Centurion Gold Holdings the only South African junior gold mining company publicly listed in the U.S., says that it has expanded its natural resources exploration and development activities to include the Oil and Gas Sector by entering into an agreement with Escopeta Oil Co., LLC of Houston, Texas. The agreement includes development of 130,000 acres of Leases in the Cook Inlet Basin of Alaska. Centurion and Escopeta intend to drill five Oil and Gas wells in the next two years. Escopeta will be the operator for the program.
Dale Paul, CEO and Chairman of Centurion Gold Holdings commented, "The management of Centurion has recognised what some might call an unprecedented opportunity to develop major oil and gas reserves in Alaska at a time when prices make it attractive to enter the oil and gas business. Centurion has acted swiftly to secure this lucrative agreement to participate with Escopeta in the development of these interests in the State of Alaska. Large reserves of oil and natural gas are available to be drilled upon immediately. Management believes that the Cook Inlet Agreement opens up new financial frontiers for the shareholders of Centurion and if successful could possibly make Centurion one of the stronger independent oil companies in the U.S. Permitting will be filed shortly and Escopeta and Centurion are moving forward to secure a Jack-Up Rig to bring to the Cook Inlet Basin to begin drilling in the Summer of 2006."
The Proposed Drilling Schedule to develop these fields is as follows:
ESCOPETA/CENTURION DRILLING SCHEDULE 1) East Kitchen (Probable Offshore 2.7 TCFG, 457 MMBO) Spring of 2006 2) North Alexander (Probable Onshore .512 TCFG) Winter of 2006-2007 3) Kitchen (Probable Offshore 3.9 TCFG, 829 MMBO) March 2007 4) South Kitchen (Probable Offshore 1.6 TCFG, 125 MMBO) July 2007
About Escopeta Oil Co., LLC:
Escopeta Oil is an independent oil company based in Houston, Texas and holds State of Alaska Leases located in the Cook Inlet Basin, Alaska, known as "The Kitchen Prospects". Escopeta's extensive geological research and state of the art reprocessed seismic data of the Kitchen Prospect area has resulted in Escopeta's management and professionals estimating that the "Kitchen Prospects" could possibly contain recoverable reserves up to 7 trillion cubic feet (7.0 TCF) of Natural Gas and between 435 million to one billion two hundred million (1.2 billion) barrels of oil. The Kitchen Prospect areas are conveniently situated for immediate sale of produced oil and natural gas when the fields come on line. The "Kitchen Prospect" leases in the Cook Inlet Basin are located both onshore and offshore and have been characterised as the "missing giant fields of the Cook Inlet Basin" in a lead article of the Petroleum News, Alaska, August 29, 2004.
The principals of Escopeta hold interests in the 160 million barrel "Cosmopolitan" Field operated by Conoco Phillips in the Cook Inlet Basin, Alaska. Escopeta has demonstrated its Cook Inlet Basin insight in 1995 with a participation in the leases that now comprise a large part of the "Cosmo" discovery.
Centurion Gold Holdings, Inc.:
Centurion Gold Holdings is the only South African junior gold mining company publicly listed in the United States. The Company is executing a roll-up strategy acquiring proven mineral assets, and working towards "growth through acquisition". These mineral assets generally have combined the potential for a near term revenue stream and existing low cost production operations with turnaround opportunities. Based in South Africa, the Company is ideally suited to exploit new legislation implemented by the South African government in May 2004. This legislation enforces a "use it or lose it" strategy, whereby all mining claims must be prospected within a designated time frame, otherwise, such prospects revert to the state, thereby creating never before seen opportunities, particularly for smaller companies like Centurion. The Company has built a strong team of experienced management and operations mining professionals to exploit these opportunities, and is positioning itself to become a major producer by continually implementing its "growth through acquisition" strategy.