EnerGulf Contracts GII for Seismic over Lotshi Block

EnerGulf has signed a contract with The Geophysical Institute of Israel (GII) to conduct the upcoming 2D seismic acquisition program on its Lotshi Block located onshore in the Democratic Republic of Congo (DRC). GII will immediately prepare for mobilization to the block and plans to complete the high quality seismic survey in July, 2010. The survey is designed to further define the prospectivity of the block and to identify optimal drill targets. The contract with GII replaces the contract with CGE referenced in the Company's news release of January 13, 2010.

GII has conducted oil and gas seismic surveys in over 7 countries since 1997. GII has conducted three 2D and/or 3D seismic surveys since 2005 for ROC Oil Company Ltd. on its Cabinda South Block in Angola, immediately contiguous to the Lotshi Block on the Lotshi Block's western boundary. ROC announced on February 18, 2010, that its Castanha-1 well had struck light oil over 15 gross metres below a depth of 2214 metres in the Chela formation on the Cabinda South Block.

The Lotshi Block covers approximately 475 square km of the Les Zones du Bassin Cotier 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.

EnerGulf has achieved the following milestones concerning its Lotshi Block work program:

  • completed its Environmental Impact Study required for operations on the block
  • 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
  • acquired an aeromagnetic and gravity survey of the block and will begin a more detailed and state of the art evaluation and enhancement of those surveys
  • 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
  • planned the lines for the seismic program
  • conducted meetings to coordinate with the local authorities and population

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