Reserve Update

Gulfsands Petroleum PLC
22 August 2005



22 August 2005


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


Gulfsands announces reserves update for the Gulf of Mexico

O      18% increase in NPV of proved and probable reserves

O      115% replacement of produced reserves


Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
announces that Netherland, Sewell & Associates, Inc., the Group's independent
oil and gas engineering reserves firm, has performed an updated reserves study
as of 1 July 2005 for Northstar Gulfsands LLC, a subsidiary company owned 52.6%
by Gulfsands.



As of 1 July 2005 the proved and probable reserves for Northstar Gulfsands LLC
have been valued at a net present value discounted at 10% of $248.1 million, net
of abandonment, as compared to $210.6 million at 1 November 2004.  Since 1 July
2005, oil and gas prices have increased significantly which would further
increase the net present value of these reserves if the report was issued at
today's date. Furthermore, the pricing used in the 1 July 2005 reserve report
also reflects existing price hedges that will be expiring from November 2005
through May 2007.



The reserve report reflects proved and probable reserves of 58.1 billion cubic
feet of natural gas equivalents at 1 July 2005, consisting of 28.85 billion
cubic feet of natural gas and 4.88 million barrels of oil.  Northstar Gulfsands
LLC has replaced some 115% of its production with new reserve additions since 1
November 2004 through its current programs of field re-development and
exploration.



Gulfsands' CEO, John Dorrier, said:



'We are very pleased with the current status of the Gulf of Mexico reserves base
and what we have been able to achieve through re-development and exploration.
The replacement of 115% of the Gulf of Mexico production since 1 November 2004
is in line with our performance expectations for 2005.  We have more wells yet
to drill in 2005 which should result in further reserve and value additions
before year end.'


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 Group 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 58.1
billion cubic feet of natural gas equivalents, consisting of 28.85 billion cubic
feet of natural gas and 4.88 million barrels of oil as of 1 July 2005.



•         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 quarter of
2006. 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.



•         Onshore USA

Gulfsands operates onshore USA through its subsidiary company Darcy Energy LLC.
Gulfsands recently increased its ownership in Darcy Energy to 80%.  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 per day and 36 barrels of condensate per day.  Production from this
well should commence by October 2005.  Darcy Energy has a 34.375% and 37.5%
working interest in these fields respectively.


                      This information is provided by RNS
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