EnerGulf reports progress offshore Africa

EnerGulf Resources Inc. provides a year-end update on its current projects offshore Africa.

Offshore staff

(Offshore East & West Africa) - Jeff Greenblum, EnerGulf chairman of the board, recently provided an update on the company's current projects offshore Africa

"The year 2005 has been an exciting year for EnerGulf, as we have made incredible progress in pursuing our Pan-African business plan of assembling a strong portfolio of high-impact oil and gas exploration opportunities as well as adding world class talent to our technical team."

EnerGulf has been awarded offshore prospecting license (OPL) 252 in Nigeria.

After entering into MOUs in Namibia, Tanzania and the Democratic Republic of Congo (DRC), the company advanced each of the MOUs to their next level.

Greenblum says, "In Namibia, we have been offered a 17% interest in block 1711, which we accepted; in the DRC, we have been granted a production sharing contract (PSC); in Tanzania, we have submitted a proposed production sharing agreement (PSA)."

Namibia block 1711

EnerGulf 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, and 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 1Q 2006.

Nigeria OPL 252

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%) joint venture (JV) has been informed that Jan. 30, 2006 is currently the deadline to satisfy the $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 Tanga block

EnerGulf has submitted its proposed PSA to the Tanzania Petroleum Development Commission (TPDC) and is awaiting an official reply.

The 8,000 sq km Tanga block has potential for several significant petroleum accumulations.

01/04/06

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