Reserves and Resources

Reserves and Resources

Since 2015 this classification as Contingent Resources has continued, even though, as at 31 December 2024, especially given the fall of the Assad Regime the Board believed that UK Sanctions would be lifted in a much shorter time frame.  This was borne out, with the UK Government lifting both financial and trade sanctions relating to the energy sector in first half of 2025.  The Board has not reclassified the Resources to reserves as at 31 December 2024 but expects, as confirmed by the OPC CPR, that the majority of the Contingent Resources will be reclassified as 2P Reserves upon the lifting of Force Majeure.

Over recent years, the Gulfsands team has undertaken significant internal technical work to review estimated resources as part of the preparation for its return to Syria. During 2019, and again in 2023, Independent consultants Oilfield Production Consultants (“OPC”) were commissioned to review, audit and validate this work, and prepare a Competent Persons Report (“CPR”). This exercise included a comprehensive review of the Block 26 interests (Contingent Resources and Prospective Resources) in accordance with the definitions and guidelines set forth in the 2018 Petroleum Resources Management System (“PRMS”) approved by the Society of Petroleum Engineers (“SPE”).

In estimating the Resources, it has been assumed that the period of time elapsed during which the Group has declared Force Majeure on its Block 26 development and production activities, will ultimately be added as an equivalent time period extension to the contractually specified Exploration Period and Production Concession Periods, as is anticipated by the PSC, although the precise additional time added will only be confirmed once the documentation of exiting Force Majeure is finalised.

Contingent Resources

The Group’s Contingent Resources in the 2023 CPR, have been rolled forward, updated and reconfirmed as of 1 January 2025, taking into account the production that has occurred during 2024, and other items. The 2C Contingent Resources in Khurbet East (Massive, Butmah and Kurrachine Dolomite), Yousefieh (Massive) and Al Khairat (Massive) fields as at 1 January 2025 were evaluated to be 108.0 million boe (net to Gulfsands), a 2.1% decrease in 2C Contingent resources compared to 110.4 million boe in the 2023 Annual Report, as follows:

Please note, certain figures may not add up due to rounding.
Gas is converted to mmboe at the conversion factor 1 bcf = 0.1667 mmboe

Prospective Resources

OPC also reviewed the portfolio of nine identified prospects within Block 26 as of 1 January 2025, and validated them as Prospects under PRMS definitions and also estimated associated Prospective Resources, on a risked and un-risked, pre-royalty basis, summarised below.

Prospective Resources (Unrisked)

OPC also reviewed the portfolio of nine identified prospects within Block 26 as of 1 January 2025, and validated them as Prospects under PRMS definitions and also estimated associated Prospective Resources, on a risked and un-risked, pre-royalty basis, summarised below.

Prospective Resources (Risked)

The following table is a summary of OPC’s estimate of the oil and gas Prospective Resources (Risked) attributable to Block 26 as of 1 January 2025. The figures are based on Gulfsands net 50% working interest ownership: