil in Baghdad, Iraq (the 'Oil Ministry') for the Misan Gas
Project located in southern Iraq.  The Project will gather, process and transmit
natural gas that is currently a waste by-product of oil production in southern
Iraq.  Currently, since there is no infrastructure to gather and process
associated-gas in these fields, the gas is being burned at the sites of the oil
fields.  This Project will eliminate the environmentally damaging practice of
gas-flaring in a number of large fields in southern Iraq, and produce a valuable
resource of clean natural gas that can be used to generate much needed
electricity for Iraqis.


Gulfsands has completed a Feasibility Study in cooperation with the Oil
Ministry; the plan is to build the project in two phases.  The first phase is
expected to take approximately three years to complete and the second phase, a
further two years.  This Project involves the engineering, design, procurement,
construction and operation of an associated natural gas gathering system, a
Natural Gas Liquids ('NGL') plant, and product transmission pipelines.  The
Project is expected to produce approximately 46,600 barrels of NGL per day and
338 million cubic feet of dry sweet natural gas per day.



As well as the benefit to the Iraqi economy and environment, the Project is also
expected to employ many local Iraqis.  Transfer of technology and training are
also key elements of the plan.  The Project is believed to be the first large
infrastructure project undertaken by private international investment in Iraq
since the end of the conflict in May 2003.


Gulfsands' CEO, John Dorrier, said:


'The Misan Gas Project is the first step in Gulfsands' plan to grow its
operations in Iraq in conjunction with the country's economic recovery.  The
Project is designed to provide clean natural gas to displace fuel oil currently
burned to generate electricity.  The Project also will provide employment and
training opportunities for Iraqis both during its construction and its ongoing
operating phase.  This Project and others like it will play a key role in
expanding Iraqi oil production in the future'.



Enquiries:


Gulfsands Petroleum (Houston)                         713-626-9564
David DeCort, Chief Financial Officer

College Hill (London)                                 020-7457-2020
Ben Brewerton / Jim Joseph

Seymour Pierce (London)                               020-7107-8000
Richard Redmayne
Jonathan Wright



Note to Editors



•   Gulf of Mexico, USA

The Company has a 52.6% interest in Northstar Gulfsands, which owns interests in
39 producing oil and gas fields offshore Texas and Louisiana and operates 8 of
those fields. Northstar Gulfsands has proved and probable reserves of 4.7 mmbbls
of oil and some 29.2 bcf of gas as of November 1, 2004.



•   Syria

In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.
The block covers 11,000 sq kms and surrounds areas which currently produce over
100,000 bopd from existing fields.  The Company is planning the acquisition of
an extensive 2D seismic programme and the drilling of the first well during
2005. Gulfsands has identified 27 exploitation and exploration prospects and
leads with mean resources potential of 1 billion barrels of recoverable oil.



•   Iraq

Gulfsands has recently signed a Memorandum of Understanding with the Ministry of
Oil in Iraq for the Misan Gas Project in Southern Iraq and is currently
negotiating the definitive contract for the project.  The project will gather,
process and transmit natural gas that is currently a waste by-product of oil
production in the region and will end the environmentally damaging practice of
gas flaring. Gulfsands has completed a feasibility study and expects to conduct
further technical work and commercial discussions with the Iraq Oil Ministry in
the first half of 2005.



•   Onshore USA

At the Emily Hawes field, which has previously produced approximately 1.7 bcf of
natural gas before being shut-in, gas production is expected to start during the
summer of 2005.  The first well in the Barb Mag oil field is expected to be
drilled in the third quarter of 2005.  Darcy Energy has a 25% and 37.5% working
interest in these fields respectively.








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