http://www.gulfkeystone.com/ The firms exploration programme in Algeria is going well and "the shares look good value", say the Investors Chronicle. Your comments please. goal.

GULFSANDS PETROLEUM PLC

Operations Update


Block 26 Fields Production Performance

Khurbet East Field Drilling Results

Forward Drilling Programme

3D Seismic Programme

London, 26th July 2010: Gulfsands Petroleum plc ("Gulfsands", the "Group" or
the "Company") (AIM: GPX), the oil and gas production, exploration and
development company with activities in Syria, Tunisia, Iraq, and the U.S.A., is
pleased to provide the following update on the Company's operations at Block
26, Syria where Gulfsands holds a 50% interest and acts as operator.

Block 26 Fields Production Performance

Gross oil production from the Khurbet East and Yousefieh fields combined has
been increased to approximately 20,000 barrels of oil per day ("bopd") during
the month of July. Gross cumulative oil production from the two fields has now
passed 9.8 million barrels.

The Khurbet East field continues to sustain production of around 18,000 bopd
with minimal decline in reservoir pressure (less than 1%).

Production of oil has been underway at the Yousefieh field since start-up on 24
April 2010 from two vertical wells, Yousefieh-1 and 3. Early production and
pressure data from the field indicates that reservoir performance is better than
had been expected. During May and June a highly successful acid stimulation
programme was conducted which succeeded in removing the wellbore formation
damage identified as being present in both wells, and which had been limiting
production performance. As a result, field production has been increased from an
initial 1,200 bopd to a stable rate of 2,000 bopd, and at a higher wellhead
flowing pressure. No formation water is being produced.

A third development well, Yousefieh-4H, will be drilled during the third quarter
of 2010. This well is planned as a horizontal producer located approximately
500 metres north of the Yousefieh-1 production well. It is anticipated that
Yousefieh-4H will increase the field's production capability by an additional
1,000 bopd.

Gross production rates from both fields are now at a level where they are
constrained by the logistics of the export trucking arrangement located at the
Khurbet East Early Production Facility ("EPF"), which has been in place since
the Khurbet East field came on-stream two years ago.

The Company is nearing completion of an 8" export pipeline that is expected to
replace the trucking export operation during the third quarter. Once this
pipeline is operational and subject to further pending analysis of the
throughput capacity of the EPF, consideration will be given to increasing gross
production beyond 20,000 bopd.

Khurbet East Field Drilling Results

Horizontal production well Khurbet East 15H ("KHE-15H") targeting the producing
Cretaceous Massive formation in the north central crestal area of the Khurbet
East field has been successfully drilled, completed and tied-back to the EPF.
The well encountered the Massive reservoir approximately 4 metres deeper than
prognosed, and a horizontal reservoir section of 210 metres was drilled and
completed open hole. KHE-15H is currently producing oil at around 2,500 bopd
with no associated production of formation water. Placing the KHE-15 well on
production at this rate has enabled off-take from other Khurbet East wells to be
reduced as part of the Company's reservoir management strategy directed at
optimizing the future recovery of oil.

Vertical delineation well Khurbet East 16 ("KHE-16"), drilled as a
north-easterly step out from the central crestal area of the Khurbet East field,
was designed to evaluate the potential for an extension of the crestal
karstified reservoir along a ridge that has been interpreted to lie to the
north-east. The KHE-16 well was drilled 1.5 kilometres to the north-east of
discovery well KHE-1 and encountered the Cretaceous Massive formation at 1,970
metres Measured Depth (1,562 metres True Vertical Depth below mean sea level),
some 39 metres deeper than the pre-drill prognosis. Approximately 9 metres of
high quality karst reservoir was encountered near the top of the reservoir
interval.

During production testing operations the KHE-16 well initially flowed clean oil
to surface under artificial lift followed by a rapid increase in water-cut to
approximately 98% of total fluids produced. The presence of a high quality
reservoir in the area was confirmed however, with total fluid production rates
in excess of 3,500 barrels of fluid per day achieved on test. Although these
results may indicate that the initial oil-in-place within the north-east portion
of the field is less than expected, reservoir quality is better than expected
due to the presence of the high quality karst reservoir and as evidenced by the
attractive total fluid production rates achieved. The well has now been
suspended and initially will be used as an observation well for reservoir
pressure analyses. Geological and reservoir studies will be conducted over the
next several months to assess any impact of the KHE-16 results on the Khurbet
East field in-place and recoverable oil volumes.






The Khurbet East 17H ("KHE-17H") horizontal production well targeting the
producing Cretaceous Massive formation in the south central crestal area of the
field has encountered the reservoir 8 metres deeper than the pre-drill
prognosis. A horizontal reservoir section of 86 metres has been drilled and
completed open hole, and the well currently awaits tie-back to the EPF where a
production test can be conducted. The KHE-17H well will perform a similar role
to well KHE-15H, enabling improved reservoir management in order to optimize oil
recovery from the Khurbet East field.

Forward Drilling Programme

The rig is now being moved to the Yousefieh field area to drill the Yousefieh-4H
("Yous-4H") well as a horizontal development well.

Operations at Yous-4H will be followed by the exploration well Yousefieh South
1 (YSO-1) located approximately 2 km south of the Yousefieh field and targeting
a similar objective to the producing reservoir at Yousefieh. The rig will then
move back into the Khurbet East field area to drill an additional vertical
delineation well, KHE-18. Additional exploration, appraisal and development
locations are also currently being assessed.

