EnerGulf plans first Namibian well by fall 2008

EnerGulf Resources Inc., Houston, plans to drill Kunene No. 1 exploration well on Block 1711 off Namibia by Oct. 31, 2008.

Uchenna Izundu
International Editor

LONDON, June 25 -- EnerGulf Resources Inc., Houston, plans to drill Kunene No. 1 exploration well on Block 1711 off Namibia by Oct. 31, 2008. Namibian authorities have extended the company's 2007-08 work program by another 6 months, which will give EnerGulf more time to negotiate better terms with contractors and vendors.

"While the extension provides an extra 6 months to fulfill the first exploration and drilling phase requirements, we hope to drill as soon as possible," EnerGulf said. The company said its initial 4-year exploration period will expire Mar. 31, 2010.

The Kunene well will reach a TD of 3,625 m in 900 m of water. The reservoir is thought to consist of a large, probably Cretaceous, structure that appears to be a carbonate buildup sealed by a thick Tertiary shale sequence. The structure forms a four-way dip closure covering 95 sq km, with 675-1,400 m of vertical closure (OGJ Online, Mar. 10, 2005).

According to a prospective resource assessment by Netherland, Sewell & Associates Inc, Kunene is estimated to have 454 million bbl of oil and 445 billion cu ft of gas. EnerGulf holds a 10% interest in Block 1711.

Halliburton is developing the drilling program and engineering monitoring, and WesternGeco (Schlumberger) is reprocessing and reinterpreting 2D and 3D seismic data. Risk Based Solutions of Namibia is carrying out the environmental impact assessment. The minimum exploration expenditure over the initial 4-year period is $84 million, with a further $37 million combined over both 2-year renewal periods.
Block 1711 is in the Namibe basin off the northern coast of Namibia along the international boundary with Angola.

Contact Uchenna Izundu at uchennai@pennwell.com.

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