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[ModestKat]

Namibia: Govt to Restructure Interest in Block 1711
20 May 2013


INTERNATIONAL oil and gas exploration company, EnerGulf Resources is searching for qualified potential participants as the Namibian government is in the process to restructure the interests in its operations at Block 1711.

Block 1711 is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola.

In a corporate update issued on Friday, EnerGulf Chairman and Chief Executive Officer Jeffrey Greenblum said the company is making data room presentations for Block 1711.

“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. The restructuring of the interests by the government is intended to accelerate the exploration efforts on the block,” he explained.

The co-venturers interests are now: EnerGulf 15 percent, PetroSA 10 per cent, the National Petroleum Corporation of Namibia (Namcor) seven per cent, Kunene Energy 0,3 percent, and HRT 2,7 percent. The remaining interest is to be negotiated with leading industry participants.

EnerGulf has been granted the authority to market and negotiate terms for the remaining interests with potential qualified industry participants with the consent of the Ministry of Mines and Energy.

Greenblum said EnerGulf will continue as the interim operator under the joint operating agreement.

A prospective resource report for Block 1711 was prepared covering four prospects and nine leads. Greenblum said the report included an estimate of more than three billion barrels of potentially recoverable oil.

The next proposed work calls for a 3D seismic programme in the southern part of the block with a follow-up well.

3D seismic interpretation is a form of seismic interpretation which relies on the use of 3D surveys, which provide visualisations of structures in three dimension.

It is estimated that the next phase of work programme on Block 1711 could cost between US$12 million and US$15 million (about N$113 million and N$141 million).

EnerGulf Resources is a publicly traded international oil and gas exploration company focused on maximising shareholder value by targeting high impact opportunities for acquisition and development in the world's most prospective hydrocarbon regions.

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