EnerGulf Corporate Update; Dismissal of Suit, Arbitration Award
DALLAS, TEXAS (May 17, 2013) EnerGulf Resources Inc. (TSX-V: ENG; FSE: EKS) (“EnerGulf” or the “Company”) is pleased to report that the lawsuit brought against the Company by Veritas DGC Limited and Veritas Geophysical (Nigeria) Limited (“Veritas”) has been finally dismissed by the Supreme Court of British Columbia. Costs of the action have been awarded to EnerGulf as the prevailing party to the litigation. Veritas claim of $700,000 plus interest is now eliminated as a Company contingent liability.
Lotshi Block, Onshore Democratic Republic of Congo: The Company continues its efforts to secure funding and to identify qualified participant(s) for the drill ready Lotshi Block, onshore Democratic Republic of Congo (“DRC”). As previously reported, a prospective resource estimate prepared for the Lotshi Block includes a mean estimate of 313,176,000 barrels of potentially recoverable oil. The report was prepared by DeGolyer and MacNaughton (D&M), an independent international petroleum consulting firm located in Dallas, Texas. The report is available on SEDAR and on the EnerGulf website. The Block is situated on the far west side of the DRC contiguous to Cabinda, Angola, next to the Atlantic Ocean. The Lotshi Block is believed to be on trend with the billion barrel M’boundi field in the Republic of Congo and has at least 7 independent prospects.
The Company also reports that cross-awards have been made in the arbitration proceeding between the Company and The Geophysical Institute of Israel (GII), recently concluded in Houston, Texas in The International Centre for Dispute Resolution. The arbitrator awarded equipment demobilization costs to GII and awarded damages to EnerGulf for property remediation, in arbitration proceedings relating to a contract for seismic data acquisition services. The net result is an award in favour of GII for $161,200 plus interest at the rate of 5% per annum from April 1, 2012. The Company is considering its options regarding the award.
Block 1711, Offshore Namibia: EnerGulf continues to search for qualified potential participants and make data room presentations for Block 1711 as the Government of Namibia works to restructure the interests in the block by seeking a new majority participant. A prospective resource report for Block 1711 was prepared covering four prospects and nine leads. The report includes a mean estimate of 3,166,000,000 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. EnerGulf currently has a 15% working interest in Block 1711. The next proposed work program calls for a 3D seismic program in the southern part of the block with a follow up well.
2013 Annual General Meeting:
EnerGulf also reports that it has set the date for its 2013 Annual General Meeting at August 15, 2013. Management does not contemplate that it will be proposing any special business at the Meeting.
On Behalf of the Board of Directors of ENERGULF RESOURCES INC.
Jeffrey L. Greenblum
Chairman & CEO