Centric Energy Corp.
TSX VENTURE : CTE

Centric Energy Corp.

August 05, 2009 09:30 ET

Centric Energy Update

LONDON, ENGLAND--(Marketwire - Aug. 5, 2009) - Centric Energy Corp. (TSX VENTURE:CTE) wishes to provide investors with an update on its activities.

- Monthly overheads cut by 70 per cent.

- Sustainable cash position of C$2.4 million.

- Mali exploration proceeding.

- Six license applications in process in West African countries.

- Well-positioned in other sub-Saharan countries.

Centric is focused on acquiring significant oil and gas opportunities with established partners in sub-Saharan Africa within the context of a balanced portfolio, while maintaining costs at a low level.

Expenditures are being minimized so far as possible in order to preserve cash for the purposes of project evaluation and prospect generation. Monthly overhead expenditures have been cut by approximately 70 per cent over the past 12 months by reducing spending wherever possible, allowing Centric to continue to pursue new opportunities.

Mali:

The operator of our Mali Blocks 7 and 11, Heritage Oil PLC (LSE: HOIL), is now in discussions with seismic contractors with a view to acquiring seismic data during the coming winter. The Blocks, which were licensed by Centric in 2006 and 2007, have a total area of 72,000 sq km, the size of 290 UK North Sea blocks. Geologically, they are located in the Mesozoic-age Gao graben in eastern Mali. This is part of a geological rift system that has proven to be oil bearing in other parts of Africa.

Existing seismic data acquired in 1974 are old and of poor quality. Nevertheless they show that the Gao graben has at least 15,000 feet of Mesozoic section. The new seismic will define prospects for exploration drilling during 2010. Centric retains a 25 percent working interest in the two Blocks, and is carried on all costs through the seismic programme and the first exploratory well.

New Opportunities:

Over the past 12 months Centric has undertaken a comprehensive review of sub-Saharan exploration opportunities and created excellent local contacts with industry leaders and governments. The result of these efforts is that we presently have six viable applications for oil and gas concessions in process in strategic countries in sub-Saharan Africa, as discussed below.

Four recent license applications have been submitted and are being processed for areas in west Africa, onshore and offshore, which are either adjacent to earlier discoveries or which have prior discoveries within the application area. In each case, Centric has local partners who provide the local content and cultural ties that are so important. In some of these applications, Centric also has an international partner which brings additional financial strength and industry expertise. Negotiations with the host governments are progressing. Although it is not possible to predict how long the negotiations might take, our expectation is that some of these licenses will be signed during 2009.

In addition Centric has two license applications, submitted during 2008, which are still being processed. These are progressing slowly due to local situations in the host countries, and in each case no final decision has been made. Through its local partners Centric is maintaining contact with the host governments and working hard to progress these applications.

Work is continuing in other sub-Saharan countries where Centric is reviewing data and preparing to submit license applications.

In addition to these opportunities, Centric is reviewing low-cost developmental or near-term production plays that will enable it both to establish an operational base and to generate revenues which will supplement its cash in hand, whilst its longer-term, sub-Saharan projects are progressed. Although these opportunities may be outside our core area of sub-Saharan Africa, the intent is to provide some financial stability and core activities that will help with license applications in Africa.

ON BEHALF OF CENTRIC ENERGY CORP.

Alec Robinson, President and Chief Executive Officer

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 accuracy of this release.

Contact Information

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