EnerGulf Announces Carried Interest and Joint Operating

EnerGulf Resources Inc. is pleased to announce a Strategic Exploration Agreement between Gazania 148 Investments (Pty) Ltd (“Gazania”) and EnerGulf Namibia Ltd (“EnerGulf”), a wholly owned subsidiary of the Company, for Offshore Block 1711, Republic of Namibia (“Block 1711”).  The Agreement includes a negotiated Joint Operating Agreement (“JOA”) for Block 1711 which has been submitted to the Ministry of Mines and Energy and NAMCOR (National Oil Company of Namibia) for review and approval.  The Petroleum Agreement grants EnerGulf a 15% working interest, Gazania a 75% working interest, and NAMCOR a 10% carried working interest to production.

The Agreement strengthens the relationship with Gazania, optimizes the exploration potential of Block 1711, and ensures cost containment for EnerGulf.  The Agreement provides:

John D. Elmore, President of EnerGulf, states “The Strategic Exploration Agreement and Operating Agreement provide no direct costs to EnerGulf for a high quality geological and geophysical program for Block 1711 that is expected to cost between $25 and $40 million.  The Agreement also provides for enhanced marketing opportunities under its joint marketing terms.  EnerGulf is excited to work with Gazania and expeditiously move the Block 1711 program forward and to its successful development, especially as Repsol and its partners are currently drilling a well on Block 1911 offshore Namibia, two blocks due south of Block 1711.”