February 21, 2012 For Immediate Dissemination
EnerGulf Resources Releases New Prospective Resource Estimates for Block 1711 Offshore Namibia with a Mean Estimate of 3.166 Billion Barrels of Oil (EnerGulf Gross Net 474.9 Million Barrels)DALLAS, TEXAS (February 21,
2012), EnerGulf Resources Inc. (TSX-V: ENG; FSE: EKS) ("the
Company") is pleased to announce the Company has
received a prospective oil resources report for four
prospects and nine leads on 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. ("NSAI") of Dallas,
Texas (www.netherlandsewell.com). The report was
prepared as of December 31, 2011, and will be available on
SEDAR (www.sedar.com) and
on the EnerGulf website (www.energulf.com).
NSAI estimates the unrisked gross (100 percent) prospective
oil resources for the prospects and leads as of December 31,
2011, to be:
Gross (100%) Unrisked Prospective Oil Resources (MMbbl)
Low Estimate | Best Estimate | High Estimate | Mean | |
Total | 742 | 2,749 | 6,108 | 3,166 |
The estimates in this report have been prepared in accordance
with the definitions and guidelines set forth in Canadian
National Instrument 51-101 Standards of Disclosure for Oil
and Gas Activities and Section 5 of Volume 1, Second Edition,
of the Canadian Oil and Gas Evaluation Handbook (COGEH),
prepared jointly by the Society of Petroleum Evaluation
Engineers (Calgary Chapter) and the Canadian Institute of
Mining, Metallurgy & Petroleum (Petroleum Society) (the
latter of which is now the Petroleum Society of Canada).
Please also see footnote below.
The following table reports the results from the NSAI report
by individual prospect or lead.
Play Type/ Prospect/Lead | Unrisked Gross (100 Percent) Prospective Oil Resources (MMbbl) | |||
Play Type/ Prospect/Lead | Low Estimate | Best Estimate | High Estimate | Mean(1) |
Paleocene-Eocene Turbidites | ||||
Hartmann Prospect | 175 | 655 | 1,363 | 729 |
Ondangwa Prospect | 60 | 203 | 411 | 223 |
Entanga Lead | 160 | 610 | 1,319 | 688 |
Lead C | 45 | 157 | 326 | 175 |
Lead J | 68 | 226 | 468 | 252 |
Early Cretaceous Synrift Sandstones | ||||
Kunene Deep Prospect | 21 | 85 | 203 | 102 |
Kunene South Prospect | 48 | 189 | 455 | 227 |
Lead F | 41 | 164 | 383 | 193 |
Lead K | 42 | 148 | 338 | 174 |
Precambrian-Paleozoic Basement | ||||
Kunene Deep Lead | 19 | 74 | 209 | 99 |
Lead G | 8 | 33 | 87 | 42 |
Pangea Lead | 36 | 141 | 371 | 178 |
Rodinia Lead | 17 | 65 | 174 | 84 |
Total(2) | 742 | 2,749 | 6,108 | 3,166 |
(1) In accordance with the COGEH, NSAI have reported the low, best, and high estimates for each prospect and lead. As requested, NSAI have also included mean estimates for each prospect and lead
(2) Totals are the arithmetic sum of multiple probability distributions and may not add because of rounding.
Block 1711 comprises 2.2 million acres (8,900 square km) and
is situated in the Namibe basin off the northern coast of
Namibia along the international boundary with Angola. The co-
venturers in Block 1711 are currently EnerGulf 15% (with a
possible additional 4%), PetroSA
10%, NAKOR 10% (carried), NAMCOR 7% (carried), HRT 2.7%, and
Kunene Energy 0.3% (carried). EnerGulf has been granted the
authority to market and negotiate the terms for the remaining
51% to 55% interest in Block 1711 with potential qualified
industry participants with the consent of the Namibian
Ministry of Mines and Energy. EnerGulf will continue as the
interim Operator under the Joint Operating Agreement
(EnerGulf News Release October 12, 2011).
EnerGulf's extensive work program has determined that Block
1711 contains at least five Paleocene-Eocene turbidite sand
prospects and leads. They comprise a current mean recoverable
resource estimate per the NSAI report of more than 2 Billion
barrels. This play was not considered for Block 1711 before
the Kunene #1 well was drilled, but biostratigraphic
information from the well suggested its importance. NSAI's
High Estimates for these prospects
and leads, totaling 4 billion barrels is in line with similar
turbidite fields of the same age in the Campos Basin of
Brazil. Other Giant (>500 million barrels) deepwater
turbidite sand analogs for this play exist in the deepwater
play off Angola, north of Block 1711, as well as elsewhere in
West Africa, and the Gulf of Mexico.
