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AIM: GPX

Oil Barrel Conference London Andrew Rose : Chief Financial Officer. AIM: GPX. 12 February 2009. Gulfsands Today. New Management team in place, Group HQ moved to London WI Production currently ~ 6,000 boepd Net cash flow positive at current oil prices

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AIM: GPX

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  1. Oil Barrel Conference London Andrew Rose : Chief Financial Officer AIM: GPX 12 February 2009

  2. Gulfsands Today • New Management team in place, Group HQ moved to London • WI Production currently ~ 6,000 boepd • Net cash flow positive at current oil prices • Significant asset in Syria with 2 discoveries (one in production, one in appraisal) • further exploration potential : large 3D seismic programme under way • Major strategic opportunity in Iraq • Maysan project is first step in wider strategy • 2P Reserves :18 mmboe, 3P : 31 mmboe (net entitlement, end 2007) • New Reserves audit to be completed in March • Strong balance sheet • Cash of $35M*, no debt *(@31.12.08, excluding blocked cash to back P&A liabilities) New Team, New Energy, New Focus

  3. Management Team EXECUTIVE • Ric Malcolm, CEO (joined Oct 08) • Geologist : ex OMV, Mobil, Ampolex (Australian E&P), Woodside • Mahdi Sajjad, President • Founder of GPX : long experience in Middle East energy & mining • Andrew Rose, CFO (joined Aug 08) • Investment Banker : ex CFO of Burren Energy • Ken Judge, Director Corporate Development • Lawyer : background in energy & mining, director of several listed co’s NON-EXECUTIVE • Andrew West, Chairman • Investment Banker : Long advisory experience in oil & gas sector • David Cowan, Non-exec Director • Lawyer : natural resources and Middle East experience

  4. Strategy • Maximise potential in Syria : • Capture Block 26 upside before Aug 2012 deadline • New projects : capitalise on strong local relationships • Build significant business in Iraq • Maysan project is a means to an end • Limit corporate capital commitment and risk exposure • Concentrate on organic growth in near term • Acquisitions only if compelling justification exists • Retain Middle East focus • Maintain strong balance sheet and cash flow headroom • Preserve “optionality” Vision : Become a Middle East partner of choice

  5. Theatre of Operations

  6. Syria : Oil Production Source : BP Statistical Review of World Energy 2008 Proved Oil Reserves 2.5 billion barrels (end 2007)

  7. Syria : Oil/Gas Infrastructure Block 26 (Gulfsands Op.) Oudeh, Tishrine and Sheikh Sulaiman PSA’s (Tanganyika, recently sold to Sinopec) Euphrates Graben (Shell and Total have had operations in the area since the 1980’s) Palmyrides (PetroCanada and INA have each announced gas developments)

  8. The scale of Block 26…

  9. Block 26 : Fields, Pipelines • Neighbouring fields : > 130,000bopd • Export Pipeline runs through KHE field • GPX has rights below existing fields • PSC : cost recovery pool = entire block • 25 year term + 10 year extension

  10. Khurbet East Field • Multi-zone hydrocarbon discovery with KHE-1 (June 07) • Development of Cretaceous “Massive” Reservoir approved in February 2008 • First production achieved through Early Production Facility in July 2008 • Additional hydrocarbon resources in deeper Triassic Butmah and Kurrachine Dolomite reservoirs(exploitation will require permanent facility installation)

  11. Khurbet East Field : Production Choke back KHE-2 Pressure testing Pressure testing 5 wells on production (2 horizontal) Cumulative gross oil production to 31 January - 1.80 mmbo. Forecast to reach 2.0 mmbo by ~20th February

  12. Khurbet East : Future plans • Increase EPF capacity to 18,000 bfpd (+ 50%) • Estimated timing Q3 2009 • Drill 3 additional development wells in 2009 to support facility expansion • Untreated crude currently being trucked 33 km to SPC processing facilities • Drill north and south delineation/water disposal wells • North well (KHE-7) drilled outside of original field boundary (Jan 09) • Structurally higher than expected, reservoir quality lower than expected, low impact result • Full Field Development being prepared • Contracts expected to be awarded mid 2009 • Commissioning expected end 2010 • Previously targeting 30,000-40,000bfpd capacity, in review due to Yousefieh discovery

  13. Yousefieh Discovery (Nov 08) Yousefieh-1 Composite Log • Yousefieh discovery well (Y-1) located ~ 3km from the Khurbet EPF • Appraisal well Y-2 (just drilled) to test the interpreted eastern limit of the Field

  14. Yousefieh Follow-up • Yousefieh discovery confirmed the presence of a new Cretaceous play type in the block • Further production tests on Y-1 & Y-2 planned, development options could include tie-in to Khurbet East EPF • Possible 3rd well late 2009? • Structural/stratigraphic traps such as Yousefieh ,as well as structural traps similar to Khurbet East, are the primary objectives of the current 640 sq km 3D seismic programme.

