Centric Energy Corp V.CTE

News. Kenya Government Approval of Block 10BA Farm

[ShockEm]

Centric Energy Announces Kenya Government Approval of Block 10BA Farmout

LONDON, ENGLAND--(Marketwire - Nov. 4, 2010) - Centric Energy Corp. ("Centric Energy" or "the Company") (TSX VENTURE:CTE) is pleased to announce that the Kenyan Government has approved the farm-out of a 50 percent interest in Block 10BA to Tullow Oil PLC ("Tullow") (LSE:TLW).

Block 10BA covers 16,205 square kilometres in the northwestern part of Kenya, the size of approximately 65 UK North Sea exploration blocks. It includes approximately 75 percent of Lake Turkana. It is located in the eastern arm of the Tertiary-age East African Rift system and is considered analogous(1) to the Albertine rift in Uganda, where an estimated 1 billion barrels of reserves have been proven to date, with another 1.5 billion barrels of prospective resources(2). The Lake Albert blocks are operated by Tullow Oil, and out of 36 exploration wells drilled, 35 have been successful.

(1) Resources Evaluation Report by Gustavson Associates prepared January 2010, to NI 51-101 standards.

(2) Tullow financial reports, August 25th 2010. Centric Energy is not able to confirm whether or not this information was prepared by a qualified reserves evaluator or auditor or in accordance with the COGE Handbook.

Vintage 1984 seismic data on Lake Turkana demonstrate the presence of several sub-basins and a very thick sedimentary section of Tertiary age. Evidence of a working petroleum system is provided by analysis of satellite-derived synthetic aperture radar data which indicates slicks on the surface of the lake that may be related to oil seeps. In addition an oil seep was located on the northern shores of Lake Turkana by UK geologists during fieldwork in the mid-1980s.

The Resources Evaluation Report for Block 10BA prepared by Gustavson Associates in accordance with NI 51-101 and published on January 1st, 2010, estimates P50 prospective resources of 2.2 billion barrels of oil (unrisked) in 27 prospects in Block 10BA. The P90 and P10 numbers are 0.95 billion barrels and 4.4 billion barrels respectively.

Prospective Resources are those quantities of petroleum estimated to be potentially recoverable for undiscovered accumulations by the application of future development projects. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

The terms of the farm-out agreement are that Tullow will earn a 50 percent participating interest in the PSC and will assume operatorship in return for:



-- Reimbursing 50 percent of Centric's acquisition costs for the PSC which
total approximately US$750,000.
-- Paying 80 percent of the first US$30 million of expenditures under the
PSC.
-- Assuming 80 percent of the bank guarantees and parent company guarantees
during the period in which it is paying 80 percent of the expenditures
under the PSC.



The Kenyan Government approval was one of the conditions precedent for finalizing the farm-out to Tullow. The final condition is the settlement of the judicial review application filed against the Kenyan Ministry of Energy relating to six exploration permits granted by the Ministry, including the Company's PSC covering Block 10BA. As advised in our news release dated October 28th, 2010, the next court hearing is scheduled for November 16th, 2010. Meanwhile, the Kenyan Ministry of Energy has advised the Company that it can carry on with its work program and that its PSC remains in good standing.

"Centric Energy is very pleased to receive the Kenyan Government approval of the farmout to Tullow Oil," said Alec Robinson, President & CEO of Centric Energy. "Tullow's success and expertise in the very similar geological setting of the Albertine Rift in Uganda will ensure that Block 10BA is explored rigorously and without delay, using the most modern exploration technology and in accordance with recognized international environmental standards and principles. Centric Energy looks forward to working closely alongside Tullow on this outstanding exploration opportunity."

ON BEHALF OF CENTRIC ENERGY CORP.

Alec Robinson, President and Chief Executive Officer

This News Release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.


FOR FURTHER INFORMATION PLEASE CONTACT:
Centric Energy Corp.
Alec E. Robinson

Toll Free: [phone] or [phone]


www.centricenergy.com

Source: marketwire

[Boolish]

CTE...stands to reason they have a fairly good shot of getting through the judicial review on Nov 16 when the Kenyan Govt has approved the farm out ahead of the hearing. JMOSome have said the stock will sell off on this...I tend to disagree. The markets hate uncertainty and getting this review behind them will take a portion of that uncertainty out of the stock.I also do not expect a financing