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

The Block 1711 Joint Operating Committee, comprised of Sintezneftegaz of Moscow; PetroSA, the national petroleum company of South Africa; NAMCOR, the national petroleum company of Namibia; and EnerGulf, has held regular meetings in both Windhoek, Namibia and Moscow and has established procedures for awarding of the various contracts required for the ongoing work program.

Under the criteria established by the Joint Operating Committee, three contracts have been awarded to date from bids made by multiple qualified companies. The contract for the reprocessing and reinterpretation of 2D and 3D seismic data to further confirm the optimal drilling location on the prospect for the Kunene #1 identified by 3D data, as required by the Production Sharing Contract ("PSC") with the Government of Namibia, has been awarded to WesternGeco (Schlumberger).

The contract for developing the Drilling Program and engineering monitoring for the Kunene #1 exploratory well construction has been awarded to Halliburton. Drilling is scheduled to commence by March 2008.

The contract for the Environmental Impact Assessment for scheduled drilling operations on Block 1711 required by the PSC has been awarded to Risk-Based Solutions of Namibia.

Negotiations regarding the awarding of the well construction management and the drilling contract are currently underway with companies that should secure proposals for rig availability, and a drilling rig that appears to be available for drilling the Kunene #1 has been identified.

Block 1711 is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola. Two separate exploration prospects have been identified by extensive modern seismic data on the 8,931-square-kilometre block, being the Kunene and Hartmann prospects. There are other undeveloped leads.