Centurion Energy International Inc.

Centurion Energy International Inc.

September 19, 2005 09:30 ET

Centurion Announces Expanded Gas Marketing Strategy in Egypt

CALGARY, ALBERTA--(CCNMatthews - Sept. 19, 2005) - Centurion Energy International Inc. (TSX:CUX)(AIM:CUX.L)

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

Centurion is planning to expand its Egyptian gas sales by developing two new Exploration concessions, West Manzala and West Qantara (Centurion 75% working interest) which comprise 800,000 acres surrounding Centurions significant discoveries in the El Wastani and South Manzala Production Leases.

Centurion's strategy is to develop the new Concessions during 2006 and beyond and assuming exploration success will have the ability to deliver an additional 50,000 boepd of natural gas and associated liquids by the end of 2007 in a phased manner during the development process. Centurion's current target is to increase 2005 exit production by 25,000 boepd during 2006 from new discoveries in Egypt.

Centurion has received verbal assurance from the Egyptian government that additional sales volumes resulting from this expansion could be contracted to the domestic market on a short term basis. When capacity is available from either existing or future LNG ("Liquefied Natural Gas") plants, these volumes will be subsequently contracted to the LNG market. This strategy will allow Centurion to benefit from immediate access to the domestic market without restricting its future gas sales options.

The ultimate market that Centurion would like to access for new reserves is the LNG export market in Egypt as it will enable Centurion to capture world gas pricing for its reserves. This market is rapidly expanding as two LNG plants have already been commissioned and a third plant will be commissioned in 2006. Additional plants have been approved and are in the planning stages.

Centurion has initiated discussions with several companies which are active in LNG projects in Egypt. We are investigating potential participation in existing or planned LNG plants. Updates will be provided as this process continues.

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 of production rates.

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