In order to acquire the additional interest, Centurion will purchase a 25% equity holding in Hercules Petroleum Limited (Hercules) for a cash consideration of US$4.4 million. Since Centurion already owns 75% of the Hercules equity, this company will therefore become a wholly owned Centurion subsidiary once the transaction is completed.
Block 4 covers an area of 212,000 acres and is located in the heart of the JDZ, with water depths of approximately 1800 to 2200 meters. The JDZ represents a potential deepwater extension of the highly prolific Niger delta hydrocarbon province and to date the region has been under explored due to a historic maritime boundary dispute. Over the last few years, however, the JDZ has been opened for exploration and Chevron have recently announced an oil discovery in the JDZ Block 1, which lies immediately to the north of Block 4 and on the same geologic trends.
A 3D seismic survey has already been acquired on Block 4 and the data is viewed as encouraging since it indicates the presence of several large structures with the potential to hold significant reserves volumes. Consequently, the Block 4 Joint Venture is attempting to secure a deepwater rig to drill the first exploration well on the concession in the second half of 2007. This well would be the first of three commitment wells, which are scheduled to be drilled on the Block during the Phase 1 of the exploration license.
Centurion is a Calgary-based oil and gas exploration and production company, engaged in oil and natural gas activities in Egypt, Tunisia and the Sao Tome JDZ.
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