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EnerGulf Resources Inc. is pleased to provide an update on the Lotshi Block located onshore in the Democratic Republic of Congo (DRC).
Following the completion of the Company’s 2-D seismic program in late October 2010 and the first phase of mapping, EnerGulf’s preliminary interpretation of the data indicates multiple prospects and drill targets located in the pre-salt Chela, Bucomazi and Lucula formations.
To obtain a more complete understanding of the subsurface and develop optimal drilling locations, the seismic data is being integrated with state of the art high-resolution gravity, aeromagnetic, radiomagnetic, and satellite-borne Thematic Mapper and Shuttle Radar Topography data. Initial interpretation of the available data suggests to management that potential hydrocarbon structures on the block are larger than previously thought.
DeGolyer and MacNaughton of Dallas, Texas has been engaged to provide an estimation of the prospective hydrocarbon resources in each of the drill sites being considered. The report should be completed in late April, 2011.
The prospective resources estimates will be prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook, and in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), and to conform to the definitions and guidelines of the 2007 Petroleum Resources Management System (PRMS). DeGolyer and MacNaughton is an international petroleum-consulting firm that specializes in evaluation of reserves and resources for major and independent oil and gas companies, governments, financial institutions and the investment industry.
EnerGulf is also pleased to confirm that plans to conduct a 3 well drill program on the Lotshi Block in late summer 2011 are still on schedule. To assist in leading the drilling operations, EnerGulf has added Mr. Andy Bagot of Figure 3 Oil & Gas LLC as a consultant for drilling management and coordination. Mr. Bagot’s 30 years in the oil and gas industry has provided him with vast experience in both domestic and international drilling and production operations. Mr. Bagot has held senior positions with, Goodrich Petroleum, Peoples Energy and Bridas Energy. He started his career at Phibro Energy and The Superior Oil Company.
To further facilitate a successful program, the Company has contracted the drilling project management firm, JWE (UK) Limited. JWE is staffed with drilling professionals experienced in Congo, and other frontier areas. Established in 1999, JWE has project managed the drilling of over 100 wells in 20 countries. Founder and Managing Director Richard Gray has 30 years experience having formally held senior positions with Amoco, Sun Oil, LASMO, Premier Oil and Burren Energy (an original founder of the M’Boundi field).
The Lotshi Block covers approximately 500 square km of the Les Zones du Bassin Côtier in the onshore coastal salt basin of western DRC. EnerGulf is the operator of the project and has a 90% interest. The Block is contiguous to Cabinda, Angola and is on trend with the M’Boundi giant field in Republic of Congo and situated in a similar geological setting. The Lotshi Block is also in relatively close proximity to the offshore Cabinda, Malongo and Takula giant field complexes operated by Chevron and the onshore and offshore Perinco fields in DRC.
Commenting for EnerGulf, Chairman and CEO, Jeff Greenblum, said, “We are very pleased that all our hard work and investment involved in the Lotshi Block’s seismic operations has yielded exciting prospects and drill targets. Our quest to obtain high impact oil and gas production results is progressing to the home stretch as we advance towards commencing the drilling program on our Lotshi property”.
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