Gas Discovery

Gulfsands Petroleum PLC
14 December 2005


14 December 2005


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

Gulfsands Announces Offshore Discovery in the Gulf of Mexico

Gulfsands Announces Near Term Exploration Program in the Gulf of Mexico


Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
is pleased to announce a new discovery in the Gulf of Mexico.

Exploration Discovery and Drilling Update for the Gulf of Mexico

Gulfsands participated at a 12.5% working interest in an exploration well on
Eugene Island 58.  This well has been drilled to a total measured depth of
11,655 feet and the wireline logs of the well indicated the presence of
hydrocarbons within several zones with approximately 170 feet of potential net
pay.  This well tested natural gas at a rate of 8.2 million cubic feet per day
and 134 barrels of condensate per day.  Production casing has been set and
completion operations have commenced and the well is scheduled to commence first
production in late March of 2006.  The net cost to Gulfsands for the drilling,
completion and facility costs to hook up this well is estimated to be
approximately $986,000.

Upon completion of operations on the Eugene Island 58 discovery well, Gulfsands
will participate in a three well exploration drilling campaign in the immediate
area, where Gulfsands will be participating with a 25% working interest in each
of these wells.

Gulfsands also participated recently at a 13.15% working interest in a sidetrack
well on Ship Shoal Block 177 at a net cost of approximately $465,000.  This well
had approximately 19 feet of net pay and was put on production last week at a
gross daily rate of approximately 5 million cubic feet of natural gas and 31
barrels of oil.

The Company also participated at a 5.26% working interest in an exploration well
at High Island 528 that was unsuccessful at a net cost to Gulfsands of
approximately $188,000.

Since Gulfsands listed on AIM in April 2005, the Company has participated in the
drilling of six offshore Gulf of Mexico exploration wells and four of those six
have been discoveries.


John Dorrier, CEO of Gulfsands Petroleum, said:

'We are pleased with the overall results of the 2005 exploration programs in the
Gulf.  These wells put the Company in a good position to move production back to
pre-storm levels and above, as offshore pipeline infrastructure owned and
operated by third-parties is brought back into service.'



Enquiries:
Gulfsands Petroleum (Houston)                                001-713-626-9564
David DeCort, Chief Financial Officer

College Hill (London)                                        020-7457-2020
Ben Brewerton / Nick Elwes

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


Note to Editors
     
•    Gulf of Mexico, USA
     The Group owns interests in 64 offshore blocks comprising approximately 
     216,000 gross acres which includes 39 producing oil and gas fields offshore 
     Texas and Louisiana with proved and probable reserves of approximately 30.3 
     billion cubic feet of natural gas equivalents, consisting of 14.94 billion 
     cubic feet of natural gas and 2.56 million barrels of oil as of 30 June 
     2005 with a net present value of approximately $129 million.

•    Syria
     In Syria, Gulfsands owns a 50% working interest in Block 26 and is the 
     operator. The block covers 11,000 square kilometres and surrounds areas 
     which currently produce over 100,000 barrels of oil per day from existing 
     fields.  The Group commenced the acquisition of an extensive 2D seismic 
     programme during August 2005 and anticipates the drilling of the first well 
     during the first half of 2006. Gulfsands has identified 31 exploitation and 
     exploration prospects and leads with mean resources potential exceeding 1 
     billion barrels of recoverable oil.

•    Iraq
     Gulfsands signed a Memorandum of Understanding in January 2005 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.
     
•    Onshore USA
     Gulfsands operates onshore in the USA through its 80% owned subsidiary 
     company Darcy Energy LLC.  At the Emily Hawes field, initial gas production 
     commenced in the summer of 2005.  The first well in the Barb Mag oil field 
     has been drilled and wireline logged with some 38 feet of potential net pay 
     and production tested at 1.5 million cubic feet of natural gas and 36 
     barrels of condensate per day. Production from this well should commence 
     during the first quarter of 2006. Darcy Energy has a 34.375% and 37.5% 
     working interest in these fields respectively.


                      This information is provided by RNS
            The company news service from the London Stock Exchange