Message #19 From:
NewsBot Date: November 14, 2005 12:00:00 AM
CGHI News Centurion Gold Alaskan Oil & Gas Leases Estimated Potential Value of $4.5 Billion on East Kitchen; Confirmation of Assets Made By Renowned American Petroleum Engineers Prator Bett, LLC
JOHANNESBURG, South Africa--(BUSINESS WIRE)--Nov. 14, 2005--Centurion Gold Holdings, Inc. (OTCBB:CGHI), a natural resource development company, announced today that it has received the confirmation report for Escopeta Oil & Gas leases, which stated an estimated value at $4.5 billion dollars on the East Kitchen prospect alone. Centurion Gold contracted renowned petroleum engineers Prator Bett, LLC to study the seismic and related geological information on the Cook Inlet leases. The report provided by the independent third party confirmed that in the mid range there is, as per industry standards, a potential of 246 million barrels of oil and 1.20 billion cubic feet of gas, which is considered to be conservatively valued. At the high level, this is substantially more at 933 million barrels of oil and 3.20 billion cubic feet of gas, which was also conservatively valued at $18 billion. Based on the confirmation report, payments have been completed as per the lease agreement.
Prator Bett, LLC is a Houston, Texas, based petroleum engineering consulting company that provides economical evaluations to both public and private companies for year-end reporting to the Securities and Exchange Commission, acquisitions, divestitures, due diligence, estate planning, field studies, budgeting or financing. Prator Bett LLC also provides an independent third party estimate of future reserves and revenues for its clients' exclusive use or for use by its clients' investors or lenders.
Mr. Dale Paul, CEO and Chairman of Centurion Gold Holdings, commented, "Prator Bett is a leading petroleum engineering consulting company, and the fact that their engineers have validated the potential oil and gas reserves at $4.5 billion has given us the confidence to complete and finalize the first two payments to Escopeta Oil and Gas. We currently have two options for Jack up rigs to be contracted to move into the Cook Inlet leases in spring of 2006 and this report further justifies the decision to commit to the large capital outlay for the rigs to drill developmental wells for us."
Mr. Paul continued, "The Cook Inlet project is proving extremely valuable to Centurion, we have four prospects in Alaska: Kitchen, North Alexander, South Kitchen and East Kitchen. East Kitchen on its own has showed a value of $4.5 billion and we believe the other three prospects to be as good if not better as this could well be the biggest Oil and Gas find in North America of recent times. This obviously has generated a lot of interest from public companies, with a focus on Oil and Gas, one of whom we are at advanced stages of negotiations in taking the project forward with Centurion. This is exactly in line with our strategy of acquiring under-valued assets, developing them and, based on the offers that come along, determine the best way to return value to our shareholders through one of three options; holding; developing with a joint venture; or selling the assets and returning a portion of the profits to shareholders."
Prator Bett, LLC
Prator Bett, LLC is a petroleum engineering consulting company providing reservoir-engineering services to its clients. Prator Bett, LLC was founded in 1999 and is located in downtown Houston, Texas, the international energy capital. Prator Bett, LLC specializes in economic evaluations for year-end reporting purposes, oil and gas acquisitions and divestitures, estate planning, filed studies and budgeting. The managing partners of Prator Bett, LLC, M. Drayton Prator, III and Thomas G. Bett together have over 42 years of consulting experience. Mr. Prator and Mr. Bett established the company as a high quality petroleum consulting firm. Prator Bett, LLC provides its service mostly to small to mid-sized oil and gas companies, both public and private, by evaluating oil and gas properties in almost every producing basin in the United States and in several basins worldwide. The evaluation of oil and gas properties usually consists of an assessment of the remaining oil and gas reserves and an estimate of the future cash flow net to the evaluated interest. The goal of Prator Bett, LLC is to grow modestly in the future and to provide high quality service using experienced engineers at a reasonable cost.
Centurion Gold Holdings is a resource development company that acquires, develops and mines or spins out natural resource assets. The Company's 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. www.centuriongold.com
Forward-Looking Statements
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Securities Litigation Reform Act of 1995. The company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release the Company will appropriately inform the public.
