Contractors Unlimited

Gulfsands Continues to Reject Unsolicited Approach

The board of directors ("the Board") of Gulfsands Petroleum plc ("Gulfsands", "the Company" or "the Group") announces that, on 27 April 2010, it received a reiteration of the original proposal from Oil India Limited and Indian Oil Corporation Limited (together "the Consortium") following their initial approach regarding a possible offer for the Company on 18 March 2010.

The unchanged proposal remains at an indicative offer price of 315 pence per share for the entire issued and to be issued share capital of Gulfsands and continues to be highly conditional and subject to due diligence and other material pre-conditions.

The Board remains unanimously of the view that the proposal is wholly inadequate and materially undervalues the Company, particularly in light of recent newsflow, including the 25% increase in the Group's 2P working interest reserves for the year ended 31 December 2009, announced on 30 March 2010.

Gulfsands welcomes the recent decision by The Panel on Takeovers and Mergers setting a deadline of 5pm on 11 May 2010 for the Consortium to either announce a firm intention to make an offer for Gulfsands or announce that it does not intend to make an offer for Gulfsands.

Gulfsands confirms that this announcement has not been made with the agreement or approval of the Consortium. There can be no certainty that an offer will be made nor as to the terms on which any offer might be made.

Published 30/04/2010

Gulfsands is listed on the AIM market of the London Stock Exchange.


Gulfsands owns a 50% working interest and is operator of Block 26 in North East Syria. The Khurbet East oil field was discovered in June 2007 and commenced commercial production within 13 months of the discovery. The Yousefieh oil field was discovered in November 2008 and commenced commercial production within 18 months of discovery. The combined gross oil production from both Khurbet East and Yousefieh fields is now approximately 18,000 barrels of oil per day and utilizes early production facilities leased from the Syria Petroleum Company. Block 26 covers approximately 8,250 square kilometres and encompasses existing fields which currently produce over 100,000 barrels of oil per day, and are operated mainly by the Syrian Petroleum Company. The current exploration licence expires in August 2010 and is extendable for a further two years. Gulfsands' working interest 2P reserves in Syria at 31 December 2009 were 46.0 mmbbls.


Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry of Oil in Iraq for the Maysan Gas Project in Southern Iraq, following completion of a feasibility study on the project, and is negotiating details of a definitive contract for this regionally important development. The project will gather, process and transmit natural gas that is currently a waste by-product of oil production and as a result of the present practice of gas flaring, contributes to significant environmental damage in the region. The Company is actively engaged in discussions with respect to financing and potential equity partners. Gulfsands has no reserves in Iraq.

Gulf of Mexico, USA:

The Company owns interests in 37 leases offshore Texas and Louisiana which include 24 producing oil and gas fields with proved and probable working interest reserves at 31 December 2009 of 4.6 mmboe.

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