UPDATE 1-Explorer Gulfsands starts production at Yousefieh field

* Says spuds Khurbet East-15H well

* Expects to drill further well in Yousefieh
(Adds details)

April 29 (BestGrowthStock) – Oil explorer Gulfsands Petroleum
(GPX.L: ) said production of oil had begun at the Yousefieh field
and spudded the Khurbet East-15H well in Syria.

The company — which has assets in Syria, Iraq and the
United States — said initial rates from the Yousefieh-1 and
Yousefieh-3 wells have a combined yield of about 1,200 barrels
of oil per day (bopd).

Gulfsands, which recently received a takeover approach from
Indian Oil Corp (IOC.BO: ) and Oil India (OILI.BO: ), expects to
drill a further development well in the Yousefieh field later
in 2010.

The explorer expects total Syrian production to increase to
about 20,000 bopd from about 18,000 bopd in the second half of
2010, Chief Executive Ric Malcolm said in a statement.

On April 22, Gulfsands Petroleum had asked Britain’s
Takeover Panel to issue a deadline to its two Indian suitors, a
source familiar with the situation had told Reuters.

At 0736 GMT, shares of Gulfsands were up 0.6 percent at 320
pence on the London Stock Exchange.

Stock Market Trading

(Reporting by Anirban Sen in Bangalore; Editing by Maju

UPDATE 1-Explorer Gulfsands starts production at Yousefieh field