EnerGulf Resources Inc.

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EnerGulf Announces Private Placement To Raise $18 Million

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EnerGulf Announces Private Placement To Raise $18 Million VANCOUVER, BC (May 29, 2012), EnerGulf Resources Inc. (TSX-V: ENG; FSE: EKS) (‘EnerGulf’ or ‘the Company’) is pleased to announce the Company has engaged Jacob Securities Inc. (‘JSI’) of Toronto, Ontario, as agent, in connection with a private placement offering of units (Units) to raise up to CAD $18 million, on a best efforts basis (the Offering). Each Unit is priced at $0.45 and will consist of one common share and one-half of one common share purchase warrant (a ‘Warrant’), each whole Warrant exercisable at $0.65 to purchase one common share for a period of 24 months from the closing date. The Warrants will be subject to acceleration, at the option of the Company, in the event the trading price of the shares of the Company closes at or above $1.00 per share for 10 consecutive trading days at any time after four months from closing of the private placement.

EnerGulf has agreed to pay JSI a 6% cash commission on the gross proceeds and broker warrants exercisable to purchase common shares at $0.45 for a period of 18 months in the amount of 6% of the total number of units. The Company may also pay other fees with respect to the private placement in accordance with the policies of the TSX Venture Exchange with respect to a portion of the private placement. Closing of the Offering is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The net proceeds of the Offering will be used for the upcoming drilling program on the Lotshi Block in the Democratic Republic of Congo and for general working capital. The Company continues in discussions with potential farm in participants for both the Lotshi Block and Block 1711 Offshore Namibia.

On behalf of the Board of Directors,
EnerGulf Resources Inc.

‘Jeff Greenblum’

Jeffrey L. Greenblum, Chairman & CEO

 
 
- EnerGulf Resources Inc.