Namibia - EnerGulf Resources Inc. has been offered a 17% interest in offshore Block 1711 by the Ministry of Mines and Energy of Namibia. PetroSA has been offered a 70% interest, along with being operator will carry Namcor for 10% and local BEE group(s) for 3%. Since the offer was made, the parties have been conducting various due diligence and putting the finishing touches on the Exploration License. EnerGulf anticipates the formal signing ceremony for Block 1711’s Exploration License in the first quarter of 2006.
Congo - EnerGulf’s wholly owned subsidiary, EnerGulf Africa Ltd. was granted an oil and gas PSC covering the Lotshi Block (420 sq. km) in the Congo Salt Basin, onshore, Congo. Per the terms of the PSC, and after Presidential decree, EnerGulf will pay a signature bonus of US$500,000 for a 90% interest in the PSC and will provide a letter of credit of US$500,000 toward its work program. EnerGulf will be the operator of the Block and will carry Cohydro, the parastatal oil company, for a 10% interest. EnerGulf has also been informed by the Ministry of Energy, that it will be granted and/or participate in additional blocks and is continuing to negotiate for further interests in the area. Preliminary technical work needed to commence the work program is currently ongoing.
Nigeria - EnerGulf is in discussions with various parties, including the government of Nigeria, concerning the terms commensurate with signing OPL 252’s PSC. The EnerGulf (60%)/Derock (40%) JV has been informed that January 30, 2006 is currently the deadline to satisfy the US$81 million signature bonus. EnerGulf, as technical partner of the JV, is conducting a technical review and is developing estimates of the hydrocarbon potential of the block.
Tanzania - EnerGulf has submitted its proposed PSA to the Tanzania Petroleum Development Commission (TPDC) and is awaiting an official reply. EnerGulf has made a fair and reasonable offer as to the proposed work program in the submitted PSA. If TPDC has not agreed to the offer by December 31, 2005, EnerGulf will reassess the Tanga Block’s potential and importance to EnerGulf’s overall business plan and determine what further course of action to take.
