Centric Energy Corp.
TSX VENTURE : CTE

Centric Energy Corp.

November 01, 2007 12:57 ET

Centric Energy Corp.: Drilling and Project Development Update

LONDON, ENGLAND--(Marketwire - Nov. 1, 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.

Drilling is progressing at a depth of approximately 3236 metres. The well was drilled to 3217 metres and stopped for wireline logging for the purpose of correlation. The wireline logs showed a 6-metre sandstone in the lowermost section of the hole. The sandstone is within the Chokrak formation which contains the target sandstone reservoir horizons, although correlations indicate that this sandstone is in addition to the first reservoir objective that has not yet been reached. A full suite of logs could not be obtained over this sandstone because it is at the bottom of this section of well, and the limited data available are insufficient at this time to reach a conclusion without further analysis about the presence or absence of hydrocarbons in this sandstone. Sandstones within the Chokrak formation are productive in adjacent fields and therefore a full suite of logs will be run over this sandstone interval at the next logging run and it will be fully-evaluated. This will be after the conclusion of coring operations and therefore is expected to be in about three to four weeks.

Drilling has now re-started. The first of the two main objective horizons is still expected at about 3250 metres. At that depth or at the next drilling break, whichever is sooner, the drill-bit will be replaced by a full-diameter core barrel to allow coring of the formation for subsequent reservoir studies. As a result, management expects that coring will start during the next week, depending on drill-rate, and will take two to three weeks.

The second of the main objective intervals, at a depth of about 3760 metres, is expected to be reached in the last half of December.

Protoka 1 Well

On the Protoka license, 120 km to the north-east, construction of the access road for the first well is almost completed. Rosneft has been contracted to drill this well, which should spud within two weeks.

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.

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. This is expected within the next week. The approval of the Mali Government and TSX Venture exchange approval 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.

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.

Cautionary Statement:

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

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