EnerGulf Resources Inc. reported that the project operator, Sintezneftegaz Namibia Ltd., has advised that drilling has commenced on the Kunene #1 well on Block 1711 offshore Namibia. Sintezneftegaz contracted the drillship Deep Venture on behalf of itself and the other co-venturers on Block 1711 (EnerGulf, PetroSA and NAMCOR) to drill the Kunene #1 well.
The costs to drill this well to the targeted total depth of 4,400 meters below sea level, are estimated to be approximately US$79 million and an additional approximate US $9 million, if decided by the co-venturers to penetrate deeper objectives, of up to 5,500 meters below sea level. The drilling time is estimated to be approximately 50-60 days to 4,400 meters and an additional approximate 10 days to 5,500 meters. EnerGulf has a 10% interest in Block 1711 and is responsible for 10% of the costs.
Block 1711 is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola. The two separate exploration prospects, the Kunene and Hartmann, have been identified by extensive modern seismic data on the 893,100 hectare (2.2 million acre) block. Based on a Prospective Resource Assessment provided by Netherland Sewell & Associates, Inc., the co-venturers are targeting a potential multi-billion barrel oil and gas resource on Block 1711.
Commenting for EnerGulf, Chairman of the Board and CEO, Jeff Greenblum said, "We are very pleased to announce the commencement of drilling on Block 1711 in the Republic of Namibia. Our evaluation of Block 1711 indicates the potential for a world class hydrocarbon reservoir. At this time of historic energy prices, we look forward to the results of this initial test well. Our capital structure allows us the flexibility to drill the Kunene #1, as we initiate our exploration program for the Lotshi Block in the Democratic Republic of Congo."
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