3D Seismic

A new 3D seismic programme of 865 square kilometres will be acquired in an area
west of the Greater Khurbet East seismic survey, where a number of exploration
leads have been identified on vintage 2D seismic data. The survey is scheduled
to commence in mid-August, and data acquisition is expected to be completed
during the fourth quarter of 2010, with delivery of the processed data in the
first quarter of 2011. Once this survey is completed, the Company will have
acquired a total of approximately 2,000 square kilometres of contiguous 3D
seismic data over the Khurbet East play fairway.

Commenting on this operations update, Ric Malcolm, CEO of Gulfsands, said

"It has been two years since Gulfsands commenced oil production at Khurbet East,
and we have now achieved a gross daily average production rate in excess of
20,000 bopd from our two producing fields, with cumulative production of
approximately 10 million barrels of oil. These are significant milestones, and
are the result of the continued dedication and spirit of cooperation exhibited
by our employees and industry partners.

We are pleased with these results, and look forward to continuing our brisk pace
of exploration, development and production with our upcoming drilling and 3D
seismic acquisition programmes."

cyril

Euhh...wrong thread possibly ?....sorry...

GKP and GPX are easily muddled

Sorry cyners, yes did get E, many thanks.

hope it proves of interest .... whitby is a must for fresh lobster! .... that and scarborough are very interesting historically too, though i have been to neither

From a trusted poster who works in the city,"treat as a rumour"?
cyril

massive news apparently, rejection of bid more than three times current price.don't shoot the messenger but seems many in the city are privy.Look at level2 for gawds sake.

someone just bought 150,000

certainly on the bubble again, and 7m already traded

============

popping and out of auction like a good 'un
hard to believe that this is just the lemmings, though it's all too eay to get caught out, as we all know

You get the feeling that we could get a 100p surge at any time... in a matter of minutes.....takeover coming ?....would not be surprised...

Can't say,but agm soon. excellent summing up by dalesman.
cyril


dalesman - 27 Jul'10 - 19:02 - 28578 of 28582


On holiday visiting the children but just looked in to see we are a little down.

Not surprising given the fickleness of day traders there does seem to be a lot of new names on the board:0) All the focus from scanning the boards, seems to be on short term price action and the bigger picture does not seem to get a look in! So here is a review from a very misty Cornwall!

When there is a pull back it is good to review what news could change the SP going forwards.

1.Take over news. Volume has been large which indicates that even if there is no news there is plenty of cash available to pile in when positive news is announced.

I understand that there are some large players out there who are quietly stake building and days like today is a golden opportunity for them.

2. The Sheik Adi Spud should be this week. Sheik Adi is the biggy but I would like to hear that the ETAMIC payment has been made. From memory (and Im sure Zengas will kindly correct me if Im wrong) the payment has to be made within 30 days of a major fund raising So-

2b is news confirming the transfer of the ETAMIC entitlement to GKP and bye bye to ETAMIC involvement.

3. Then we have first flow test results from the Shaikan work-over rig. This should not take too long - 1 to 2 weeks but dont hold me to that!
As the rig does its thing, flow rates and recovery factors will be firmed up which will help with defining 2P reserves. This will help firm up the NAV.

The Recovery factor is one of the variables that can give a huge increases in valuation. So lets hope the submersible pumps do the business. This may take some time.

4.First Production from Shaikan - end of August? The infrastructure in terms of storage facilities should be in place very soon along with shipment facilities, These should just about be ready to go. This will give a much needed revenue stream to GKP and we should see cost oil payments flowing into GKP coffers soon even if we sell into the local market. If we have access to the export pipeline and the KRG turns on the taps these payments will escalate.


5.Akri Bejeel. Mol has held on to the Weatherford rig for much longer than expected, completing extensive testing and we have had already had an insight into the OIP via the UBS note

(7.95billion barrels) This news is just around the corner.

6.We get a date for BB drill out of Genel.

7a Possible surprises. There are unassigned blocks next door to Shaikan could GKP be going for more?

7b News of other TOs on other KRG E&Ps will help define the going rate!

Im sure Ive missed other news but the above is good enough to be going on with!

Dalesman

How about the possibility of Heritage Oil bidding ?,...now it has the Tullow oil cash.....

Maybe but with M/Cap at 600m(breaking 90p again) i would think they need to start mear 2billion ,which should flush out the Chinese?

just for everyone's memory bank - average daily volume is 4.9m

if they rejected first offer at 3x current value.
hope bidders come ack with improved offer.
going by rumor.

there ain't no bloody offer on the table - pure unsubstantiated gossip and hype

i hope you are wrong. if ou are correct there is still huge upside to gkp

so do i. Hope your wrong cynic that is..

only 6.5m traded today so perhaps the major flurry a few days ago was just one of those nonsense things that happens occasionally

I've ignored this bid talk the last few sessions but what about the HOIL situation now they have cleared funds? Is it somebody putting 2 and 2 together or does this story have substance? I note no comment thus far from B.O.D at GKP? Thoughts/comments gladly received.

Well come Tuesday (AGM)all should be revealed,rest is guess work?
cyril

kate - i think the t/o talk (pure gossip) is best ignored even if such an eventuality is far from impossible .... whether or not the stock is worth X is very much a personal view .... however, for sure there are lots of large long derivative holdings, from which one can rationalise all sorts of things