Hello Dan: I wrote to the company with a few questions. Response below: Permission granted . Any comments would be appreciated from all shareholders: Good Dayyyyyyyyy RonaldPlease see below for remarks.
Regards. Andre
-----Original Message-----
From: Ron (Mackers) MacDonell [SMTP:rmdonell@baynet.net]
Sent: Thursday, September 07, 2000 8:28 PM
To: Andre Arrata
Subject: Production and Reserves Estimates
Good Day Mr. Arrata: Very good news today on CUX. Thank you for your timely
news release. I am not an expert on oil but I do have a couple questions. I
can appreciate that your time is quit valuable. and if your schedule
permits these are my questions.
1) From the lastest drill results based on 9000bopd can you estimate the
size of the field your company is dealing with? [Andre Arrata] Until we
can monitor production, reservoir pressure, communication of the reservoir
between AMZ #1 and AMZ #2 it is not possible to determine the exact extent
(i.e. increase or decrees in the original reserve numbers) of the of the
field reserves. At present the reserves of the field (proven and 1/2
probable) are 15 million barrels.
2) How do these results affect the current NAV of 1.92 prior to drilling
this field?
[Andre Arrata] As per one, the NAV does not change until we can better
determine is the reserves of the field increase/decrease. What this does
mean to the company is the "inventory" of reserves that are in the ground
can now be placed on the shelf for sale. In addition, once we start
producing a greater percentage of the 1/2 probable oil currently booked
could move into the proven side. This makes a company more valuable but
may not materially impact the NAV of the company.
3) What is the percentage of OIL and GAS in the field? I understand there
was a few problems encounterd on other fields with GAS.?
[Andre Arrata] The field, based on existing reserve information, is
approximately 5% gas and the remainder oil.
4) Will the GAS be burned off and what effect will this have on the
production of OIL from the field?
[Andre Arrata] The gas will initially be burned off - or flared. This is
standard for Centurion at present with all of our fields in Tunisia. This
is not desirable because as the international gas market develops it would
be better to try and conserve the gas for future sales. To meet this
conservation idea we may need to consider using AMZ#1 as a gas re-injection
well. This will allow us to put the gas back into the reservoir and
conserve it for later. Another positive of the gas re-injection idea is
the energy of the reservoir is also conserved and will ultimately allow us
to produce more of the oil in the reservoir.
5) Does the company still expect to exit the year at 4000bopd/
[Andre Arrata] Yes.
6) What are the company's expectations for the year 2001 as far as
production and drilling new fields goes?
[Andre Arrata] We expect to exit 2001 at 7,000 bopd. We will drill
another three (maybe more) wells in Tunisia. We are currently planning to
drill 5-7 wells in Egypt.
7) In your personal opinion is the lastest trading frenzy just blip on the
radar screen or are we looking a major move for the
stock price and the company as a bigger player in the area?
[Andre Arrata] It's hard for me to answer stock questions because I don't
always follow the hot trends in the market. It seems the market in recent
time has followed flavour of the day or momentum trading rather than true
value investing. Having said that...I do believe that Centurion is poised
to gain recognition in the market place. The recent frenzy seems to have
gotten peoples attention. I think the next bit of drilling in Tunisia and
Egypt will really start to increase the credibility of our growth strategy.
We've been telling the same story for a long time. Know people are
hearing noise. I would hope in the near future they might actually start
listening to the words. We have an excellent base for growth, and people
simply aren't aware of our potential.
8) Are you aware of any Major Institutions and other Major Oil Producers
interested in your company with this lastest find?
[Andre Arrata] Yes. Cannot release details at present. Keep in mind we
have been talking with them for over three months.
9) Does the company have set quotas as to what they can produce under OPEC
or the Government?
[Andre Arrata] No. What we produce and can market we sell.
I thank you for your time and patience. If you can provide any further info
it would be greatly appreciated. I think we understand who fickle markets
can be. :-)
Good Dayyyyyyyyyy Ronald
Ronald (Macker the Hacker :-)) MacDonell
PS: Macker the Hacker comes from friends on the golf course and it has
stuck for sometime even though my handi cap is in the single digits :-)
[Andre Arrata]
Ronald. Thanks for continuing to follow Centurion. I hope realize I
didn't give you the full scoop on the new discovery, but the reality of the
situation is we don't know the full extent of the test as yet. Only
producing the well (converting inventory to cash flow) and drilling the
next wells on the Al Manzah field can tell us with any certainty.
I look forward to hearing from you in the near future.
Sincerely,
Andre Arrata
P.S. I'm off to the golf course today to work on my +25 handicap.... I
like to believe it indicates I'm working hard in the office...but the truth
of my poor golf swing hurts. |
