Extension of PSC in Syria
Gulfsands Petroleum PLC
16 July 2007
Gulfsands Initiates Next Phase of Exploration for Block 26, Syria
London, 16th July, 2007: Gulfsands Petroleum plc ('Gulfsands' and the
'Company') (AIM: GPX), the oil and gas production, exploration and development
company with activities in the U.S.A., Syria and Iraq is pleased to announce
that, in accordance with the terms of the Production Sharing Contract ('PSC')
with Syrian Petroleum Company in respect of Block 26 Syria, the Company and its
partner Emerald Energy have given formal notice to Syrian Petroleum Company
that, having successfully fulfilled the minimum work obligations required in the
Initial Exploration Period provided under the PSC, they will commence the first
extension period of exploration following completion of the Initial Exploration
Period which will end on 23rd August, 2007.
Syrian Petroleum Company has now been formally advised of this decision and the
Company will enter the first extension period of exploration which commences on
23 August 2007. This period is for a further three years; during which the
Company and its partner will undertake further exploration work under the terms
of the PSC which must include, at a minimum, the acquisition of 250 square
kilometers of 3D seismic and the drilling of two exploration wells.
The first extension period commences immediately upon expiry of the Initial
Exploration Period and follows the relinquishment of an area equal to 25% of the
original Contract area. The Company has identified and selected an area of
lesser exploration potential in order to satisfy this mandatory relinquishment
and considers that the relinquishment of this area will have no impact on the
Company's future exploration programme for Block 26.
Following the successful oil and gas discovery and production testing of the
KHE-1 exploration well at Khurbet East in June of this year, the Company is now
looking forward to the immediate continuation of its exploration programme in
Block 26.
Gulfsands' CEO, John Dorrier, said:
'Completion of the substantial seismic work and four well drilling campaign
undertaken over the past two years is a tremendous achievement for a company of
any size. The fact that we have already made a significant oil and gas
discovery at Khurbet East adds to the significance of our move today to extend
our PSC in Syria which will allow us to enter an exciting new phase during which
we will acquire important 3D seismic data and drill additional wells both at
Khurbet East and elsewhere as we look to build on our successes to date in
exploring Block 26.'
ABOUT GULFSANDS:
Gulf of Mexico, USA
The Company owns interests in 54 offshore blocks comprising approximately
193,000 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 2006 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 2006 of 3.1 BCFGE (0.5 MMBOE), consisting of 2.8 BCFG and 57,000
barrels of oil.
Syria
Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria. Block 26 covers 11,000 square kilometres and encompasses existing fields
which currently produce over 100,000 barrels of oil per day. These fields are
operated by third parties including the Syria Petroleum Company.
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 contracts 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.
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.
For further information including the Company's recent investor presentation,
please refer to the Company's website www.gulfsands.net or contact:
Gulfsands Petroleum (Houston) + 1-713-626-9564
John Dorrier, Chief Executive Officer
David DeCort, Chief Financial Officer
Gulfsands Petroleum (London) 020-7182-4016
Kenneth Judge, Director of Corporate Development 07733-001-002
College Hill (London) 020-7457-2020
Nick Elwes
Paddy Blewer
Teather & Greenwood (London) 020-7426-9000
Tom Hulme (Corporate Finance)
Tanya Clarke (Specialist Sales)
This information is provided by RNS
The company news service from the London Stock Exchange
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