NOVEMBER 28, 2005 - 09:30 ET
Centurion Updates Activities in Egypt and Tunisia
CALGARY, ALBERTA--(CCNMatthews - Nov. 28, 2005) - Centurion Energy International Inc. (TSX:CUX) (AIM:CUX.L):
Not for distribution to United States newswire services or for dissemination in the United States.
SUMMARY
- Production is currently 30,670 boepd from Centurion's Egyptian operations. This represents a 3,700 boepd increase from the rates reported at November 14, 2005. The increase is the result of a gradual ramping up of production as additional wells are connected and facility commissioning continues.
- The El Wastani 7 development well tested 24.5 mmscf/day of gas with 421 bpd of condensate. The well has been tied into the El Wastani facilities but is producing at a restricted rate until facility commissioning is complete.
- The Abu Monkar 3 well spud on November 15, 2005. Surface casing has already been set to 1,380 meters. The well is expected to reach total depth by mid-December.
- The El Wastani 11 well spud on November 16, 2005. Surface casing was set at 1,314 meters. The well is currently drilling at 1,792 meters and is expected to reach total depth by mid-December.
- The 2D seismic acquisition program in Kom-Ombo commenced on November 15, 2005. 60 kilometers have been acquired representing approximately 10% of the total seismic survey.
- The West Manzala seismic acquisition is almost complete. Some 1,260 square kilometers were acquired representing 63% of the total 2000 square kilometer program. The survey crews have been released to another operator until Q2 2006 when acquisition for Centurion will resume on the West Qantara concession. 15 wells have been budgeted for 2006 in the West Manzala concession commencing with Al Hamra -1 which is expected to spud before year-end.
- PetroCanada, operator of the Mellita Permit, has plugged and abandoned the Amira-1 exploration well. The well was drilled to 3,511 meters and did not encounter any commercial hydrocarbons in the Zeebag or Meloussi formations.
- The El Wastani East 3 well is awaiting completion in the Upper Abu Madi Formation. The well is already connected to the plant facilities and is expected to commence production by December 10th.
Mr. Said Arrata states, "Continued commissioning of the recently installed gas plant in El Wastani has increased gas production by an additional 3,700 boepd in the last two weeks. Additional well tie-ins will have us on track for our forecast exit rate of 43,000 to 45,000 boepd. The Mellita offshore well results, while disappointing, will have no effect on our cash flow or forecast production rates in 2006 or beyond."
El Wastani Production Lease
The El Wastani 7 well reached total depth of 3,050 meters. The well was completed and tested the Qawasim Formation at a rate of 24.5 mmscf/day of gas with 421 bpd of condensate. The well has been tied into the El Wastani gas gathering system and is currently producing at a restricted rate awaiting further commissioning at the El Wastani facilities.
El Wastani East 3 has reached total depth and encountered 53 meters of gross pay in the Upper and Lower Abu Madi Formations. The well is awaiting a service rig for completion and testing. Tie in work from El Wastani East 3 to the El Wastani facilities is already complete.
The Precision drilling rig #147 is drilling the El Wastani 11 location. The primary targets are in the Lower Abu Madi and Qawasim reservoirs. Surface casing has been run and cemented to 1,314 meters and the well is currently drilling ahead at 1,792 meters.
The ECDC#2 rig is currently moving from the El Wastani East 3 well to the El Wastani 10 location. El Wastani 10 is expected to spud on December 3, 2005, targeting the Upper and Lower Abu Madi and Qawasim reservoirs.
The current production from the El Wastani Production Lease is 128 mmscf/day of natural gas and 4,794 bpd of condensate and natural gas liquids (26,127) boepd.
South El Manzala Production Lease
The SBDC Rig #50 has been released in accordance with the terms of its original contract. A service rig capable of drilling shallow wells in the area (Valve and Tools #1) has been contracted until the end of 2006 and will replace the SBDC Rig #50 in the South El Manzala area. The Valve and Tools #1 rig is moving to complete El Wastani East 3 and will then return to South El Manzala for remedial work in the Gelgel field.
The current production from the South El Manzala Production Lease is 22 mmscf/day (3,666 boepd). Nearly completed tie-in work for Gelgels 6 & 11 in addition to re-completions at Gelgels 1, 2 & 4 will add an additional 15-20 mmscf/day of production to the South El Manzala field by exit 2005.
Abu Monkar 3 Exploration Well
Abu Monkar 3 was spud on November 15, 2005 and is targeting the same Sidi Salem prospect as Abu Monkar 2 at a depth of 2,700 meters. Surface casing has already been set to 1,380 meters and drilling has resumed. Centurion has engineered the drilling plan for Abu Monkar 3 to avoid the mechanical issues encountered in Abu Monkar 2, and drilling is expected to be completed prior to year end. The Sidi Salem Formation has yet to be tested in the South El Manzala Lease however other operators offsetting the Centurion location have found condensate rich gas from the Sidi Salem Formation in their leases.
West Manzala and West Qantara Blocks
The 3D seismic acquisition program in the West Manzala Exploration Concession is almost complete with 63% of the 2,000 square kilometer program completed. Early results of the processing and interpretation are very encouraging and 15 wells have been planned for the 2006 drilling program.
West Gharib Permit (Centurion 30% Working Interest)
The Hoshia field is now producing from three wells. Work-over operations have been completed on the Hoshia 2 well and the well is now producing at 419 bopd. The Hoshia 3 well has been completed and is currently producing at 291 bopd. Total production from the Hoshia field is 1,280 bopd. The Fadl-1 well is now producing at 270 bopd and the Hana Field continues to have stable production at 1,580 bopd.
Current production from the West Gharib concession is 3,130 bopd (939 bopd net to Centurion).
TUNISIA
Mellita Permit
In Tunisia, PetroCanada (Mellita Inc.) as operator of the Mellita Offshore Permit completed drilling of the Amira-1 exploration well. The well reached a total depth of 3,511 meters in the Jurassic Formation without encountering any significant hydrocarbons. The well has been plugged and abandoned on November 21 and the Trident #4 rig was released on November 23, eight days ahead of schedule.
Certain statements in this news release constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance in regard to actual future production rates and no assurance that our drilling program will result in increased reserves or production rates. Furthermore, future estimates of production can be affected by many events beyond the control of the Corporation, such as availability of equipment or personnel, the performance of contractors, declines in well performance or well performance failing to meet expectations, regulatory delays, weather delays, equipment failure or other problems encountered in drilling or completion of wells and the timing of completion of facilities. Seismic programs may also experience delays for some of the same reasons.
Statements related to "reserves" or "resources" are deemed to be Forward Looking Statements as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably produced in the future.
Boe's disclosed in this news release may be misleading, particularly if used in isolation. A boe conversion ratio of 6mfc:1 boe is based on an energy equivalency conversation method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
CONTACT INFORMATION
Centurion Energy International Inc.
Said S. Arrata
President and CEO
(403) 263-6002
or
Centurion Energy International Inc.
Barry W. Swan
Senior Vice President and CFO
(403) 263-6002
or
Centurion Energy International Inc.
Scott Koyich
Investor Relations
(403) 215-5979
or
Citigate Dewe Rogerson, London
Martin Jackson
+44 207 638 9571
or
Citigate Dewe Rogerson, London
Rachel Lankester
+44 207 638 9571
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