CGHI - 47.6% interest in possibly as much as 0.9-1.7 Billion Barrels of Oil and 3.2-8.6 TCFG
IPO SHEDULED AROUND 10/6/06
investorshub.com
O/S 271,151,064 (per TA 7/3/06)
Float ~120 million (per IR 5/06, confirmed 7/7/06)
centuriongold.com
Latest 8-K Summary...and the link: edgar.brand.edgar-online.com
. The JV 'Carbon Agreement' between Centurion and Carbon Investments has been cancelled. This means that Centurion no longer have to pay 60% of their share of Arrik Energy to Carbon. This is huge news, please see revised allocation of rights below. Carbon have confirmed that they accept the cancellation of this agreement and have no further claim against Centurion in respect of this.
2. Centurion to be reimbursed for all costs concerning the Alaska project, including those relating to the IPO, from proceeds of the IPO. The exception to this being the following:
$431k paid to Coscol (HK) as downpayment to secure the rig transport vessel
$500k paid to Songa Drilling to secure the rig.
These costs 'may' be reimbursed, subject to the success of the IPO, and at the discretion of Arrik Energy.
3. Centurion (not Arrik Energy) to pay Escopeta and Taylor the following in further conideration for leases, once economic production is established at the following fields:
North Alexander $2 million
East Kitchen $8 million
Kitchen $3 million
South Kitchen $2 million
4. Escopeta Energy Co. to become a subsidiary of Arrik Energy prior to the closing of the IPO.
The revised allocation of rights to the Oil leases/ production is as follows:
Post IPO Corporate Structure:
68% Centurion
6% Kidd Management
26% IPO Shareholders
Allowing for the payment of Royalties of 30% (12.5% State of Alaska, and 17.5% Escopeta/ Taylor) from the gross production figures, the respective % allocation are then calculated as follows:
Centurion: 68% x 30% = 47.6%
Kidd Management: 6% x 30% =4.2%
IPO Shareholders: 26% x 30% = 18.2%
(Total of the 3 parties is 70%)
O&G Resource estimates of which CGHI has 47.6% interest after IPO sheduled on or about 10/6/06:
Various estimates have been made both by Escopeta’s in house geologists and by Prator Bett, LLC, petroleum engineers. Escopeta have estimated the potential resources as follows (Press release of 21st October 2005):
1) North Alexander (Probable Onshore .4 TCFG) - scheduled to drill January of 2007
2) East Kitchen (Probable Offshore 2.7 TCFG, 457 MMBO) - scheduled to drill March of 2007
3) Kitchen (Probable Offshore 3.9 TCFG, 829 MMBO) - Spring 2007
4) South Kitchen (Probable Offshore 1.6 TCFG, 125 MMBO) - Summer/Fall 2007
Prator Bett, LLC, were independently appointed by Centurion, as Consultants to carry out a check on the resource estimates, based on the survey information supplied by Escopeta, prior to entering into any formal agreement with Escopeta. They came up with a more conservative sum estimate for all the above mentioned lease areas, which down-played the possible gas resources (Press release 14th November 2005):
1) Mid-level estimate: potential of 246 million barrels of oil and 1.20 TCFG, which is considered to be conservatively valued.
2) At the high level, this is substantially more at 933 million barrels of oil and 3.20 TCFG.
These are still very significant amounts and any upside on gas discovery would greatly increase the resource value of the project.
47.6% interest in possibly as much as 0.9-1.7 Billion Barrels of Oil and 3.2-8.6 TCFG !!!
The AIM IPO to spin off the O+G assets plans to raise money to assist in the financing of the project. Once drilling is underway and assuming O&G are discovered, the project should become self financing from revenues. The IPO was originally mentioned for launch as May 31st 2006, although this date has been delayed. Drilling is supposed to commence in or around Jan 2007 for North Alexander and March 2007 for East Kitchen.
After the IPO, CGHI will have a 47.6% interest in the above 130,000 acre Cook Inlet project of likely over 1 BILLION boe.
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Petroleum News, July 16,2006 (Vol. 11, No. 29)
THEY GOT IT!
Escopeta Oil has received its Jones Act waiver to bring a jack-up drilling rig into Cook Inlet.
U.S. Sen. Ted Stevens, R-Alaska, made the announcement in Anchorage on July 7.
Escopeta Oil President Danny Davis confirmed he had the waiver in hand. Homeland Security issued it June 27, he told Petroleum News, and granted it in the interest of national security.
...“In our Kitchen prospects alone we think we have 1.7 billion barrels of oil and 7.5 tcf of gas in un-risked, in-house reserves — 450 million barrels and 2.5 tcf at East Kitchen and 1.3 billion barrels and 5 tcf at Kitchen,...”
petroleumnews.com
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Petroleum News, March 16, 2006 (Vol. 11, No. 12)
SONGA CONTRACTS WITH INLET DRILLING FOR JACK-UP CREW; ESCOPETA HAS AGENCY PRE-APPLICATION, UNIT MEETINGS FOR COOK INLET PROJECT
petroleumnews.com
________________________________________________________________
Centurion Gold & Escopeta To Bring Jack Up Rig To Cook Inlet
Monday March 6, 2006 6:30 am ET
JOHANNESBURG, South Africa--(BUSINESS WIRE)--March 6, 2006--Centurion Gold Holdings, Inc. (OTCBB:CGHI - News) CEO Dale Paul and Danny Davis, President of Escopeta Oil, announced their companies have contracts in place to bring a jack-up rig to the Cook Inlet Basin of Alaska in the summer of 2006.
