Offshore staff

Gulfsands Petroleum said its GoM production has returned to pre-2005 hurricane levels. In addition, the company reported that natural gas has been discovered in two new development wells in the West Delta area.

The improvement in daily production results from recommencement of oil production from the Vermilion 332 and 315 oil fields after repair of a lateral pipeline in the area that was damaged by Hurricane Rita.

Further increase comes from completion and connection of two exploration wells in the Eugene Island area drilled in 2005.Plans are to drill two more exploration wells in the Eugene Island 58 area during the fourth quarter of 2006 in which the Company has
a 25.64% working interest.

6/14/06