EnerGulf Project Update
JANUARY 13, 2010
(Houston) EnerGulf Resources Inc. (ENG-TSXV) (EnerGulf or the Company): EnerGulf is pleased to provide updates of its projects, Block 1711 Offshore Namibia and the Lotshi Block onshore in the Democratic Republic of Congo (DRC).
Block 1711 - NAMCOR, (the National Petroleum Corporation of Namibia) has been appointed by the Block 1711 Joint Operating Committee, as interim operator replacing Sintezneftegaz Namibia Ltd. as the operator. Sintezneftegaz Namibia Ltd. has transferred its interest in Block 1711 to Nakor Investments Limited, a company affiliated with Sintezneftegaz/Sintez Group of the Russian Federation. It is now anticipated that the geophysics/geology work program required to evaluate the Kunene #1 well data and correlate it to the existing 2D and 3D seismic should commence in the near future. This work program will evaluate the Kunene, the Hartmann and other potential prospects on the block to better understand their hydrocarbon and reservoir potential, as well as to determine possible drill locations.
Block 1711 which comprises 2.2 million acres, is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola. EnerGulf has a 10% working interest in Block 1711.
Lotshi Block - The Company had previously announced it had entered into a contract with China National Administration of Research Institute of Coal Geophysical Exploration (CGE) to conduct a seismic acquisition program of the Lotshi Block to further define the prospectivity of the block and to identify optimal drill targets, and that preparatory work to prepare for the survey was underway. CGE has been delayed in commencing operations on schedule. EnerGulf is in negotiations to contract with other seismic companies, as it is assumed CGE is not able to fulfill its obligations.
EnerGulf has achieved the following milestones concerning its Lotshi Block work program: Completed its Environmental Impact Study required for operations on the block; has organized its office and operations in the field to conduct the seismic program; has secured various necessary equipment for the operation; performed dynamite testing; identified its base camp; completed its demining assessment; surveyed the true boundaries of the block and gained government approval; received its Exploration Permit from the government; reprocessed over 300 sq. km of existing 2D seismic data utilizing state of the art processing; planned the lines for the seismic program; acquired an aeromagnetic and gravity survey of the block and has begun a more detailed and state of the art evaluation and enhancement of those surveys; conducted various meetings to coordinate with the local authorities and population.
The Lotshi Block covers approximately 500 square km of the Les Zones du Bassin Côtier in the onshore coastal salt basin of western DRC. EnerGulf is the operator of the project. The Block is contiguous to Cabinda, Angola and is on trend with the M'Boundi giant field in Republic of Congo and situated in a similar geological setting. The Lotshi Block is also in relatively close proximity to the offshore Cabinda, Malongo and Takula giant field complexes operated by Chevron and the onshore and offshore Perinco fields in DRC.
EnerGulf has granted stock options to purchase up to 50,000 of its common shares to an officer for a period of five years at a price of $0.34 per share. The Company has also granted stock options to purchase up to 75,000 of its common shares for a period of two years at a price of $0.34 per share to Progressive Investor Relations the Company's investor relations provider. The options are subject to vesting in accordance with the policies of the TSX Venture Exchange and the Company's 2009 Stock Option Plan.
Jeff Greenblum, EnerGulf Chairman of the Board and CEO states, "We are continually striving to move our high quality work programs forward. With the appointment of our new interim operator, NAMCOR, for Block 1711 in Namibia, we should now see substantial upcoming progress in moving the project forward. We are disappointed our Lotshi Block seismic contractor has been delayed in its performance, but we are now organized in the field to jump start seismic operations once a seismic contractor is mobilized. We continue to be excited about our world class oil and gas prospects and are looking forward to advancing our programs to the drill phase."
EnerGulf Resources Inc. is a publicly traded international oil and gas exploration company focused on maximizing shareholder value by targeting high impact opportunities in the world's most prospective hydrocarbon regions.
On Behalf of the Board of Directors of
EnerGulf Resources Inc.
"Jeff Greenblum" Chairman and CEO