Contracts have been executed and deposits paid with Coscol (HK) Investment & Development CO. of Hong Kong for the Tai An Kou heavy lift vessel to bring Songa Company's drilling jack-up rig Tellus to the Cook Inlet. The rig will be leaving the Gulf of Mexico in late May and arriving in the Cook Inlet in early August.
Songa is a Norwegian company. The Tellus is an independent leg cantilever jack-up rig. It can work comfortably in 250 feet of water and has a drilling depth capacity of 20,000 feet. The Tai An Kou is a heavy lift vessel 512 feet long and 106 foot wide.
The schedule is to drill the #1 East Kitchen well to a depth of 17,000' in the summer of 2006, and our #1 Kitchen well in the spring of 2007. The Kitchen prospects alone have 1.2 billion barrels of oil and almost 7 tcf of gas in un-risked, in-house reserves -- 400 million barrels of oil and 2.7 tcf of gas at East Kitchen and 800 million barrels of oil and 4 tcf of gas at Kitchen.
Escopeta and Centurion are the first independent oil companies to bring a jack-up rig to Alaska in the history of the Cook Inlet Basin, and this is the first time a jack-up has been in the inlet for 14 years.
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PLAN OF OPERATIONS
Escopeta Oil and Gas Corporation Kitchen Prospect Exploration Drilling Plan (Issued April 5, 2006)
borough.kenai.ak.us.
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Major Oil and Gas potential in Cook Inlet, Alaska
Article below highlighting the Cook Inlet's O&G potential. This is supported by the findings of the U.S. Department of Energy’s report on the Alaska Cook Inlet (from which the Executive Summary is also attached below, following on from the main news article).
petroleumnews.com
DOE Report - cookinletoilandgas.org
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Extensive Portfolio of Mineral Properties in South Africa
Centurion has a considerable number of mines in South Africa with mineral assets
comprising of gold, platinum and PGMs, chrome and tin. Centurion acquired
its many properties through the South African “Use it or lose it” legislation enacted in the September of 2004.
The Company was able to capitalize on this unique opportunity by acquiring mineral rich properties at below market prices.
The status of the various properties is as follows:
Uvongo South Rand Gold Basin
has a recoverable potential of 5 million oz. gold with an estimated value of over $3 billion.
It is in the initial stage of its engineering report, has five licenses submitted
with two issued and the Company is waiting on the other three.
Omaruru Gold Mine:
has gold dump reclamation of 200,000 scoped resource with an estimated value of $3.8 million.
Zaaiplaats Pty Ltd Tin Mine:
has potential for 3.3 million tons with an estimated value of $40.75 million.
It's license is issued and the engineering report is in the final stage.
Coinholders Chrome Mine:
has a potential of 660,000 tons of chrome and 13,000 oz. of platinum tailings
dump and pipe deposits with an estimated value of $409.68 million.
Company is waiting on the license.
Naboom:
has high grade platinum potential of 2.4 million oz with an estimated value of $2.7 billion.
It is in the initial stage of its engineering report and the Company is waiting on its license.
K&R Platinum Mine:
has a potential of 2.7 million tones of platinum rich PGMs with an estimated value of $49.97 million.
The Company is currently waiting on its licenses.
Fulloutput Pty. Ltd.:
has an indicated reserve of 104,000 oz. and inferred reserve of 240,000 oz. from SKR
with an estimated value of $217.62 million.
It is in the initial stage of its engineering report and the Company is waiting on its license.
Primrose mine:
has a potential 500,000 oz gold resource that is currently being mined.
Operations continue to improve as production yield has doubled within the past six months.
(NOTE: the 5 miilion oz gold and 2.4 million oz platinum are possible reserves not proven under NI 43-101)
Mining Revenues:
Based on their most recent 10Q, for the period ended December 31, 2005, the numbers are:
Mining revenues for the three months ended 12/31/2005 were $576,252 and mining revenues for the twelve months ended 12/31/2005 were $1,580,461.
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All SEC filings yahoo.brand.edgar-online.com
All press releases for the past 3 years centuriongold.com
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U.S. IR Contact:
Dana M. Smith
MCC Financial Services
10757 South River Front Parkway, Ste. 125
South Jordan, Utah 84095
Tel: (801) 816-2500
Mbl: (801) 898-1027
Fax: (801) 816-2599
dsmith@mccglobal.com
Transfer Agent
Corporate Stock Transfer, Inc.
3200 Cherry Creek Drive South
Denver, Colorado 80209
Telephone: 303-282-4800 |
