No Block 4 PSC Until 2006, Centurion 3Q Report Says

In an unaudited third quarter financial report released today, Block 4 participant Centurion Energy - an experienced oil and gas explorer in the Middle East - said it expectes to see a Production Sharing Contract and Joint Operating Agreement signed for the block of the Nigeria-Sao Tome Joint Development Zone in 2006.

The statement is the first by any participant regarding the revised time schedule for PSC signings following withdrawal of two earlier schedules by the N-DRSTP Joint Development Authority after Noble Energy left the ERHC Energy operatorship consortium and was replaced by Swiss mid-tier player Addax Petroleum.

Here is the statement, which was part of a breakdown of its worldwide operations issued by Centurion this morning:

NIGERIA-SAO TOME

Joint Development Zone

Negotiations to finalize the Production Sharing Contract (PSC) and the Joint Operating Agreement (JOA) are progressing. Signature of the PSC and JOA is expected during 2006.

Block 4 is an extension of the prolific Nigeria deep water play where a number of significant oil discoveries have been made. Interpretation and mapping of the 3D seismic indicates the presence of several large potentially oil bearing structures. The Centurion and Hercules Petroleum consortium were awarded a 10% interest in Block 4 of the Nigeria-Sao Tome and Principe JDZ. Centurion holds a 7.5% equity interest in Block 4 with an option to increase to a 10% working interest.

The statement can be read in its entirety at: http://biz.yahoo.com/ccn/051114/200511140296757001.html?.v=1.