Centurion expects 38,000 boed average in 2006
2006-02-24 10:00 ET - News Release
Mr. Said Arrata reports
CENTURION UPDATES EGYPTIAN ACTIVITY
Centurion Energy International Inc. exited 2005 at 38,000 barrels of oil equivalent per day. Since then, production has reached as high as 43,000 barrels of oil equivalent per day. However, taking into account the problems experienced in commissioning temporary and new facilities, and recent advice of delays in delivery of future components of the gas plant and turbo expander, the company's estimate of average daily production for 2006 is approximately 38,000 barrels of oil equivalent per day. This is an increase of 65 per cent over the average production rate in 2005 of 23,000 barrels of oil equivalent per day. Centurion expects to add new production from the 2006 drilling program in the West Manzala concession by the end of 2006. The above production statistics do not include production that will be added upon closing the acquisition reported in Stockwatch on Feb. 22, 2006.
The El Wastani 12 well was drilled to a total depth of 3,109 metres and tested 17 million cubic feet per day of gas and 110 barrels of condensate from the Qawasim formation. The well is currently being tied in to the El Wastani gathering system.
The West Wastani 1 exploration well encountered lost circulation resulting in the drill bit getting stuck. The well has been sidetracked, and is currently at a depth of 3,135 metres and drilling toward its target depth of 3,400 metres. Prior to sidetracking, 40-API-degree black oil was recovered from the returning mud at the Qawasim level. The significance of the oil will be determined through logging and testing once the well reaches its total depth.
The Abu Monkar 3 exploration well has now been tested, and all potentially productive zones tested water and non-commercial quantities of gas. As previously stated, the well intersected high-pressure zones during drilling which required the company to run an entire string of casing to ensure safety during testing, resulting in a very time-consuming testing program. Well data are being reviewed and integrated into the regional interpretation to refine future Sidi Salim drilling prospects.
The first well in the West Manzala concession, Al Hamra 1, spudded on Feb. 7. The well is being drilled to a target depth of approximately 3,900 metres to test several prospective zones down to the Qawasim and Sidi Salim levels. The well has reached a drill depth of 2,856 metres and nine-foot-five-eighth-inch casing is currently being run.
The 2006 drilling campaign is under way with 15 to 17 wells planned on the West Manzala concession.
Said Arrata, Centurion's president and chief executive officer, states: "2006 promises to be an exciting year for the company. Now that we have established a strong production base, our strategy is two-pronged. We want to continue exploring for additional reserves where we see the potential for a fivefold increase over the next few years and increases in production each year. In addition, we want to position ourselves to access the LNG market where we see the potential for a threefold increase in pricing by accessing the export market."
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