EnerGulf Resources Inc.

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EnerGulf Announces Carried Interest and Joint Operating

TORONTO, ON (June 12, 2014), EnerGulf Resources Inc. (TSX-V: ENG; FSE:EKS) (“the Company”)  is pleased to announce a Strategic Exploration Agreement between Gazania 148 Investments (Pty) Ltd (“Gazania”) and EnerGulf Namibia Ltd (“EnerGulf”), a wholly owned subsidiary of the Company, for Offshore Block 1711, Republic of Namibia (“Block 1711”).  The Agreement includes a negotiated Joint Operating Agreement (“JOA”) for Block 1711 which has been submitted to the Ministry of Mines and Energy and NAMCOR (National Oil Company of Namibia) for review and approval.  The Petroleum Agreement grants EnerGulf a 15% working interest, Gazania a 75% working interest, and NAMCOR a 10% carried working interest to production.

The Agreement strengthens the relationship with Gazania, optimizes the exploration potential of Block 1711, and ensures cost containment for EnerGulf.  The Agreement provides:

John D. Elmore, President of EnerGulf, states “The Strategic Exploration Agreement and Operating Agreement provide no direct costs to EnerGulf for a high quality geological and geophysical program for Block 1711 that is expected to cost between $25 and $40 million.  The Agreement also provides for enhanced marketing opportunities under its joint marketing terms.  EnerGulf is excited to work with Gazania and expeditiously move the Block 1711 program forward and to its successful development, especially as Repsol and its partners are currently drilling a well on Block 1911 offshore Namibia, two blocks due south of Block 1711.”

Block 1711 is an 8,891 square kilometer offshore petroleum concession on the northern border of the Republic of Namibia. Netherland, Sewell & Associates (independent oil and natural gas reservoir engineers) estimates mean gross prospective oil resources for Block 1711 of 3.17 billion barrels of oil.  The full 53-101 report is available on SEDAR (www.sedar.com) and the EnerGulf website (www.energulf.com).

 

About EnerGulf

EnerGulf Resources Inc. is a Toronto, Canada based oil and gas exploration company trading on the Toronto TSX Venture Exchange (TSX-V: ENG) and the Frankfurt Exchange (EKS).  EnerGulf holds a 90% working interest in the Lotshi Block, Onshore Democratic Republic of Congo, which covers approximately 507 square kilometers, and Estimated Mean Gross Prospective Reserves of 313 Million Barrels of Oil Resources.  EnerGulf holds a 15% working interest in Block 1711, Offshore Republic of Namibia, which covers approximately 8,891 square kilometers, and Estimated Mean Gross Prospective Resources of 3.166 Billion Barrels of Oil Resources. These Reports are available on the EnerGulf website (www.energulf.com) and on SEDAR (www.sedar.com).  As per NI 51-101 section 5.9, There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

On Behalf of the Board of Directors of
ENERGULF RESOURCES INC.

John D. Elmore”
John D. Elmore, Director & CEO

Investor Contact
Jonathan Buick
The Buick Group
jbuick@buickgroup.com
416-915-0915

 
 
- EnerGulf Resources Inc.