Analyst Technical Presentation Initial Yousefie...
Immediate Release 4th March 2009
Gulfsands Petroleum plc
Analyst Technical Presentation
Initial Yousefieh Discovery Oil in Place Estimate
London, 4 March 2009: Gulfsands Petroleum plc ('Gulfsands' or the
'Company' - AIM: GPX), the oil and gas production, exploration and
development company with activities in Syria, Iraq, and the U.S.A.,
will host a meeting for analysts today, at the offices of Buchanan
Communications, 45 Moorfields, London EC2Y 9AE at 11.30am.
Senior management will give a presentation on various technical
aspects of the Company's business and assets. A copy of the
presentation is available on the Company's website www.gulfsands.com.
For the purposes of full disclosure, the presentation will include
new information, which has not been announced previously. The new
information is as follows:
A Operating guidance:
Year to 31 December 2008
* Syria (50% joint venture partner) - Gross daily average
production of 8,470 bopd over 163 days in 2008 (July to end
December 2008). Average sale price during the period at
US$61/bbl. Further details of Syrian oil pricing are disclosed on
page 32 of the presentation.
* USA - working interest production 1,330 boepd during 2008,
with average sales price of US$108/bbl and US$9.7/mcf gas.
Forecast for current year to 31 December 2009
* Syria - Year end gross production of approximately 16,000
bopd, resulting in full year average gross production of between
12,500 and 13,000 bopd, with development costs budgeted at US$37m
gross, and exploration capital expenditure of US$22m gross. The
Syrian operations are net cash flow neutral at US$35/bbl Brent,
inclusive of all capital, operating and head office costs.
* USA - working interest production of 2,000 boepd with capex
of US$6m. The USA assets are net cash flow neutral at $47/bbl WTI,
and US$5.5/mcf Henry Hub gas.
B Operational update in Syria
Yousefieh STOIIP
Following the completion of drilling and wire line logging of the
Yousefieh - 2 well in Syria announced on 24 February 2009 and
analyses of these data by RPS, the Yousefieh oil field has
preliminary estimated oil in place of 27.2 - 48.5 - 73.9 MMbbls (P90
-P50 - P10).
Spudding of KHE-8
Gulfsands will commence drilling the KHE-8 appraisal well once on
site inspection of the drilling rig is completed, likely within the
next 24 hours. The KHE-8 well will take approximately 45 days to
drill and is designed to provide geologic information on the southern
limits of the Khurbet East Field, establish the oil-water contact and
to be available to serve as a disposal well for the water that is
expected to be eventually produced in conjunction with oil production
from the Khurbet East Field.
3D Seismic Programme
A total of 850 km2 of 3D seismic data will now be acquired in the
2009 acquisition programme.
Otherwise, no new operational or financial information will be
disclosed during the presentation.
For more information please contact:
Gulfsands Petroleum (London) +44 (0)20 7434 6060
Ric Malcolm, Chief Executive Officer
Kenneth Judge, Director of Corporate Development +44 (0)7733 001 002
& Communications
Buchanan Communications Limited (London) +44 (0)20-7466-5000
Bobby Morse
Ben Romney
RBC Capital Markets (London) +44 (0)20-7653 4804
Sarah Wharry
ABOUT GULFSANDS:
Gulfsands is listed on AIM.
Syria
Gulfsands owns a 50% working interest and is operator of Block 26 in
North East Syria. The Khurbet East oil field was discovered
following the completion of drilling of the KHE-1 well in June 2007
and commenced commercial production within 13 months of the
discovery. This field is currently producing more than 10,000 barrels
of oil per day through the Khurbet East Early Production Facility
(EPF). Block 26 covers approximately 8,250 square kilometres and
encompasses existing fields which currently produce over 100,000
barrels of oil per day. These fields are operated mainly by the Syria
Petroleum Company. On 23 August 2007, the Company initiated the
first extension period of exploration on Block 26 for a further
period of three years.
Iraq
Gulfsands signed a Memorandum of Understanding in January 2005 with
the Ministry of Oil in Iraq for the Maysan Gas Project in Southern
Iraq and following completion of a feasibility study on the project
is negotiating details of definitive contract for this regionally
important development. The project will gather, process and transmit
natural gas that is currently a waste by-product of oil production
and as a result of the present practice of gas flaring, contributes
to significant environmental damage in the region.
Gulf of Mexico, USA
The Company owns interests in 48 offshore blocks comprising
approximately 168,000 gross acres which includes numerous producing
oil and gas fields offshore Texas and Louisiana with proved and
probable recoverable reserves net to Gulfsands at 31 December 2007 of
41.5 BCFGE (6.9 MMBOE), consisting of 27.3 BCFG and 2.36 MMBO.
Onshore USA
Gulfsands owns interests in two oil and gas fields onshore Texas, USA
(98.5% working interest in Emily Hawes Field and 37.5% working
interest in Barb Mag Field) with proved and probable recoverable
reserves net to Gulfsands at 31 December 2007 of 3.1 BCFGE (0.5
MMBOE), consisting of 2.8 BCFG and 57,000 barrels of oil.
Certain statements included herein constitute "forward-looking
statements" within the meaning of applicable securities legislation.
These forward-looking statements are based on certain assumptions
made by Gulfsands and as such are not a guarantee of future
performance. Actual results could differ materially from those
expressed or implied in such forward-looking statements due to
factors such as general economic and market conditions, increased
costs of production or a decline in oil and gas prices. Gulfsands is
under no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by applicable laws.
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