Centurion Energy International Inc.
TSX : CUX
AIM : CUX.L

Centurion Energy International Inc.

August 11, 2006 08:00 ET

Centurion Acquire Additional Exploration Interests in the Sao Tome Joint Development Zone in West Africa

CALGARY, ALBERTA--(CCNMatthews - Aug. 11, 2006) - Centurion Energy International Inc. (TSX:CUX) (AIM:CUX.L):

Centurion is pleased to announce the acquisition of an additional 2% working interest in Block 4 in the Sao Tome Joint Development Zone (JDZ). This will increase Centurion's interest in the Block to a total of 9.5%.

In order to acquire the additional interest, Centurion will purchase a 25% equity holding in Hercules Petroleum Limited (Hercules) for a cash consideration of US$4.4 million. Since Centurion already owns 75% of the Hercules equity, this company will therefore become a wholly owned Centurion subsidiary once the transaction is completed.

Block 4 covers an area of 212,000 acres and is located in the heart of the JDZ, with water depths of approximately 1800 to 2200 meters. The JDZ represents a potential deepwater extension of the highly prolific Niger delta hydrocarbon province and to date the region has been under explored due to a historic maritime boundary dispute. Over the last few years, however, the JDZ has been opened for exploration and Chevron have recently announced an oil discovery in the JDZ Block 1, which lies immediately to the north of Block 4 and on the same geologic trends.

A 3D seismic survey has already been acquired on Block 4 and the data is viewed as encouraging since it indicates the presence of several large structures with the potential to hold significant reserves volumes. Consequently, the Block 4 Joint Venture is attempting to secure a deepwater rig to drill the first exploration well on the concession in the second half of 2007. This well would be the first of three commitment wells, which are scheduled to be drilled on the Block during the Phase 1 of the exploration licence.

Centurion is a Calgary-based oil and gas exploration and production company, engaged in oil and natural gas activities in Egypt, Tunisia and the Sao Tome JDZ.

For the purposes of AIM Rule 11, this announcement has been reviewed by Centurion Energy's Vice President - Engineering and Production, Robert C. Macaulay, B.Sc., a Petroleum Engineer of more than 20 years' standing, a member of the SPE and a registered Professional Engineer in the Province of Alberta.

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.


Contact Information

  • Centurion Energy International
    Said Arrata
    Chairman and CEO
    (403) 263-6002
    or
    Centurion Energy International
    Dave Thomas
    President and COO
    (403) 263-6002
    or
    Centurion Energy International
    Scott Koyich
    Investor Relations
    (403) 215-5979
    or
    Citigate Dewe Rogerson, London
    Martin Jackson
    +44 207 638 9571
    or
    Citigate Dewe Rogerson, London
    Kate Delahunty
    +44 207 638 9571