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

Centurion Energy International Inc.

April 11, 2006 08:30 ET

Centurion Notified of Superior Offer on Egyptian Property Acquisition

CALGARY, ALBERTA--(CCNMatthews - April 11, 2006) - Centurion Energy International Inc. (TSX:CUX)(AIM:CUX.L) ("Centurion") announced in a press release of February 22, 2006, that it had entered into an agreement (the "Purchase Agreement") to acquire all of the shares of a U.S. private company that holds oil and gas interests primarily in Egypt and also in Texas. Centurion announces that the U.S. private corporation has provided notice that it has received an unsolicited third party offer which the board of directors of the U.S. private corporation considers to be a "superior proposal" as such term is defined in the Purchase Agreement. Pursuant to the terms of the Purchase Agreement, Centurion has had three days since receiving such notice in which to improve the terms of the agreement with the U.S. private corporation and has advised the U.S. private corporation that it does not intend to increase its offer. Centurion therefore anticipates that the U.S. private corporation will exercise its rights to terminate the Purchase Agreement.

Under the terms of the existing agreement, where the private U.S. corporation exercises its rights to terminate the agreement based upon the acceptance of a superior proposal, Centurion is entitled to receive the return of its $US 11.25 million deposit plus a termination fee of $US 7.35 million from the private U.S. corporation.

Certain statements in this new 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 that even though it has given a notice of its intention to terminate, that the U.S. private corporation will exercise its right of termination although Centurion has no reason to believe it will not do so.

Contact Information

  • 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
    or
    Citigate Dewe Rogerson, London
    Martin Jackson
    +44 207 638 9571
    or
    Citigate Dewe Rogerson, London
    Rachel Lankester
    +44 207 638 9571