Further, it has been recognized for some time that the
Syn-Rift play in Block 1711 is geologically similar to the
Pre-Salt plays in the Santos Basin of Brazil and in the Upper
Congo Basin of West Africa, including EnerGulf's Lotshi Block
in DRC. The Kunene #1 well penetrated the uppermost 200
meters of the Syn-Rift section, and although no commercial
reservoir zones were found, the section was thermally mature
and a significant show of heavy gas was noted just above the
top of the zone. NSAI's High resource estimate of more than a
billion barrels for
4 prospects and leads in this play hints at the promise it
presents.
In addition to the Turbidite and Syn-Rift plays, each of
which have many Giant (<500 million barrels recoverable)
oil field analogs in West Africa and Brazil, the company has
identified a new play involving huge structures in Basement
rocks. This play has been recognized throughout West Africa
and Brazil, and although there are no nearby Giant fields in
this play, further study of the existing leads on Block 1711
could lead to a significant increase in the Block's
resources.
EnerGulf also continues with plans for a mid 2012 drill
program on its 500 square km Lotshi Block located in the
onshore coastal salt basin of western DRC. EnerGulf recently
reported the receipt of an assessment of the Prospective
Resources on EnerGulf's Lotshi Block with a mean estimate of
313 million barrels for the potentially recoverable oil on
seven oil prospects on the Lotshi Block. The report was
prepared by DeGolyer and MacNaughton (D&M), an independent
international petroleum consulting firm located in Dallas,
Texas (www.demac.com) and
is available on SEDAR (www.sedar.com) and on the
Company's website (www.energulf.com). EnerGulf is the
operator of the project and has a 90% interest and COHYDRO,
the state oil company of the DRC, holds a 10% carried
interest.
Jeff Greenblum, Chairman and CEO for EnerGulf states, "We are
pleased to publicly demonstrate the breadth and depth of the
prospect portfolio as it currently stands. The report by NSAI
validates the work EnerGulf has done since taking over as
operator of Block 1711. Our analysis of the information
obtained during the drilling of the Kunene #1 well served as
a catalyst for developing several new prospects and leads, as
well as a complete re-evaluation of the existing prospect
portfolio. We are looking forward to planning our upcoming
3-D seismic acquisition and drill programs, and pursuing
talks with prospective qualified industry co- venturers."
Footnote: Per the NSAI report, "Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. The prospective resources included in this report indicate exploration opportunities and development potential in the event a petroleum discovery is made and should not be construed as reserves or contingent resources. There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources. Entities for which prospective resources have been estimated in this report have been subclassified as prospects and leads. A prospect is defined as a project associated with a potential accumulation that is sufficiently well defined to represent a viable drilling target, and a lead is
defined as a project associated with a potential accumulation that is currently poorly defined and requires more data acquisition and/or evaluation in order to be classified as a prospect. The oil resources shown include crude oil only. Oil volumes are expressed in millions of barrels (MMbbl); a barrel is equivalent to
42 United States gallons.
The prospective resources shown in this report have been estimated using a combination of deterministic and probabilistic methods and are dependent on a petroleum discovery being made. If a discovery is made and development is undertaken, the probability that the recoverable volumes will equal or exceed the unrisked estimated amounts is 90 percent for the low estimate, 50 percent for the best estimate, and 10 percent for the high estimate. As recommended in the COGEH, the low, best, and high estimate prospective resources have been aggregated beyond the prospect and lead level by arithmetic summation; therefore, these totals do not include the portfolio effect that might result from statistical aggregation. Note that these distributions do not include consideration of the probability of success of discovering and producing commercial quantities of oil, but rather represent the likely distribution of the oil deposits, if discovered."
On behalf of the Board of Directors,
EnerGulf Resources Inc."Jeff Greenblum"
Jeffrey L. Greenblum, Chairman & CEO
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.
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.
For more information, please contact:
Jonathan Buick The Buick Group Tel: (416) 915-0915
Email: jbuick@buickgroup.com
EnerGulf Resources Inc.4005 - 1011 West Cordova Street, Vancouver, British
Columbia V6C 0B2
Telephone: (604) 408-1990 Fax: (604) 608-4822
www.energulf.com info@energulf.com
Ben Curry
Progressive Investor Relations
Tel: (604) 689-2881
Email: info@energulf.com
Website: www.energulf.com