From Russia, with Oil: Centric Energy Spots Light Hydrocarbons

Centric Energy reports that drilling operations are continuing on the South Temryuk 1 well located near Krasnodar, southern Russia, to which Centric is contributing as part of its option agreement with Arax Energy.

As previously announced, the first full-diameter core was drilled from a depth of 3250 to 3257 meters in the top of the shallower target horizon. Subsequently, while preparing for a second core, the drilling pipe and core barrel became stuck in the hole. It took several weeks to recover the stuck pipe and return to drilling.

Subsequently, another five cores, each 7 meters long, have been drilled from 3287 to 3322 meters in a sequence of interbedded sandstones and shales, and two more cores in a thick sandstone interval from 3415 to 3429 meters. Laboratory results from these cores are not yet available but ultra-violet examination of cores from the shallower sequence, 3287 to 3322 meters, shows fluorescence which possibly could be indicative of light hydrocarbons. The cores have been sent for laboratory analysis to measure reservoir properties and any residual hydrocarbon content.

A full suite of wireline logs is now being run, which will allow correlation with offset wells and, in combination with the data from the cores, proper evaluation of the prospective reservoir intervals. Results of the evaluation will be released when available.

Stock exchange approval has been obtained for the farmout to Heritage Oil Corporation, which was previously announced. Preliminary approval has also been obtained from the Government of Mali and final approval is expected to be received by the end of January, completing the conditions precedent.

Meanwhile, Heritage has commenced discussions with seismic contractors and has also entered discussions with other companies operating in Mali with a view to coordinating seismic acquisition activities.