CTE Centric Energy Corp.

Centric Energy Corp. ("Centric Energy" or "the Company") (TSX VENTURE:CTE) is
pleased to announce that the Kenyan Government has approved the farm-out of a 50
percent interest in Block 10BA to Tullow Oil PLC ("Tullow") (LSE:TLW).


Block 10BA covers 16,205 square kilometres in the northwestern part of Kenya,
the size of approximately 65 UK North Sea exploration blocks. It includes
approximately 75 percent of Lake Turkana. It is located in the eastern arm of
the Tertiary-age East African Rift system and is considered analogous(1) to the
Albertine rift in Uganda, where an estimated 1 billion barrels of reserves have
been proven to date, with another 1.5 billion barrels of prospective
resources(2). The Lake Albert blocks are operated by Tullow Oil, and out of 36
exploration wells drilled, 35 have been successful.


(1) Resources Evaluation Report by Gustavson Associates prepared January 2010,
to NI 51-101 standards.


(2) Tullow financial reports, August 25th 2010. Centric Energy is not able to
confirm whether or not this information was prepared by a qualified reserves
evaluator or auditor or in accordance with the COGE Handbook.


Vintage 1984 seismic data on Lake Turkana demonstrate the presence of several
sub-basins and a very thick sedimentary section of Tertiary age. Evidence of a
working petroleum system is provided by analysis of satellite-derived synthetic
aperture radar data which indicates slicks on the surface of the lake that may
be related to oil seeps. In addition an oil seep was located on the northern
shores of Lake Turkana by UK geologists during fieldwork in the mid-1980s.


The Resources Evaluation Report for Block 10BA prepared by Gustavson Associates
in accordance with NI 51-101 and published on January 1st, 2010, estimates P50
prospective resources of 2.2 billion barrels of oil (unrisked) in 27 prospects
in Block 10BA. The P90 and P10 numbers are 0.95 billion barrels and 4.4 billion
barrels respectively.


Prospective Resources are those quantities of petroleum estimated to be
potentially recoverable for undiscovered accumulations by the application of
future development projects. There is no certainty that any portion of the
resources will be discovered. If discovered, there is no certainty that it will
be commercially viable to produce any portion of the resources.


The terms of the farm-out agreement are that Tullow will earn a 50 percent
participating interest in the PSC and will assume operatorship in return for:




--  Reimbursing 50 percent of Centric's acquisition costs for the PSC which
    total approximately US$750,000. 
--  Paying 80 percent of the first US$30 million of expenditures under the
    PSC. 
--  Assuming 80 percent of the bank guarantees and parent company guarantees
    during the period in which it is paying 80 percent of the expenditures
    under the PSC. 



The Kenyan Government approval was one of the conditions precedent for
finalizing the farm-out to Tullow. The final condition is the settlement of the
judicial review application filed against the Kenyan Ministry of Energy relating
to six exploration permits granted by the Ministry, including the Company's PSC
covering Block 10BA. As advised in our news release dated October 28th, 2010,
the next court hearing is scheduled for November 16th, 2010. Meanwhile, the
Kenyan Ministry of Energy has advised the Company that it can carry on with its
work program and that its PSC remains in good standing.


"Centric Energy is very pleased to receive the Kenyan Government approval of the
farmout to Tullow Oil," said Alec Robinson, President & CEO of Centric Energy.
"Tullow's success and expertise in the very similar geological setting of the
Albertine Rift in Uganda will ensure that Block 10BA is explored rigorously and
without delay, using the most modern exploration technology and in accordance
with recognized international environmental standards and principles. Centric
Energy looks forward to working closely alongside Tullow on this outstanding
exploration opportunity."


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.

Centric Energy Corp. (TSXV:CTE)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Centric Energy Corp. (TSXV:CTE)
Historical Stock Chart
Von Jun 2023 bis Jun 2024