Centric Energy Corp.
TSX VENTURE : CTE

Centric Energy Corp.

August 24, 2010 09:30 ET

Centric Energy Announces Results of Kenya Oil Seep Study

LONDON, ENGLAND--(Marketwire - Aug. 24, 2010) - Centric Energy Corp. ("Centric Energy" or "the Company") (TSX VENTURE:CTE) is pleased to announce results of a Synthetic Aperture Radar (SAR) oil-seep study of its Block 10BA, northwest Kenya.

As part of its ongoing exploration work in Block 10BA, Centric Energy has purchased sixteen satellite acquired SAR scenes from Fugro NPA Ltd to provide a minimum of three SAR scenes from different dates over all areas of Lake Turkana. Fugro NPA's experts undertook an interpretation of these data to identify and classify possible surface slicks on Lake Turkana. They categorised the observed slicks as either "Priority Unassigned" slicks, which is an oil slick with an estimated 20 percent chance of being related to natural oil seepage, or "Unassigned" which is an oil or non-oil slick that has an estimated 10 percent chance of being related to natural seepage.

The four slicks that were classed as "Priority Unassigned" slicks appeared only on a single satellite scene, but had characteristics that were more likely to be related to natural seepage. In addition, five of the lower confidence "Unassigned" slicks appeared on two or more SAR scenes of different dates; according to Fugro NPA's experts, this repetition over a period of time increases the likelihood of them being related to natural seepage rather than related to another source. Therefore there are, in total, nine slicks which have a higher likelihood of being related to natural oil seepage from an underground source while still lacking clear characteristics that can confidently relate these slicks to such seepage. Some of the slicks coincide with geological structures observed on seismic data.

There are complementary data on a natural live oil seep which is recorded in an Onshore Seeps Database (source Fugro Data Solutions Ltd., North Wales) as occurring on the north-western shores of Lake Turkana. This seep is described as "Oil indications, close to salt and sulphur springs. Oil indication similar to Albert Rift". No geochemical analysis of this reported oil seep has yet been located by Centric Energy.

It is important that the interpreted slicks on the lake and the mapped seep on the shore are validated by sampling them in the field and undertaking chemical and geochemical analyses to identify the source of the oil. This work is planned for later in 2010.

"The results of this oil seep study are encouraging and we are cautiously optimistic," said Alec Robinson, President & CEO of Centric Energy. "These results need to be confirmed by fieldwork and sampling, and geochemical analyses, which we expect will be conducted during late 2010. If this future work confirms that the oil is due to natural seepage it will greatly improve our risk assessment of the exploration potential of Block 10BA."

ON BEHALF OF CENTRIC ENERGY CORP.

Alec Robinson, President and Chief Executive Officer

*BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF : 1 bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead.

This News Release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements:

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for the completion of the farm-out to Tullow Oil PLC and exploration activities that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future exploration activities and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, Centric's ability to procure the funding necessary to pay for its exploration costs, lack of availability of goods and services to complete exploration work, environmental risks associated with oil and gas exploration, regulatory changes and satisfaction of all conditions precedent under the agreement with Tullow Oil. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement except as required by applicable law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Centric Energy Corp.
    Alec E. Robinson
    Toll Free: +1 (800) 962-7189 or: +44 207 222 8512
    www.centricenergy.com