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.
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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.
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