EnerGulf will have a 10-percent working interest and a 9.5-percent net revenue interest in the block. The operator of the block is Sintezneftegaz (70 percent working interest). Other partners in the block include PetroSA (10 percent working), Namibian state-run company NAMCOR (7 percent) and the local BEE group (3 percent). Sintezneftegaz will be solely responsible for carrying the NAMCOR and BEE group's interests.
The exploration license granted is for a term of four years, with two additional two-year renewal exploration periods. The minimum exploration expenditure over the initial four-year period is US$84 million and a further US$37 million combined over both two-year renewal periods.
Block 1711 is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola.
"Block 1711 contains the most attractive undrilled structure that I have seen in over 40 years of exploring for oil and gas internationally," said Bill St. John, EnerGulf's advisor for African and other international operations. "In my opinion, each of the Kunene and the Hartmann prospects are of a sufficient size to have the potential to contain a 'giant field,' being over 500 million barrels (as defined by AAPG)".
"We are delighted after over a year of extensive analysis and negotiations, to announce the formal signing of the Petroleum Exploration License for Block 1711 and to be positioned in Namibia," added Jeff Greenblum, EnerGulf's chairman. "We believe Block 1711 has the geological earmarks to potentially hold a world class hydrocarbon resource."
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