EnerGulf Resources Inc. provides an operational update on Block 1711, located offshore Republic of Namibia, Africa.

The partners have been advised by letter from the Republic of Namibia, Ministry of Mines and Energy, that the work program for 2007 and 2008 will be extended by 6 months. The drilling of the first exploration well is now required by October 31, 2008. The full exploration period remains the same under the terms of the Exploration License, until March 31, 2010.

The Ministry of Mines and Energy therein expressed its pleasure with the progress of work on the project made so far. EnerGulf expects the extension may result in more favorable terms with the various contractors and vendors with the additional flexibility given to complete the first drilling phase.

Company Chairman Jeff Greenblum commented, “While the extension provides an extra six months to fulfill the first exploration and drilling phase requirements, we hope to drill the Kunene #1 as soon as possible. We appreciate the Ministry’s acknowledgement of the extensive work done so far and are very excited about the continuing progress of the project.”

EnerGulf and its partners recently announced the awarding of important operational contracts to Halliburton for developing the drilling program and engineering monitoring, WesternGeco (Schlumberger) for reprocessing and reinterpretation of 2D and 3D seismic data, and to Risk Based Solutions of Namibia for the Environmental Impact Assessment Study. The minimum exploration expenditure over the initial four year period is US$84,000,000, and a further US$37,000,000 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. 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. (see news release dated September 8, 2006) the partners are targeting a potential multi-billion barrel oil and gas resource on Block 1711.