EnerGulf Provides update on Lotshi Block, Congo

EnerGulf Resources Inc. EnerGulf is pleased to provide updates on the Lotshi Block onshore in the Democratic Republic of Congo (DRC). Lotshi Block - The Company had previously announced it had entered into a contract with China National Administration of Research Institute of Coal Geophysical Exploration (CGE) to conduct a seismic acquisition program of the Lotshi Block to further define the prospectivity of the block and to identify optimal drill targets, and that preparatory work to prepare for the survey was underway. CGE has been delayed in commencing operations on schedule. EnerGulf is in negotiations to contract with other seismic companies, as it is assumed CGE is not able to fulfill its obligations.

EnerGulf has achieved the following milestones concerning its Lotshi Block work program: Completed its Environmental Impact Study required for operations on the block; has organized its office and operations in the field to conduct the seismic program; has secured various necessary equipment for the operation; performed dynamite testing; identified its base camp; completed its demining assessment; surveyed the true boundaries of the block and gained government approval; received its Exploration Permit from the government; reprocessed over 300 sq. km of existing 2D seismic data utilizing state of the art processing; planned the lines for the seismic program; acquired an aeromagnetic and gravity survey of the block and has begun a more detailed and state of the art evaluation and enhancement of those surveys; conducted various meetings to coordinate with the local authorities and population.

The Lotshi Block covers approximately 500 square km of the Les Zones du Bassin Côtier in the onshore coastal salt basin of western DRC. EnerGulf is the operator of the project. The Block is contiguous to Cabinda, Angola and is on trend with the M’Boundi giant field in Republic of Congo and situated in a similar geological setting. The Lotshi Block is also in relatively close proximity to the offshore Cabinda, Malongo and Takula giant field complexes operated by Chevron and the onshore and offshore Perinco fields in DRC.