Centric Energy Corp.
TSX VENTURE : CTE

Centric Energy Corp.

October 09, 2007 14:17 ET

Centric Energy Corp.: Drilling and Project Development Update

LONDON, ENGLAND--(Marketwire - Oct. 9, 2007) - The Board of Centric Energy Corp. (TSX VENTURE:CTE) is pleased to provide the following update on its operations.

RUSSIA

South Temryuk 1 well

Drilling is continuing successfully on Centric's South Temryuk 1 well located in the prolific Azov-Kuban basin in southern Russia. The 245 mm casing has been set at 2,902 meters and drilling is progressing at a depth of approximately 3,010 metres. This casing was originally planned to be at 2,650 meters - setting it deeper allows greater flexibility as the well progresses. Wireline logs were run at 2,902 metres and were used for correlation purposes and to identify any potential zones of interest in the overlying section.

Correlations show that the formation depths are close to the original well plan, and therefore the first objective horizon should be at about 3,250 metres. This could be reached during the last week of October depending on drill-rate. The second of the main objective horizons, at a depth of about 3,760 metres, is expected to be reached in the last half of December.

The South Temryuk license is surrounded by producing oil and gas fields, including the Kurchanskoye field owned by Rosneft which is contiguous to the east and has produced over 80 million barrels of oil and Bely Kutor owned by Neftebitum that is contiguous to the south and produced over 30 million barrels of oil and the Stralanskoye field owned by Rosneft, to the west which has produced over 20 million barrels. Rosneft has drilled four wells in this interval over the past 12 months with initial production rates between 1,200 and 3,600 barrels a day of light sweet crude plus gas and condensate.

Protoka 1 well

On the Protoka license, 120 km to the north-east, construction of the access road for the first well has begun. The Protoka 1 well will test a fault-bound structural closure identified on seismic. There are several other similar prospects on the license. The target reservoir horizon is the same Chokrak formation targeted in South Temryuk, which immediately overlies the rich Maikop shale source rock which has also sourced oil in the Caspian basin. At the Protoka 1 well location the reservoir is expected to be 75 metres updip of the old Sladkovskaya 8 well which tested trace amounts of oil.

The Protoka permit is in a highly productive area. There are many older existing fields in the vicinity of the permit; fields located within a 20 km radius have C1 reserves totaling more than 26 mm barrels of oil plus gas and condensate.

For example, the Morozovskaye producing oil and gas fields owned by Gazprom, have a high concentration of condensates and have historically produced over 100 million barrels of oil equivalent ("BOE's").

Protoka 1 meets Centric's objectives of growing a diversified portfolio of prospective oil and gas assets.

MALI - Farmout Discussions

Negotiations with a qualified company have concluded for a farm-out of an interest in the company's Mail licenses, the terms of which will be announced as soon as the deal is executed. The approval of the Mali Government will then be sought.

The farm-out, if completed, will further qualify Centric's objectives of broadening opportunity and reducing risk to shareholders in creating a balanced portfolio of prospective oil and gas assets in technically underexploited regions of the world.

NEW OPPORTUNITIES

Centric Energy is regularly reviewing new opportunities with particular focus on properties with potential to be in production in the near term but also with exploration upside, in Russia, the FSU and sub-Saharan Africa.

ABOUT CENTRIC ENERGY

Centric Energy Corp. is focused on acquiring hydrocarbon assets in areas where the application of new technology and concepts can find new hydrocarbon reserves. Our strong acreage holdings in the Mesozoic-age Gao graben in Mali provide very exciting long-term potential. In addition, CTE is a holder of an option on two highly prospective oil and gas exploration licenses in southern Russia. Management of CTE believes this new opportunity in southern Russia will have a high impact on CTE bringing the near-term possibility of hydrocarbon discovery and production.

ON BEHALF OF CENTRIC ENERGY CORP.

Alec E. Robinson, President and CEO

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:

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Centric's periodic filings with Canadian Securities Regulators. 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. Centric Energy Corp. does not assume the obligation to update any forward-looking statement except as required by applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Centric Energy Corp.
    Brooke Cote
    Investor Relations
    Toll Free: 1-800-962-7189
    Website: www.centricenergy.com.