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

Centurion Energy International Inc.

September 13, 2005 09:30 ET

Centurion Increases Egyptian Reserves by 95%

CALGARY, ALBERTA--(CCNMatthews - Sept. 13, 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.

A reserve update as at June 30, 2005 has been prepared by Ryder Scott Petroleum Consultants. Centurion has increased its proved and probable reserves (before deduction of royalties, production taxes or their equivalent) in Egypt from 45.3 million boe at December 31, 2004 to 88.5 million boe as at June 30, 2005, an increase of 95%. Reserves at June 30, 2005 include 414 bcf of natural gas and 19.5 million barrels of oil and natural gas liquids.

The following tables update proved and probable reserves and net present value of future cash flows presented in Centurion's Annual Information Form dated March 28, 2005, for the fiscal year ended December 31, 2004. Information contained in the following tables has been presented in accordance with NI 51-101:



Summary of Oil and Gas Reserves
as at June 30, 2005

Constant Prices And Costs(1)


Oil NGLs Natural Gas
---------------------------------------------------
Gross(2) Net(3) Gross(2) Net(3) Gross(2) Net(3)
(mmstb) (mmstb) (mmstb) (mmstb) (bcf) (bcf)
---------------------------------------------------
EGYPT
(equals COMPANY
TOTAL)
Proved Developed
Producing 0.57 0.29 10.39 3.60 231.33 80.81
Proved Developed
Non-Producing 0.04 0.02 1.17 0.32 36.94 10.57
Proved
Undeveloped 0 0 0 0 0 0
Total Proved 0.61 0.31 11.56 3.92 268.27 91.39
Probable
Additional 0.30 0.15 7.04 2.15 145.94 44.30
---------------------------------------------------
Proved
and Probable 0.91 0.46 18.60 6.07 414.21 135.69

---------------------------------------------------------------------


Notes:

(1) Reserves reflected in this table have been based on a constant price and cost assumptions utilizing an average Brent crude oil price of US$55.35 per barrel (the actual price in effect 30 June 2005). A constant gas price has been utilized for both the El Wastani Development Lease area and the South El Manzala Development Lease area based on their respective gas purchase contracts; the contracts stipulate a price of US$2.65 per mmbtu changing to US$2.50 per mmbtu based on production.

(2) Gross reserves consist of Centurion's Participating Interest share of reserves before deduction of all royalties, production taxes or their equivalent.

(3) Net reserves consist of Centurion's Participating Interest share of reserves after deduction of all royalties, production taxes or their equivalent but before deduction of income taxes.



Summary of Net Present Value of Future Net Reserves
as at June 30, 2005
Constant Pricing and Costs(1)
(In Cdn$ millions)(2)

Before Tax
Discounted At
-----------------------------------------
0% 5% 10% 15% 20%
-----------------------------------------
EGYPT
(equals COMPANY TOTAL)
Proved Developed
Producing 358.90 296.30 248.73 211.75 182.46
Proved Developed
Non-Producing 43.41 37.29 32.50 28.66 25.51
Proved Undeveloped 0 0 0 0 0
Total Proved 402.31 333.59 281.23 240.41 207.97
Probable Additional 201.46 137.46 96.51 69.34 50.72
-----------------------------------------
Proved and Probable 603.77 471.05 377.74 309.75 258.69


After Tax
Discounted At
-----------------------------------------
0% 5% 10% 15% 20%
-----------------------------------------
EGYPT
(equals COMPANY TOTAL)
Proved Developed
Producing 358.90 296.30 248.73 211.75 182.46
Proved Developed
Non-Producing 43.41 37.29 32.50 28.66 25.51
Proved Undeveloped 0 0 0 0 0
Total Proved 402.31 333.59 281.23 240.41 207.97
Probable Additional 201.46 137.46 96.51 69.34 50.72
-----------------------------------------
Proved and Probable 603.77 471.05 377.74 309.75 258.69


Notes:

(1) Reserves reflected in this table have been based on a constant price and cost assumptions utilizing an average Brent crude oil price of US$55.35 per barrel (the actual price in effect 30 June 2005). A constant gas price has been utilized for both the El Wastani Development Lease area and the South El Manzala Development Lease area based on their respective gas purchase contracts; the contracts stipulate a price of US$2.65 per mmbtu changing to US$2.50 per mmbtu based on production.

(2) All references are in Canadian Dollars. An exchange rate of Cdn$1.00 equal to US$0.816 has been utilized herein (the value in effect on 30 June 2005).

The substantial increase in Centurion's reserves updated to June 30, 2005 reflects the continuing drilling successes that are being achieved in Egypt. Our drilling program will continue to the end of fiscal 2005 and further reserve additions are expected. Centurion is continuing to drill the development wells necessary to achieve its projected 2005 exit production rate of 45,000 boepd.

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)
    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)
    Email: info@centurionenergy.com
    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)