OilVoice - Gulfsands Rejects Unsolicited Approach

Gulfsands Rejects Unsolicited Approach

Sunday, March 21, 2010

The board of directors of Gulfsands Petroleum plc confirms that it has rejected a preliminary approach received on 18 March regarding a possible offer for the Company.

The approach is highly conditional and subject to due diligence and other material pre-conditions. Further, this approach was unsolicited and Gulfsands is not currently involved in any process to solicit offers for the Company.

The Board is unanimously of the view that the proposal is wholly inadequate and materially undervalues the Company.

The Board is confident in Gulfsands' strategy to become one of the pre-eminent exploration and production companies in the Middle East and to continue to demonstrate tangible growth.

Gulfsands is currently working on exploration and appraisal activity around its 17,000 barrels per day Khurbet East field on its 50% owned and operated Block 26 in Syria. In January the company received the go-ahead to begin developing the nearby Yousefieh field and production there is expected to start in April and ramp up to 6,000 barrels per day by 2012.