Centurion Energy International Inc.
TSX : CUX
AIM : CUX

Centurion Energy International Inc.

June 28, 2005 09:30 ET

Centurion Activity Update; Ongoing Drilling Success in Egypt

CALGARY, ALBERTA--(CCNMatthews - June 28, 2005) - Centurion Energy International Inc. (TSX:CUX)(AIM:CUX)

Not for distribution to United States newswire services or for dissemination in the United States.

SUMMARY

Egypt

- El Wastani-6 Development well discovered light oil and gas from a deeper new pay zone in the Qawasim Formation. This is the first occurrence of oil on the El Wastani development lease. The Qawasim pay zone tested at 22 mmscfpd of gas and 935 bpd of light oil.

- Gelgel-5 Development Well tested at 14.2 mmscfpd of dry gas from a new deeper pay zone in the Kafr El Sheik Formation.

- Egyptian production, which is constrained by current processing facility capacity, is approximately 24,000 boepd.

- South Manzala Pipeline Twinning Project on track for August 2005 completion.

- El Wastani Facility Upgrade and Phase One Liquids Processing Plant on track for September 2005 completion.

- El Wastani and South Manzala 2005 drilling program is ongoing and on target to reach gas volume deliverability goal of 250 mmscfpd by December 31, 2005.

- Abu Monkar #3 Exploration Well is expected to be drilled beginning of the 4th Quarter, once the contracted rig is in country.

- West Manzala and West Qantara Exploration 3D seismic program progressing with more than one-third of the program acquired.

- Heavy oil was discovered at the Hoshia-1 well on the West Gharib Permit. The Hoshia-1 well is producing 600 barrels a day of oil. The Hoshia-2 appraisal well is currently drilling in an updip position from Hoshia-1. Oil was also discovered at the Fadl-1 and West Hoshia-1 exploratory wells, and tested 250 bopd and 300 bopd respectively.

Tunisia

- The Medoun-1 well, the first of two wells planned by Petro Canada pursuant to their farm-in on the Mellita Exploration Permit has been plugged and abandoned. A jack-up rig has been contracted to drill the first offshore prospect. The rig is expected to be available in the 4th quarter of 2005.

Mr. Said Arrata states, "We are pleased with the continuing success that we are having with our Egyptian development drilling program. We have now drilled nine wells in the 2004/2005 drilling program with 100% success. We are confident that we will meet our year-end target production level of 45,000 boepd."

EGYPT

El Wastani Production Lease

Testing of El Wastani-6 is now complete. The well tested at a rate of 22 mmscfpd and 935 bpd of light oil from a 56 metres gross pay interval in a deeper new pay zone in the Qawasim formation. This is the first occurrence of light oil in the El Wastani Production lease and drilling plans are underway to appraise the discovery.

A 60 metre gross pay interval was also logged in the Abu Madi Formation but was not tested as the zone has already been proved productive in the field. The well will be tied-in immediately although field production is near the maximum level that current facilities can process. Additional production facilities will be available in September.

The current production from the El Wastani Production Lease is 70 mmscfpd of gas and 3,624 bpd of oil, natural gas liquids and condensate (15,291 boepd).

South El Manzala Production Lease

Testing of Gelgel-5 is now complete. The well tested at a rate of 14.2 mmscfpd from a six metre interval in a deeper new pay zone in the Kafr El Sheik Formation. An additional 13 metre pay section was also encountered in the producing Wastani Formation. The well is currently being tied-in.

The South El Manzala pipeline twinning project is also underway with completion expected in August. The SBDC Rig #50 is currently drilling the Gelgel-7 location and at time of report the well had reached a depth of 751 metres.

The current production from the South El Manzala Production Lease is 50 mmscfpd (8,333 boepd).

Abu Monkar #3 Exploration Well

A new location has been prepared to drill the Abu Monkar #3 Exploration Well. The well will be spudded once the Weathorford Rig is in country, which is expected by the end of the 3rd Quarter of 2005.

West Manzala and West Qantara Blocks

The 3D seismic acquisition program is well underway with almost one-third of the 2,000 square kilometer program completed. Early results of the processing and interpretation are very encouraging and tendering operations are in process for tubulars for up to 33 potential wells in our 2006-2007 drilling program. An exploration well is planned to be drilled in September 2005 to start off the drilling campaign on these blocks.

West Gharib Permit

The operator continues to drill exploratory wells on the permit, discovering additional heavy oil reserves at the Hoshia, Fadl and West Hoshia exploratory locations. The Hoshia-1 discovery well is producing 600 barrels a day of oil from the Rudeis Formation. The Hoshia-2 appraisal well is currently drilling in an updip position from Hoshia-1 and has encountered encouraging hydrocarbon shows in the Rudeis and the deeper Raha and Nubia Formations.

The Fadl-1 exploratory well was initially tested at 250 bopd and the West Hoshia-1 well at 300 bopd. Both wells are currently suspended waiting for testing equipment. In addition, appraisal of the previously discovered South Rahmi is planned.

The operator has submitted Plans Of Development to the government for approval, for the Fadl, Hoshia, West Hoshia, and South Rahmi discoveries.

The Hana Field continues to have stable production currently producing at 1,543 bopd. The operator is proposing to drill 12 exploratory and development wells on that permit during 2005 and 2006, to exit 2005 at 3500 bopd and 4500 bopd in 2006. Centurion has a 30% working interest in the West Gharib Permit.

Drilling Rig Update

Centurion has now contracted four drilling rigs. The rigs will be available to Centurion through the end of 2005 with plans to extend the contracts to the end of 2006.

SBDC Rig # 50 - drilling Gelgel-7 well.

ECDC Rig # 2 - returning to Centurion in early August, after a one-well commitment to another operator.

ECDC Rig # 6 - expected to be available late August.

Weathorford Rig - expected to be available late September.

Centurion expects to have a very active drilling program throughout the balance of 2005 and during 2006 on both of the development leases as well as the new exploration blocks, West Manzala and West Qantara.

TUNISIA

Mellita Permit

The Medoun-1 well was drilled to total depth and did not encounter commercial quantities of hydrocarbons in the Meloussi formation. The well has been plugged and abandoned. This well was a commitment well required to be drilled before September 2005 and was drilled at no cost to Centurion pursuant to the PetroCanada farmout agreement. PetroCanada have advised that they have contracted a jack-up rig to drill the first of five identified offshore structures on the Mellita permit. It is expected that the rig will be available during the 4th Quarter 2005. This rig will test a large Zeebag structure. The Zeebag formation is productive in the area.

Certain statements in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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.

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
    Said S. Arrata
    President and CEO
    +1 403 263 6002
    or
    Centurion Energy International
    Barry W. Swan
    Senior Vice President and CFO
    +1 403 263 6002
    or
    Centurion Energy International
    Scott Koyich
    Investor Relations
    +1 403 215 5979
    or
    Citigate Dewe Rogerson, London
    Martin Jackson
    +44 207 638 9571
    or
    Citigate Dewe Rogerson, London
    Kate Delahunty
    +44 207 638 9571