HOUSTON, TEXAS -- (MARKET WIRE) -- 07/22/09 -- EnerGulf Resources
Inc. (TSX VENTURE: ENG)(FRANKFURT: EKS) ("EnerGulf"): EnerGulf
reports that the Ministry of Mines and Energy of Namibia has released
a Press Statement dated July 21, 2009 regarding Block 1711. The
statement is as follows:
"In March 2006, Sintezneftegaz (70%) together with its co-venturers
EnerGulf Resources Inc (10%), PetroSA (10%) and Namcor (7% carried
interest) signed a Petroleum Agreement with the Government of the
Republic of Namibia in connection with the exploration of oil and gas
in block 1711. A local BEE group, Kunene Energy joined later with a
3% carried interest. The License Block is located in the northern
part of the Namibian continental shelf and is part of Kwanza-Cameroon
oil and gas bearing province. In the northern part of the province
namely in northern and central basins of Angola (Cabinda, Kwanza) the
proven oil and gas bearing reserves capacity are contained in the
carbonate sediments of Albian age. The oil fields of Pakassa
Formation in the lower Congo basin and Bento Formation in the Kwanza
basin were chosen and used as analogues of the Cretaceous carbonate
reservoirs. Furthermore additional seismic reinterpretation and
reprocessing over the Kunene and Hartman prospects have demonstrated
that both these structures can be correlated with the Apto-Albian
sediments of the South West African margin.
The operator and the co-venturers applied extreme effort and
dedication to the evaluation of oil and gas in the license block. The
site for the Kunene-1 exploratory well was determined on the basis of
the reprocessed and reinterpreted 2000 km of 2D seismic and 685km2 of
3D seismic data that was originally acquired by Vanco. The well was
spudded in June 2008 and drilled to a total depth 5052 meters below
mean sea level as per the Agreement with the Namibian Government. The
Kunene-1 well is the first ever well to be drilled in Block 1711 over
the Kunene prospect of the Namibe basin, testing a large 4 way dip
structural closure.
The geological analysis of the drilling results, indicate the oil and
gas potential of Block 1711 as well as good prospects for the region
as a whole. There were gas shows in the Albian and Aptian sediments,
confirmed by wire-line logging. It was not possible to fully evaluate
the hydrocarbon potential of the penetrated section due to
operational problems during testing. The reservoir quality of the
tested zones was not very good, perhaps due to nearby igneous
activity. However, seismic interpretation suggests that alteration of
the sediments by the igneous activity may be localized to an area
near the borehole, and therefore both the tested zones and some
untested zones have great potential. PetroAlliance Service Co. of
Moscow, a subsidiary of Schlumberger, estimates that the 4,698m -
4,748m interval could contain a potential gas resource of up to 14
trillion cubic feet.
All in all, the Government of the Republic of Namibia is happy to
announce that Sintezneftegaz Namibia and its co-venturers have met
their minimum work commitments to it under this license under often
very difficult conditions. The global financial meltdown of last year
negatively affected exploration efforts, however it is anticipated,
that exploration activities will continue with the view to establish
more accurately the quantities and commerciality of the hydrocarbons
in block 1711."
As previously reported, EnerGulf elected not to participate in the
testing program of the 4,698m to 4,748 interval. EnerGulf is not in
receipt of a copy of the PetroAlliance report mentioned in the press
statement and it has not verified the potential resource and the
estimate may not be compliant with NI 51-101. Although EnerGulf
elected not to participate in the testing of the interval, per the
Joint Operating Agreement, the Company may elect to pay 100% of its
share of the test's costs it would have incurred had it participated,
and an additional sum of the same amount, to re-instate its pro rata
rights in a commercial discovery in the interval that was tested.
EnerGulf reported on the completion of drilling activities, that the
Kunene #1 well had significant hydrocarbon shows and believes the
results of the operations prior to the attempted well test enhanced
the prospectivity of Block 1711 by demonstrating that hydrocarbons
are present. EnerGulf looks forward to continuing in the exploration
program of the block.
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
Certain disclosure in this release constitute forward-looking
statements that are subject to numerous risks, uncertainties and
other factors relating to EnerGulf's operations as an oil and gas
exploration company that may cause future results to differ
materially from those expressed or implied by those forward-looking
statements and readers are cautioned not to place undue reliance on
these statements. EnerGulf disclaims any intentions or obligations to
update or revise any forward looking statements whether as a result
of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Progressive Investor Relations
Ben Curry
(604) 689-2881
info@energulf.com
www.energulf.com
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
