Energulf Resources Inc. ENGFF

Kunene

[TO1]

“ENG has a potential 6 billion barrel target offshore Namibia.” If one reads the Sep 8, 2006 Resource Report, the 6 billion barrels + gas is from the high estimate P10 potential resources of both the Kunene and Hartmann prospects. On the low end, P90 they could hold a potential 989 mmbo + gas. The best case scenario and highest probability for combined recourses, P50 resources, shows 3,158 mmbo + gas. The thing is that Hartmann potentially holds 85% of those potential resources and it’s Kunene that is getting drilled at this time. So I don’t see the need to get caught up in 6 billion barrel figures when ENG will not be drilling the target that holds the far majority of the potential and people are taking about the most ideal numbers that have the same probability (10%) of occurring as the lowest numbers. The Sep 2006 report says Kunene is a, P50, 454 mmbo + 445 Bcf target. That is all I am looking at. With the tiny share structure and potentially 45.4 mmbo + 44.5 Bcf = 52.8 mmbo. The current SP is very good value if it works out. If it doesn’t then you got one more shot on Hartmann. Now that report states the COS on Kunene to be 10-16% and Hartman to be 7-13%. Standard success rates for offshore “wildcat” drilling. So I will sell some to cover my initial cost in the run up to drilling and ride the rest for free. That’s why I got some about a month ago. Good Luck too All.