Centric Energy Corp.
TSX VENTURE : CTE

Centric Energy Corp.

February 27, 2008 09:30 ET

Centric Energy Corp.: Project Update

LONDON, ENGLAND--(Marketwire - Feb. 27, 2008) - The Board of Centric Energy Corp. (TSX VENTURE:CTE) wishes to provide an update on its activities.

Russia

The South Temryuk 1 well in southern Russia is now at its final depth having penetrated both of the main objective horizons. The well is being prepared for wireline logging and subsequent evaluation and testing of any prospective intervals.

The Company understands that there could be up to three prospective intervals with hydrocarbon indicators based on preliminary analyses of earlier wireline logs and core data. However, the information provided to the Company about the well is incomplete and has not been independently verified at this time. In addition, the Company understands that a deeper, 40-metre interval of fast drilling may coincide with the deeper prospective seismic horizon, which is encouraging although the Company has not been provided with information about lithology or hydrocarbon indications in this interval.

The Company is experiencing continuing difficulties in obtaining information and data about the well on a timely basis from Texnoton, the operator, despite provisions in the Company's Option Agreement with Arax Energy to ensure access to such information, and in an Interim Framework Agreement with parties that include the operator Texnoton covenanting that such information will be provided. The Company is making all efforts to rectify this situation, but it is unclear if and when this issue will be resolved.

The Company has met all of its funding commitments for the current well under the terms of its Option Agreement with Arax Energy and has no obligations to provide further funding. The funding to date has been provided by way of loans. The use of these funds for the drilling of the current well has been verified by the Company's auditors.

The South Temryuk and Protoka license areas are in the Azov-Kuban basin in southern Russia. The area is highly prospective with the first oil discovery in 1864 and oil exploration and production continuing today. The rich Maikop shale source rock, which generates much of the oil of the Caspian basin, is present in the Azov-Kuban basin and generates the hydrocarbons in this area. The overlying Chokrak reservoirs, the objectives in the two license areas, are productive in adjacent fields.

Mali

Under the terms of the farmout of Mali Blocks 7 and 11, Heritage Oil Corporation will earn a 75 percent interest in exchange for funding the work programme for the next 2 license years, including the acquisition of 2D seismic in both blocks and the drilling of one exploratory well to a depth of at least 2000 metres, at a minimum cost of almost US$14 million. The seismic acquisition is expected to be completed during 2008 with the well to be drilled soon afterwards. The farmout is contingent upon final authorization from the Mali Government which is expected to be received in the near future.

The two license areas total almost 73,000 square kilometers (18 million acres) and are located in the Mesozoic-age Gao graben, part of the west African rift system. Hydrocarbon discoveries have been made in many Mesozoic grabens in central and west Africa; in contrast, the Gao graben is almost unexplored, with only 600 km of 2D seismic and one well drilled in 1979. The seismic data, acquired in 1974, demonstrate the presence of a thick, prospective, sedimentary section. The detailed aeromagnetic data flown by Centric Energy in 2006 demonstrate the extent of the graben system and the areas of focus for the next seismic acquisition.

Heritage Oil Corporation ("Heritage") is recognized as one of the most successful independent oil companies operating in Africa. As 50 percent owner and operator of Blocks 3A and 1 in Uganda, Heritage has been instrumental in the discovery of a new hydrocarbon system in the Lake Albert Basin which has tremendous hydrocarbon potential. Heritage has also been very successful in the Republic of the Congo. Its initial exploration work led to the discovery of the M'Boundi oilfield, one of the largest onshore oilfields in sub-Saharan Africa.

Financing

Centric Energy currently has no major financial exploration obligations for 2008. However, the Company is currently reviewing a number of financing options to provide funds for ongoing new ventures activities and for general and administrative costs.

Other Opportunities

The Company recently appointed Malcolm Brierley as Exploration Manager to focus on developing and acquiring new opportunities. Malcolm has over 25 years' experience in international oil exploration.

Centric Energy is currently evaluating new opportunities with a view to broadening its portfolio. These efforts are focused on opportunities that can provide exposure to near-term reserves and/or production, and include corporate actions with similar companies.

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