Gulfsands Announces Successful Well at Eugene Island 57 in the US Gulf of Mexico

Wednesday, May 21, 2008

Gulfsands Petroleum, the oil/gas company with producing assets in the US, development assets in Syria and exploration assets in Iraq, announced today a significant gas find in the Gulf of Mexico. The EI57#16 well, which Gulfsands has a 25% working interest, flowed 400-600 barrels of oil equivalent. Gulfsands is already producing between 2,600 and 2,800 net barrels of oil equivalent from the Gulf of Mexico, so this discovery, which goes into production in August, will further improve cash flow and profitability for the company, with a payback in less than 2 months for the cost of drilling this 12,000 foot well. This announcement follows on the heels of the successful KHE-5H well in Syria, which flowed over 2,000 barrels of oil per day, announced on 13 May 2008.

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