Energulf Spuds Prado #1 Well in Colombia

Energulf Resources has begun drilling the Prado #1 Exploration well on the company's Alborada Block in Colombia, South America on October 13, 2003. The Prado #1 will be drilled to a depth of 3000 feet to test a seismic defined structure at the La Tabla formation. The Alborada Block is located in an area that has generated significant volumes of oil. To the north, the Alborada contract area is contiguous to the Boqueron Block, which is operated by Braspetrol and is the site of the Guando Field, a La Tabla discovery announced by Braspetrol, Nexen and Ecopetrol in June 2000.

As announced on June 20, 2000, Alberto Calderon, president of Ecopetrol, the state owned oil company of Colombia, stated that the Guando Field may contain more than 200 million barrels of oil. Nexen, Inc. has stated that "...Preliminary estimates indicate original oil in place of about 1.4 billion barrels of 30 degree API sweet crude oil." The Espinal Fields, five kilometers west of Alborada, currently produce approximately 12,000 barrels per day into the Upper Magdalena Valley pipeline system, also from the La Tabla formation. The Caballos sandstone, another seismic defined prospect on the Alborada Block that the company plans to test with another well to be drilled at a future date, is the major producing interval in the San Francisco Field to the Southwest of Alborada.

Energulf holds a 25% working interest in the Alborada Block which is operated by privately held Gulfsands Petroleum Ltd. of Houston, Texas.