EnerGulf Resources Inc. announced that the Ministry of Mines and Energy of Namibia has notified EnerGulf that it is offered a 17% interest in Block 1711 offshore Namibia exploration license. The exploration license for Block 1711 will be issued, upon acceptance of the offer, as per the following interests: PetroSA 70% and operator, EnerGulf 17%, Namcor 10% (the Namibian parastatal petroleum company) and local BEE group(s) 3%. Under the terms of the offer, PetroSA will be solely responsible for carrying Namcor and the local BEE group(s) during the exploration phase.
The minimum exploration work required by the Ministry, as stated in its offer, is a detailed technical review, seismic reprocessing and site surveys, with a minimum exploration expenditure of US $700,000. Upon acceptance of the offer, EnerGulf's financial commitment is 17% of such amount and all exploration and development costs thereafter. The Ministry’s letter includes an invitation to the parties to the exploration license signing ceremony scheduled for November 17, 2005.
Block 1711 lies on the international boundary with Angola and has two defined hydrocarbon exploration prospects, the Kunene and Hartmann, identified by extensive 3D and 2D seismic data on the 8,931 sq. km Block.
