Centric - Soley Africa.
UK-based independent Centric Energy Corp. hit the African E&P scene in 2006. Led by Alec Robinson the company lined up a management team that combined has over 140 years of industry experience. The company had acreage in Russia but sold it off to focus solely on Africa. When asked why Africa, Robinson said that sub-Saharan Africa is Centric’s main focus because the sub-region of the continent still offers plenty to explore and the relatively under-explored status of many of its sedimentary basins.
The company’s first venture into Africa was the acquisition of two blocks in Mali, Block 7 and Block 11, in 2006. Centric, later that year, carried out an airborne magnetic survey over the acreage. Events in 2007 bolstered the company’s confidence in the acreage when frontier explorer and discovery magnet Heritage Oil farmed-in to the blocks.
The company expanded its African position further in 2010 with the acquisition of Kenya’s Block 10BA. The acquisition gave Centric a total of 22 million gross acres in Africa. Like with its Mali assets, Centric brought in a highly experienced African explorer of Uganda fame, Heritage Oil’s former partner Tullow Oil.
While the company is just getting started on its African assets, it has lined up two partners that have experience on the type of geological terrain that Mali and Kenya represent and has its eyes open for any other potential prospects that may come its way. Petroleum Africa had the chance to ask CEO Alec Robinson a few questions about its assets in Kenya and Malia.
PA: What brought Centric to Africa? And more to the point why the little explored countries of Kenya and Mali?
AR: Centric was formed with the Mali Blocks 7 and 11; it continues to be focused on sub-Saharan Africa because of the large number of areas to explore and relatively under-explored status of many of the sedimentary basins. Mali has good license terms and a sparselyexplored rift basin, the Gao graben, where we have our licenses. In Kenya, there is a close analogue between our license area, which includes most of Lake Turkana, and the Lake Albert area of Uganda which has been proven oil-bearing by Tullow and Heritage. PA: The acreage in Kenya is vast, where will Centric start?
AR: The area is just over 16,200 sq km which compares with the 72,000 sq km that we hold in Mali. The exploration process is designed to allow us to focus-in on the most prospective areas while at the same time reducing exploration risk, before we begin the very expensive seismic surveys. We have already made good progress on our studies of the existing data. Once those studies are completed the next step will be gravity and magnetic surveys.
PA: How much information was available to the company from Shell’s wells drilled in the area? How much of a role did it play in Centric’s original assessment of the acreage? AR: We had most of the data from the Loperot-1 and Eliye Springs-1 wells and studied them before applying for the acreage. They provided indicators, both positive and negative. However, there are undrilled basins in Block 10BA which will have different geology; the existing wells give little indication of what might be found in those basins.
PA: Much of the block is under water, how many of the currently defined targets are offshore? How do the offshore targets compare to the onshore targets?
AR: The majority of the leads mapped on the existing data are offshore, and we expect this to be the case even with new data. The geology of the offshore is different from the onshore and we believe that they are both prospective.
PA: As seismic technology has advanced greatly since the last survey on Block 10BA, are there plans to conduct either 2D or 3D in the near future?
AR: Yes, new seismic data will be acquired during the first three years.
PA: How long was Centric searching for a farm-in partner before the Tullow deal was announced?
AR: Centric was not searching for a farm-in partner. We were approached by a number of companies of which Tullow was one.
PA: What made Centric go with Tullow?
AR: There were a number of factors that we took into account. Clearly, Tullow’s success and experience in Uganda, which has a similar geological setting, is important, in addition to their reputation, financial strength, and technical expertise.
PA: Woodside Energy was very high on Kenya some years back until the deepwater Pomboo well came up empty; do you believe they gave up to soon considering the Anadarko grab at Kenyan offshore blocks?
AR: New technology and new exploration concepts change the industry’s perceptions of the exploration potential. The acreage that we have licensed in Kenya was previously held by Amoco and Shell; the discoveries in Uganda have made it more interesting.
PA: CNOOC’s Boghal-1 was relatively near Block 10BA; does its lack of success make you re-think Centric’s exploration strategy for its block?
AR: Not at all. That was drilled in the Anza graben, which is different than the geology where we are drilling. We have a lot of work to do to evaluate the potential of our Block.
PA: I personally associate Tullow and Heritage together due to the Uganda successes and find it interesting that Centic is partnered with Tullow in Kenya and Heritage in Mali; how did you end up with two of the most successful explorers in East Africa?
AR: They are both successful companies with experience in African rift basins, and therefore interested in the exploration plays that we have in Mali and Kenya. We are very fortunate to have them as partners.
PA: On the subject of Mali, it was previously stated that a 2D seismic survey would take place in H2 2011, is that still the target? When do you estimate that drilling will take place in Mali?
AR: The seismic is expected to start late this year and drilling during 2011.
PA: Is there any previous data available on the blocks?
AR: In Mali, there is about 600 km of 1974 vintage 2D seismic, and one well. The seismic are valuable to define the basin but cannot be improved by re-processing. Centric Energy flew a detailed aeromagnetic survey totaling 42,000 line km which, combined with the seismic data, clearly defines the graben and allows us to select locations for the new seismic.
PA: Will the seismic be shot on Block 7 or 11? Which block is the company the most optimistic about?
AR: Seismic will probably be shot on both Blocks. At the moment we are keeping an open mind although the deepest part of the basin seems to be in Block 11.
PA: Does Centric have its eye on any other African acreage?
AR: We are looking for the next opportunity.
PA: How do the contract terms offered by Aurep and NOCK compare?
AR: In both countries the terms are very pragmatic and take into account the lack of exploration success in the past and the sparse previous exploration.
PA: What are your thoughts on the future of Africa’s petroleum industry?
AR: There will continue to be a lot of interest in exploration in Africa and undoubtedly there will be some good discoveries.
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