Cux shareholders: I received this email from the company today. Any comments would be appreciated. Good Dayyyyyyyy: Ronald,
Thank you for your recent e-mail. I must apologize first off for my late
response which occurred for two reasons: I was on vacation until August
21st and was "catching up" yesterday, and we are currently finalizing the
second quarter report to shareholders (available August 29th) which has
taken a considerable amount of my time.
In response to you questions:
~~~~~~~~~~~~~~~~~~~~~~
1. What is the current status on the latest drill program? (Manzah #2)
At present Al Manzah #2 has been cased to the top of the Bou Dabbous
structure. We encountered the structure 12 meters higher than projected
which is a good sign. We expect to drill through the casing this evening
and resume the drill program. We will continue to post updates on our
website. As there has been no major change in the status of drilling from
Friday we will update the website once we receive an update report from
Tunisia (expected tomorrow).
2. What is the current production from Manzah #1?
Current production from Al Manzah #1 - 745 bodp. GOR of 1500.
3. What is the company expecting to produce by year end? BOPD
Centurion is projecting exit production of 4,000 bopd. This is expected to
be achieved through the development drilling at Al Manzah. i.e. Al Manzah
#2 and #3.
4. When will the latest earnings report be published for the quarter?
Second quarter financial results will be available Tuesday, August 29,
2000.
5. What is the company's earnings expectations for year end?
We usually do not estimate earnings for the year, although we do estimate
cash flow. We do expect cash flow for the year to be approximately $0.28
per share (based on $20 oil). As oil prices continue to remain high, we
could see cash flow as high as $0.32. All figures are based fully diluted
shares.
Earnings, based on the first two quarters can be extrapolated to $0.12 per
share fully diluted.
6. When is the Natural Gas expected to be in production? What is the pr
ogress?
Natural gas from Egypt (El Wastani Field) is expected to be on production
by mid 2001. Based on our revised schedule which calls for more aggressive
detailed engineering we could see production as early as April 2001.
Production from the Abu Monkar field is expected in Q2 2002.
7. Power Generation Facility in Tunisia
Centurion and the power generation partners have initialed the commercial
terms for the project. Ultimately this "freezes" any further commercial
negotiations. We can now continue discussions with financials institutions
who are interested in the project with the intent of finalizing financing
for the project. Once the financing is in place, we will request the
President of Tunisia to authorize the project. Once financing is in place,
we anticipate the project will be completed and on stream within 8-10
months.
8. Other Opportunities
Centurion has submitted a prequalification document to the Libyan
authorities as part of the New EPSA Round III (recently held conference in
Libya where 40 international companies were invited - Centurion was invited
to attend.) We are awaiting the Libyan authorities to review and approve
our prequalification document. Once this occurs we will submit a bid for
the properties (blocks) of interest to Centurion. After that... let the
negotiation games begin! As this is very premature we cannot place any
reasonable time frame on completing this. We do however expect to submit a
bid to the Libyans in early 2001. Negotiations could take up to one year.
I hope this information helps. For your reference, I usually try to
respond to e-mail within 24 hours, and telephone calls within 3 hours.
Sincerely,
Andre P. Arrata
Centurion Energy International Inc.
Suite 800, 205-5th Avenue SW
Calgary, AB T2P 2V7
Tel: (403) 263-6002
Fax: (403) 263-5998
E-mail: arrataa@centurionenergy.com |
