Reserves and Resources

Reserves and Resources

Until 2015, hydrocarbons related to the Block 26 discoveries were classified as Reserves.  During 2015, the Reserves were reclassified to Contingent Resources as a result of the EU/UK Sanctions on Syria at that time, and the uncertainty in the timeline at that time when sanctions may be lifted (where in such a circumstance the SPE PRMS Guidelines suggest that if the (re)commencement of development cannot be guaranteed to be within five years from the date of evaluation, Reserves are classified as Contingent Resources rather than Reserves). 

Over recent years, particularly from 2019 onwards, Gulfsands team completed significant internal technical work to review the estimated Reserves and 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 (Reserves, 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”).

From 2015 – 2025, the classification of the Block 26 discoveries continued to be classified as Contingent Resources.

During early 2026, in parallel to resuming Block 26 development, production and exploration, a new CPR was completed by OPC, based on data and information up to and including 1 May 2026, with the CPR effective / dated 1 May 2026. 

In estimating the Reserves and Resources, it has been assumed that the period of time elapsed during which the Group has declared Force Majeure on its Block 26 development, production and exploration 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 Block 26 Production Sharing Contract (“PSC”).  Discussions are underway with the Syrian Petroleum Company (“SPC”) to confirm the precise additional time that will be added.

The Block 26 Reserves, Contingent Resources, and Prospective Resources (as audited/validated by OPC) as at 1 May 2026 are as follows (Gulfsands Net 50% Working interest):

Reserves

Contingent Resources

Prospective Resources

OPC also reviewed the portfolio of nine identified prospects within Block 26 as of 1 May 2026, and validated them as Prospects under PRMS definitions and also estimated associated Prospective Resources, on a risked and un-risked, pre-royalty basis (as of 1 May 2026), summarised below.

Prospective Resources (Unrisked)

Prospective Resources (Risked)