Centurion Energy acquires 7.5% interest in block 4
2006-03-17 09:41 ET - News Release
Mr. Said Arrata reports
CENTURION ENERGY INTERNATIONAL INC.: UPDATE ON NIGERIA-SAO TOME JOINT DEVELOPMENT ZONE 'JDZ' BLOCK 4
Centurion Energy International Inc. has signed the production sharing contract (PSC) and advises of the formal granting by the JDZ of its 10-per-cent (gross) equity interest, 7.5 per cent (net) in block 4.
As stated earlier in Stockwatch on June 6, 2005, Centurion along with Hercules Petroleum Ltd. were awarded the 10-per-cent interest by the JDZ with Centurion holding a minimum of 7.5-per-cent equity interest in the block.
The PSC was signed with the JDZ on March 14, 2006, under which Centurion is obligated to pay $6.75-million (U.S.), being its 7.5-per-cent share of the total signature bonus. Centurion will also be liable for its share of the minimum work program of two exploration wells and one appraisal well, or its share of total minimum expenditure of $53-million (U.S.) for the block.
In commenting on the signing of the PSC, Said Arrata, president and chief executive officer of Centurion, said, "I am very pleased with the signing of the PSC as it now allows us to proceed quickly toward exploring the very attractive prospects already identified by seismic in block 4."
Block 4 is an extension of the prolific Nigeria deepwater play where a number of world-class oil discoveries have been made recently. It covers a gross area of 857 square kilometres and lies in water depths of 1,800 to 2,200 metres.
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