Centurion Awarded Stake in Block 4 of Nigeria-Sao Tome JDZ
Centurion Energy International reports that the Nigeria-Sao Tome and Principe Joint Development Authority has awarded the Centurion and Hercules Petroleum Limited consortium a 10% equity interest in Block 4 of the Nigeria-Sao Tome Joint Development Zone. Centurion will hold a minimum 75% of the consortium's award, equating to a minimum 7.5% equity interest in JDZ Block 4. The signing bonus due for the Block 4 has been set at US $ 90 million. Centurion is required to pay US$6.75 million of the total signature bonus.
The Nigeria Sao Tome and Principe Joint Development Zone is an area of overlapping maritime boundary claims situated in the Gulf of Guinea that is being jointly developed and administered by Nigeria and Sao Tome and Principe. Block 4 is a 857 square km offshore block that will be operated by a consortium of Noble and ERHC Energy Inc. which was awarded a 60% equity interest in the block. Exploration on the block is to be conducted in three phases over a period of eight years.
Block 4 is an extension of the prolific Nigeria deepwater play where a number of world class oil discoveries have been made recently. Based on the interpretation of 3D seismic several large structures capable of containing giant size oil fields have been identified and mapped.
Mr. Said Arrata, CEO of Centurion, stated that he is very pleased with
the award as it will expose the company to several very attractive oil
exploratory opportunities in a new highly prospective basin.