EnerGulf Corporate Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/27/12 -- EnerGulf Resources Inc. (TSX VENTURE: ENG)(FRANKFURT: 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.
Corporate Update
The Company continues with its efforts to develop its African assets. Over the past twelve months the Company has:
Block 1711
-- 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 1711with
qualified industry potential participants, on behalf of the Government
of Namibia.
Lotshi Block
-- 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
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 the 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:
The Buick Group
Jonathan Buick
(416) 915-0915
jbuick@buickgroup.com
Progressive Investor Relations
Ben Curry
(6040 689-2881
EnerGulf Resources Inc.
(604) 408-1990
(604) 608-4822 (FAX)
info@energulf.com
www.energulf.com
