EnerGulf Resources Inc.
TSX VENTURE : ENG
FRANKFURT : EKS

EnerGulf Resources Inc.

July 22, 2009 14:10 ET

EnerGulf Resources Inc.: Namibia Block 1711 Update

HOUSTON, TEXAS--(Marketwire - July 22, 2009) - EnerGulf Resources Inc. (TSX VENTURE:ENG)(FRANKFURT:EKS) ("EnerGulf"): EnerGulf reports that the Ministry of Mines and Energy of Namibia has released a Press Statement dated July 21, 2009 regarding Block 1711. The statement is as follows:

"In March 2006, Sintezneftegaz (70%) together with its co-venturers EnerGulf Resources Inc (10%), PetroSA (10%) and Namcor (7% carried interest) signed a Petroleum Agreement with the Government of the Republic of Namibia in connection with the exploration of oil and gas in block 1711. A local BEE group, Kunene Energy joined later with a 3% carried interest. The License Block is located in the northern part of the Namibian continental shelf and is part of Kwanza-Cameroon oil and gas bearing province. In the northern part of the province namely in northern and central basins of Angola (Cabinda, Kwanza) the proven oil and gas bearing reserves capacity are contained in the carbonate sediments of Albian age. The oil fields of Pakassa Formation in the lower Congo basin and Bento Formation in the Kwanza basin were chosen and used as analogues of the Cretaceous carbonate reservoirs. Furthermore additional seismic reinterpretation and reprocessing over the Kunene and Hartman prospects have demonstrated that both these structures can be correlated with the Apto-Albian sediments of the South West African margin.

The operator and the co-venturers applied extreme effort and dedication to the evaluation of oil and gas in the license block. The site for the Kunene-1 exploratory well was determined on the basis of the reprocessed and reinterpreted 2000 km of 2D seismic and 685km2 of 3D seismic data that was originally acquired by Vanco. The well was spudded in June 2008 and drilled to a total depth 5052 meters below mean sea level as per the Agreement with the Namibian Government. The Kunene-1 well is the first ever well to be drilled in Block 1711 over the Kunene prospect of the Namibe basin, testing a large 4 way dip structural closure.

The geological analysis of the drilling results, indicate the oil and gas potential of Block 1711 as well as good prospects for the region as a whole. There were gas shows in the Albian and Aptian sediments, confirmed by wire-line logging. It was not possible to fully evaluate the hydrocarbon potential of the penetrated section due to operational problems during testing. The reservoir quality of the tested zones was not very good, perhaps due to nearby igneous activity. However, seismic interpretation suggests that alteration of the sediments by the igneous activity may be localized to an area near the borehole, and therefore both the tested zones and some untested zones have great potential. PetroAlliance Service Co. of Moscow, a subsidiary of Schlumberger, estimates that the 4,698m - 4,748m interval could contain a potential gas resource of up to 14 trillion cubic feet.

All in all, the Government of the Republic of Namibia is happy to announce that Sintezneftegaz Namibia and its co-venturers have met their minimum work commitments to it under this license under often very difficult conditions. The global financial meltdown of last year negatively affected exploration efforts, however it is anticipated, that exploration activities will continue with the view to establish more accurately the quantities and commerciality of the hydrocarbons in block 1711."

As previously reported, EnerGulf elected not to participate in the testing program of the 4,698m to 4,748 interval. EnerGulf is not in receipt of a copy of the PetroAlliance report mentioned in the press statement and it has not verified the potential resource and the estimate may not be compliant with NI 51-101. Although EnerGulf elected not to participate in the testing of the interval, per the Joint Operating Agreement, the Company 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 re-instate its pro rata rights in a commercial discovery in the interval that was tested.

EnerGulf reported on the completion of drilling activities, that the Kunene #1 well had significant hydrocarbon shows and believes the results of the operations prior to the attempted well test enhanced the prospectivity of Block 1711 by demonstrating that hydrocarbons are present. EnerGulf looks forward to continuing in the exploration program of the block.

EnerGulf Resources Inc. is a publicly traded international oil and gas exploration company focused on maximizing shareholder value by targeting high impact opportunities in the world's most prospective hydrocarbon regions.

On Behalf of the Board of Directors of EnerGulf Resources Inc.

Jeff Greenblum, Chairman and CEO

Certain disclosure in this release constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to EnerGulf's operations as an oil and gas exploration company that may cause future results to differ materially from those expressed or implied by those forward-looking statements and readers are cautioned not to place undue reliance on these statements. EnerGulf disclaims any intentions or obligations to update or revise any forward looking statements whether as a result of new information, future events, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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