Thursday, August 7, 2008

Energulf completes drilling operations on Kunene

August 7. (MiningNamibia)-EnerGulf today that drilling and logging operations on the Kunene #1 have been completed. The well had significant hydrocarbon shows. EnerGulf believes the results of
the operations to date have enhanced the prospectivity of Block 1711 by demonstrating that hydrocarbons are present. The company said it believes that the Namibe Basin south of Angola, will probably not be a commercial producer. However, Sintezneftegaz Nambia Ltd, which is a partner of the project has determined to test the well for natural gas in a particular zone.
The test is estimated to take an additional 16 days. EnerGulf has elected not to participate in this operation. EnerGulf believes the Kunene well information will allow EnerGulf to evaluate existing prospects and identify new leads and prospects on the block.
Although, EnerGulf has elected not to participate in the testing of the well, per the Joint
Operating Agreement, EnerGulf may elect to pay 100% of its share of the test’s costs it would have incurred had it participated, and an additional sum of the same amount, to reinstate its pro rata rights in a commercial discovery in the interval being tested.

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