Centurion Acquires Strategic Egyptian Exploration and Producing Properties
CALGARY, ALBERTA--(CCNMatthews - Feb. 22, 2006) -
Not for distribution to United States newswire services or for dissemination in the United States.
Centurion Energy International Inc. (TSE:CUX) (AIM:CUX.L) announces that it has entered into an agreement for the acquisition of a private U.S. corporation. The acquisition includes operated properties in Egypt's Nile Delta region and in Texas, USA. After closing, this acquisition will add approximately 8,200 Boe per day to Centurion's production.
The acquisition of additional landholdings near Centurion's existing Nile Delta gas play is an important element in Centurion's stated goal of becoming a significant player in Egypt's growing LNG industry.
The Egyptian properties include interests ranging between 50% and 54% in three Egyptian concessions and seven development leases comprising 1.3 million acres (653,000 acres, net). The concessions, El Mansoura, Qantara and S.E. El Mansoura, are located in the Nile Delta region of northern Egypt and are contiguous and immediately southwest of Centurion's existing West Manzala and West Qantara Concessions.
The properties are located in the gas prone Nile Delta region and include 4 producing gas fields as well as a producing oilfield.
Current production is approximately 60 mmscf/day (30 mmscf/day net) and 1,250 bbls/d of oil and condensate (625 net). These properties are an important strategic addition to Centurion's Egyptian landholdings and include production and exploration prospects in reservoirs and traps similar to or tested by Centurion's current Egyptian production and exploration focus.
Several gas and condensate play trends have been identified on the new acreage with multi-zone objectives.
The El Mansoura concession has extensive 3D seismic coverage.
The acquisition also includes interests in 9 producing gas wells located northeast of Houston, Texas, USA. The current working interest share of production is approximately 14 mmscf/day, and 250 bbls/d of oil and condensate.
The acquisition is expected to be completed by April 30, 2006. Centurion is buying all of the shares of a private US corporation for cash consideration of US$ 225 million plus working capital and inventory less debt. A deposit of US$11.25 million has been paid and is subject to forfeiture in the event that Centurion does not close for reasons attributable to Centurion. The acquisition is subject to a provision whereby the directors of the private company may, in exercising their fiduciary duties, accept a higher offer prior to the scheduled closing. However, before doing so, the private company must provide Centurion at least three business days' prior notice of its intention to terminate the agreement and during such period negotiate in good faith with Centurion regarding such changes as Centurion may propose. Following the negotiation period, the private company may accept a higher offer if it is superior to Centurion's and the company pays Centurion a termination fee of US$7.35 million.
It is anticipated that the purchase will be funded through a combination of existing working capital supplemented by a bridge financing.
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. 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.
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
Said S. Arrata
President and CEO
(403) 263-6002
or
Centurion Energy International
Barry W. Swan
Senior Vice President and CFO
(403) 263-6002
or
Centurion Energy International
Scott Koyich
Investor Relations
(403) 215-5979
Website: www.centurionenergy.com
or
Citigate Dewe Rogerson, London
Martin Jackson
+44 207 638 9571
or
Citigate Dewe Rogerson, London
Rachel Lankester
+44 207 638 9571 |