  15. Block 26 : Exploration • 640 km² 3D seismic acquisition under way (processed data expressed Q3 09) • Will give > 1000 km² of contiguous 3D seismic data in the greater Khurbet East-Yousefieh area • Generate drilling prospects for 2010 • Exploration period finally expires Aug 2012 Karatchok Hamzeh Oudeh Souedieh Existing Fields KHE 3D (acquired in 2008) 2009 3D Programme (acquisition in progress) Naour West 3D (Acquired in 2008, multiple leads identified)

  16. Iraq • Active Gulfsands presence in Iraq since 2003 • (Mahdi Sajjad is Iraqi) • Maysan gas capture project under negotiation for several years • Contract nearing signature • Ultimate goal is to secure equity interests in oil & gas field developments • Iraq ex-Kurdistan is primary focus • Interesting Iraq / Syria synergies (eg mid stream) • Keep Group risk and financial exposure to modest levels • Bring in external financing and partners • “Prime the pump” : maximise bang for buck

  17. Maysan Gas Project: Capturing Flared Gas • Phase I : • Scope: • 150 MMscfd Gas Plant • 150 MW Power Plant • 9 De-Gassing Stations to tie in • 1 Compressor Station • Products: • Dry gas for Power Stations • LPG • Condensate • Sulfur (future)

  18. Maysan Gas Project (cont’d) • Phase II Extend gathering system to first “make-up” field • Phase III Extend gathering system to additional fields • Phase IV Install 2nd Gas Plant LPG Line and Export Terminal Expand Gathering System as required

  19. Maysan : Potential Gas Volumes Phase I Phase II Phase III Phase IV

  20. Iraq’s Oil and Gas Sector: the opportunities Approx73 discovered fields 64Oil Fields, including:- -10 Super giant Fields* -12 Giant Fields** -9 Very Large Fields*** 9gas fields Current status:-   -Approx 23 producing fields -more than 50 discovered but undeveloped fields Proven Reserves:- -Approx 115 billion barrels of oil -3000 billion cubic meters of natural gas * Greater than 5 billion barrels ** Between 1 billion and 5 billion barrels *** Between 0.5 billion and 1 billion barrels

  21. US Gulf of Mexico : Properties Houston New Orleans 30 producing fields : shallow water “shelf” area Working interests 2% to 53%, average tax/royalty burden ~22%

  22. Gulf of Mexico : Production Oil & gas Working Interest Production • 2P Reserves : 6.8 MM boe* • 82% proved • 67% gas * As at end 2007 • Production badly affected by 2008 hurricanes : currently 950 boed (50% of prior level) • Anticipate returning to pre-hurricane levels in Q2 09 • Largely mature assets with limited further upside • Strategy : selective investment to maintain value

  23. Summary • New management team, new focus • Clearly defined vision and strategy • Significant upside from existing assets • Strong Balance sheet and cash flow • Plenty of news flow in 2009 Destined to be One of the Survivors

  24. Disclaimer This presentation is designed to provide information about Gulfsands Petroleum plc and its business and operations. It is intended as general information only and is not to be relied upon for any particular purpose. In particular, no information contained in this presentation constitutes, or shall be deemed to constitute, an invitation to invest or otherwise deal in any securities of Gulfsands Petroleum plc. Although we endeavor to ensure that the content of this presentation is accurate and up-to-date, Gulfsands Petroleum plc gives no representation or warranty as to the accuracy or completeness of any information contained in this presentation.

  25. APPENDICES

  26. Reserves

  27. History Yousefieh Discovery Watch this space New Executive Management Khurbet East First production 2009 Khurbet East development sanction Khurbet East Discovery 2008 Block 26 drilling campaign commences Partition of Northstar Gulfsands LLC 2007 Increase to 50% WI & Operator in Block 26 Syria Company floated on LSE (AIM) 2006 Maysan Project (Iraq) MOU signed 2005 Large acquisition in GOM Syria Block 26 PSC signed Increasing focus on Middle East 2004 First GOM acquisition Northstar Gulfsands LLC created 2003 2002

  28. Share price (1 year)

  29. Shareholders

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