EnerGulf enters six-prospect GoM LOI

Vancouver-based EnerGulf Resources entered into a letter of intent (LOI) with Houston-based Texas South Energy, to participate in six offshore Gulf of Mexico (GoM) prospects owned and operated by GulfSlope Energy.

GoM operations. Image from GulfSlope.

Subject to the execution of definitive agreements, the LOI provides for EnerGulf’s participation in drilling one well on Block 378, Vermilion Area, South Addition (Canoe Prospect), and a second well on either the Canoe Prospect or Block 375, Vermilion Area, South Addition (Selectron Shallow Prospect).

The company has made a US$200,000 payment for its interest in the Canoe Prospect. On 27 June, EnerGulf will pay an additional $200,000 for its interest in the Selectron Shallow Prospect. Upon payment, the company will own a 43.75% non-operated working interest and will have certain cost interest obligations in the Canoe and Selectron Shallow prospects.

The LOI also provides for the payment of $400,000 on 27 June 27 for the acquisition of an undivided 25% non-operated working interest in the following sub salt prospects: Block 870, Ewing Bank and Block 914, Ewing Bank (Alpha Prospect); Block 904, Ewing Bank and Block 948, Ewing Bank (Beta Prospect); Block 348, Ship Shoal, South Addition (Baryon Prospect); and Block 371, Eugene Island, South Addition (Proton Prospect). All blocks are operated by Houston-based GulfSlope.

As additional consideration, EnerGulf has agreed as a term of the definitive agreement to issue to Texas South a warrant to purchase up to 7,000,000 common shares of EnerGulf exercisable for a three-year term at a price of about $0.05 (CDN$0.06) per share.

In addition to the GoM, EnerGulf has been issued a production sharing agreement (PSA) for Block 8 in the Republic of Albania.

The company will evaluate the optimal development strategy for the Block. Block 8 is one of the largest oil and gas blocks in the Republic of Albania, a member of NATO and an official candidate for membership in the European Union. The company also acquired various chromite properties in Albania and is currently evaluating its strategic options.

Current News

Floatel Secures Longer Stay for Accommodation Rig off Australia

Floatel Secures Longer Stay fo

Industry Consortium to Asses Floating Nuclear Plants for Mediterranean Sea

Industry Consortium to Asses F

Longitude Lines Up More Work at Shell’s West Delta Deep Concession off Egypt

Longitude Lines Up More Work a

MeyGen Tidal Energy Tech Sets New Operational Record

MeyGen Tidal Energy Tech Sets

Subscribe for OE Digital E‑News

 
Offshore Engineer Magazine