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ENERGULF RESOURCES INC.
200 - 675 West Hastings Street, Vancouver, British Columbia V6B 1N2
Tel: (604) 408-1990 Fax: (604) 801-5499
TSX.V Trading Symbol: ENG
24,047,094 shares issued and outstanding
ENERGULF RESOURCES TO START DRILLING PROGRAM AT OFFSHORE NAMIBIA BLOCK 1711 WHILE AWAITING PRESIDENTIAL DECREE IN DRC
Energulf Resources is an international oil and gas exploration and production company. Energulf, under the guidance of Jeff Greenblum – Chairman of the Board, are pursuing exciting prospects in several African nations in order to capitalize on the ever growing demand for oil & gas resources. These areas have shown fantastic potential from seismic surveys and direct hydrocarbon indicators. Energulf believes that there has never been a better time to maximize shareholder value by focusing on the world’s most exciting prospective hydrocarbon regions.
OFFSHORE BLOCK 1711-NAMIBIA, AFRICA
INSHORE LOTSHI BLOCK-DEMOCRATIC REPUBLIC OF CONGO, AFRICA
These prospects represent the forward movement of Energulf’s Pan-African business plan of building a strong portfolio of high impact exploration opportunities.
"Namibia Block 1711 contains the most attractive undrilled structure that I have seen in over 40 years of exploring for oil and gas internationally."
Dr. Bill St. John
Energulf’s Senior Advisor for African Exploration
Energulf Namibia Ltd., wholly owned subsidiary of Energulf Resources Inc., has been formally assigned a 10% working interest in offshore Namibia Block 1711. Under the terms of the agreements Energulf has been assigned a 10% working interest (paying 10% of the
exploration and development costs), being a 9.5% net revenue interest (after the underlying royalty to Namibia). The operator of the block is Sintezneftegaz, a federation of Russia oil & gas company based in Moscow, with a 70% interest. PetroSA, South Africa’s national oil company, holds a 10% interest. The remaining 10% is divided between NAMCOR, the national oil company of Namibia, and local black empowerment (BEE) groups at 7% and 3% respectively. Sintezneftegaz will be solely responsible for carrying the NAMCOR and BEE group’s interests.
The exploration license is granted for a term of four years, with two additional two year renewal exploration periods. The initial work program provides for geophysical work in year one and requires the drilling of two exploration wells (the first well to be drilled by at least year two). The minimum exploration expenditure over the initial four year period is US$8,400,000, and a further US$3,700,000 combined over both two year renewal periods.
In September 2006 Energulf received Netherland, Sewell & Associates, Inc. prospective resource assessment of the Kunene and Hartmann prospects in Block 1711. The report is in accordance with Canadian NI 51-101 and other Canadian, United States and International standards.
Two big prospects: 23,000 and 84,000 acres
3.2 billion BOE most likely – 6.0 billion BOE upside – NSAI resource assessment
Active petroleum system present
No wells in the basin
Spectacular direct hydrocarbon indicators
Over the course of 2007 Energulf will be looking to contract a rig for the drilling of the exploratory wells. Haliburton has been contracted to develop the drilling program and engineering monitoring for the Kunene #1 exploratory well construction. The contract for the environmental impact assessment for scheduled drilling operations on Block 1711, required by the PSC, has been awarded to Risk-Based solutions of Namibia. Drilling is scheduled to commence by March 2008.
Energulf Africa Ltd., a wholly owned subsidiary of Energulf Resources Inc., has been granted by the granting authority of the Democratic Republic of Congo a hydrocarbon exploration and production concession covering the Lotshi block in the "Les Zones du Bassin Cotier" (ZBC). Under the terms of the concession grant, Energulf has agreed to pay a signature bonus to the DRC government of US$500,000 for a 90% interest in the five year exploration license and will provide a bank guarantee of an additional US$500,000 towards the work program on the block. Energulf will be the operator of the block and will carry Cohydro, the parastatal oil company of the DRC, for a 10% interest in the block.
The Lotshi block covers approximately 475 square km of the ZBC in the onshore coastal salt basin of western DRC and is contiguous to the highly prospective Cabinda area of Angola. The offshore blocks of Cabinda closest to the ZBC contain the giant (more than 500 million barrels of recoverable reserves) Malongo and Takula field complexes operated by Chevron.
83% - 90% working interest
5 year term renewable for two additional five year terms
600 km of existing 2D seismic data
Potential for several hundred million barrels of oil
Pursuant to DRC law, the concession grant requires presidential decree, which Energulf believes shall be forthcoming shortly. A further 225 km of new seismic data is planned.