Block26 Re-Entry

Block 26 Re-Entry

Gulfsands will not, however, determine alone when we return to operations.  When circumstance allow, and all sides agree that safe, secure and legal operations can be recommenced, Force Majeure will need to be lifted, which will allow us to return to operations and bring with us expertise, know-how and much needed investment, jobs and training.

Three key conditions need to be met to lift Force Majeure:

1. Legal and commercial clarity on the arrangements for lifting Force Majeure;
2. Clarity on the recent international sanctions amendments and waivers to allow a return by international companies; and
3. The security situation must be sufficient that it allows for safe and secure operations.

Upon the lifting of Force Majeure, Gulfsands will bring investment, expertise, human resources, and world-leading technologies and know-how to rehabilitate the fields, increase their production, and reduce environmental pollution.  This will generate significant economic activity including jobs, training and commerce for the communities in which we operate.

Gulfsands has undertaken a significant amount of internal technical work, formalising and analysing existing data, which has also been subject to a Competent Persons Report review by OPC as part of this re-entry preparation.  The OPC review covered a comprehensive Field Development Plan of existing discoveries as well as a comprehensive Exploration Programme for Prospective Resources within the exploration portfolio of identified prospects.

The Board believes, and the CPR has confirmed that on a gross basis, Block 26 could be proven to contain over a billion barrels of recoverable resource with the potential for production levels of around 50,000 boepd from existing discoveries in the near term, and over 100,000 boepd from a full block development incorporating the potential exploration upside.

Gulfsands has already begun dialogue with the Syrian authorities about how the process to return to operations will evolve so that a clear transition plan to recommencement to operations can be undertaken. Gulfsands will continue to build ESG and sustainability considerations into all its re-entry planning,