EnerGulf Reports Drilling Operations Completed on Kunene #1
10:06 EDT Wednesday, August 06, 2008
HOUSTON, TEXAS--(Marketwire - Aug. 6, 2008) - EnerGulf Resources Inc. ("EnerGulf") (TSX VENTURE:ENG)(FRANKFURT:EKS) EnerGulf reports that drilling and logging operations on the Kunene #1 have been completed. The well had significant hydrocarbon shows. EnerGulf believes the results of the operations to date have enhanced the prospectivity of Block 1711 by demonstrating that hydrocarbons are present. At this date we believe that this first well ever drilled in the Namibe Basin south of Angola, will probably not be a commercial producer. However, Sintezneftegaz Nambia Ltd. has determined to test the well for natural gas in a particular zone. The test is estimated to take an additional 16 days. EnerGulf has elected not to participate in this operation. EnerGulf believes the Kunene well information will allow EnerGulf to evaluate existing prospects and identify new leads and prospects on the block.
Although, EnerGulf has elected not to participate in the testing of the well, per the Joint Operating Agreement, EnerGulf 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 being tested.
Energulf is pleased to report, the Petroleum Agreement between the Government of Namibia and the parties has been amended, to reflect that the parties have been relieved from performing all other minimum exploration work obligations required over the Initial Exploration Period, including the minimum exploration expenditure and the requirement to drill a second well, because per the agreement, the Kunene #1 well drilled below the original planned depth of 4,400 meters (Albian/Aptian stage in geological time) to a depth of 5,050 meters below sea level and tested the syn-rift (Barremian stage in geological time).
Energulf is also pleased to announce, that it has engaged the firm, Petrophysical Solutions Inc.(PSI), of Houston, Texas, as consultants (to further compliment its other geophysical consultants), primarily to provide expert oil and gas electric log analysis and rock and fluid interpretation for the Kunene #1, and guidance for Energulf's Block 1711 and Lotshi Block exploration programs.
The Republic of Namibia has classified the Kunene #1 as a "tight hole", meaning no information regarding the well may be released until such time as the Namibian government determines to make the information public.
Jeff Greenblum EnerGulf Chairman of the Board and CEO states "We are proud of the team effort in drilling this historical deep offshore Namibia/Africa, Kunene #1 well, led by our operator Sintezneftegaz Namibia Ltd. The Government of Namibia through its Ministry of Mines and Energy and NAMCOR provided critical cooperation and coordination in this immense undertaking. Our drilling operation took much longer than expected due to tough weather and downhole conditions, but we persevered. The data obtained through the drilling and logging of the well provides exciting encouragement to continue our exploration program of the block. We also would like to thank our rig crew, technical support staff, equipment and service providers, and drill ship contractor, for their contributions to the effort. We are looking forward to aggressively pursuing our Block 1711 and DRC Lotshi Block exploration activities and other opportunities of interest".
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, COB/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.
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