On May 8, 2007, Century signed a letter of intent to acquire 10% working interest in the Alligator Bayou Prospect from CTC Minerals, Inc. The prospect encompasses approximately 16,000 gross mineral acres within Matagorda and Brazoria counties in Texas and will increase the current mineral rights position of the Company by more than 300%.
The proposed total depth for the first exploratory well exceeds 20,000 feet and will target a P90 estimated resource in excess of 2 TCF. Century anticipates the well to spud late on the fourth quarter of 2007 or early first quarter of 2008. The well will be operated by El Paso Corporation, publicly traded on the New York Stock Exchange and one of North America's largest independent natural gas.
The Alligator Bayou Prospect is consistent with the Company's strategy of pursuing high impact Gulf Coast projects. The lower tertiary "turtle structure" is expected to encounter lower tertiary reservoirs in a high-pressure high-temperature environment (HP-HT). The project has been defined using proprietary 3D seismic data in combination with historical 2D seismic data.
"We are pleased to add this exciting prospect to our growing inventory of HP-HT projects, which also include the Thunder Stud and Shadyside Farm. These prospects all have the potential to become significant major discoveries. We will continue to pursue quality exploration projects operated by major companies which have major upside economic potential," commented James Hersch, CEO of Century Petroleum.
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