EnerGulf Corporate Update; Cancelled Private Placement, 1711 & Lotshi Block Updates
VANCOUVER, BC (July 27, 2012), EnerGulf Resources Inc. (TSX-V: ENG; FSE:EKS) (“EnerGulf” or the “Company”) announces that due to market conditions the Company will not proceed with the private placement announced in the press release dated May 29, 2012. The Company had announced a brokered financing to raise up to CAD $18 million, on a best efforts basis
The Company continues with its efforts to develop its African assets. Over the past twelve months the Company has:
- Secured from the Minister of Mines and Energy of the Republic of Namibia for Block 1711, the second two year renewal period, from March 31, 2012 to March 31, 2014.
- Completed a prospective resource report, for four prospects and nine leads on the 2.2 million acre, Block 1711, offshore Namibia, including a mean estimate of 3.166 billion barrels of potentially recoverable oil. The report was prepared by independent oil and natural gas reservoir engineers Netherland Sewell and Associates Inc. of Dallas, Texas, and is available on SEDAR and the EnerGulf website.
- Negotiated to increase the Company’s interest from 10% to 15% and continues as interim Operator.
- Marketing and conducting data room presentations for Block 1711 with qualified industry potential participants, on behalf of the Government of Namibia.
- Commissioned and completed a prospective resource estimate for the 505 sq. km., Lotshi Block, Democratic Republic of Congo (“DRC”), including a mean estimate of 313 million barrels of potentially recoverable oil, of which EnerGulf owns a 90% working interest. The report was prepared by DeGolyer and MacNaughton (D&M), an independent international petroleum consulting firm located in Dallas, Texas. It is available on SEDAR and the EnerGulf website.
- Prepared and secured a rig for a 2-3 well drill program.
- Constructing a school and medical clinic on the block for the local communities per the terms of the Production Sharing Contract (“PSC”).
- Marketed the Lotshi block for qualified participant(s). The Company entered into negotiations with various potential participants but has not finalized an acceptable agreement. Moving forward, EnerGulf continues to market Block 1711 to qualified industry co-venturers that could provide successful operating and investment capability. Following the appointment of a new operator, a 3-D seismic program will be conducted to enhance the overall understanding of the geology of the block and assist in identifying the best drill targets for the 2013 exploration season. EnerGulf now plans a Lotshi Block, 3-4 well drill program for the next dry season and will continue to market the opportunity to potential farm-in participants. The PSC from the DRC remains in good standing. The Company will announce an appropriate financing when market conditions permit.
On Behalf of the Board of Directors of ENERGULF RESOURCES INC.
Jeffrey L. Greenblum, Chairman & CEO