Centurion Energy International Inc.

Centurion Energy International Inc.

February 28, 2005 09:30 ET

Centurion Signs an Agreement for the Sale of its Tunisian Producing Properties


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CENTURION ENERGY INTERNATIONAL INC.

TSX, AIM SYMBOL: CUX

FEBRUARY 28, 2005 - 09:30 ET

Centurion Signs an Agreement for the Sale of its
Tunisian Producing Properties

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

SALE OF ASSETS

As part of its strategy to concentrate corporate activity on higher
impact exploration and development, Centurion Energy International Inc.
("Centurion") is pleased to announce that it has entered into an
agreement with Candax Energy Inc. ("Candax") for the sale of the
Company's Tunisian producing properties for a purchase price of $41.2
million (Canadian funds) plus working capital adjustments effective
January 1, 2005. The sale is anticipated to close by April 30, 2005,
subject to certain conditions including successful purchaser financing
and the receipt of various third party and government consents.

Centurion's ownership in the Mellita Permit in Tunisia and the
accompanying PetroCanada farm-out are not included in the sale of the
Tunisian assets. Additionally, Centurion retains the right to
participate for up to 50% of Candax's resultant working interest in any
Triassic exploration well drilled at either or both of the Ezzaouia and
El Bibane concessions.

Candax has agreed to purchase Centurion's 100% owned subsidiaries that
operate in Tunisia which own a 31.4% working interest in the Ezzaouia
concession and the Ezzaouia oilfield; a 73.8% working interest in the El
Bibane concession and the El Bibane oil field; an 80% working interest
in the Robanna concession and the Robanna oil field and a 75% working
interest in the Al Manzah concession and the Al Manzah oil field. Also
included in the purchase is the 50% share ownership in the SEEB power
plant.

Production from the fields being sold at the January 1, 2005 effective
date totaled approximately 1,200 bopd and 4.4 mmscf/day of natural gas
production (approximately 1,900 boepd).

The divestiture of mature producing properties in Tunisia is part of
Centurion's strategy to concentrate its financial and manpower resources
on higher impact plays. The Company has extensive exploration and
development opportunities in Egypt in its Nile Delta natural gas and
condensate blocks as well as other exploration prospects in the West
Gharib block, onshore near the Red Sea, and the Ganope Block 2 in Upper
Egypt. The company is continuing to pursue a new country entry in the
African continent and as mentioned above has still retained
participation in its potentially high impact plays in Tunisia; the
Mellita Permit and the right to participate in the Triassic plays at
Ezzaouia and El Bibane.

OPERATIONS UPDATE

El Wastani - 4 Test Results

The El Wastani - 4 well located approximately 1.5 km northwest of El
Wastani - 3 and one km north of El Wastani - 1 reached total depth on
January 22, 2005. A service rig was then mobilized and the well tested
15 mmscf/day of natural gas and 411 boepd of condensate from a 19 meter
perforated section in the lower Abu Madi sands. The well will be tied in
shortly to the El Wastani field facilities, but production will be
prorated with other El Wastani field wells as the available additional
throughput capacity of the field facilities only allows for an increase
from the current 42 mmscf/day to a new level of 45-50 mmscf/day.

El Wastani - 9 Spuds

The drilling rig used for the El Wastani - 4 well was moved to the El
Wastani - 9 location and the well spudded on February 15, 2005 and is
currently drilling ahead.

Abu Monkar - 2 Exploration Well

The Abu Monkar - 2 well is being drilled to a target in the Sidi Salem
formation. The well reached the top of the targeted formation but has
encountered mechanical problems resulting in the drill bit becoming
stuck in the hole. The well was already cased to within 350 meters of
the problem area and an operation is underway to side-track the well and
continue drilling to its planned total depth in the Sidi Salem
formation. It is expected that it will take approximately 2 weeks to
reach total depth in the well. The Abu Monkar - 2 well is the first well
drilled on the South El Manzala development lease to target deeper and
potentially liquids rich natural gas.

3D Seismic Program - West Manzala and West Qantara Exploration Blocks

Centurion has expanded its plans for 3D seismic acquisition on the two
new Nile Delta concessions. The program has been expanded from 1,000
square kilometers to 2,000 square kilometers at an estimated cost of $US
20 million for the total program. The crews have started the program and
the processing of the 3D seismic data will be done concurrently as the
acquisition takes place. Depending on rig availability, the Company is
planning to drill at least one well on a 3D seismically defined location
in the new concessions during 2005.

Current Company Production Levels

Assuming the sale of the Tunisian producing properties closes as
anticipated and because the sale has a January 1, 2005 effective date,
the current level of production from Centurion's Egyptian properties is
the total production level for the Company. Current production consists
of 42 mmscf/day of natural gas plus 2,800 boepd of condensate and
natural gas liquids from the El Wastani development lease; 59 mmscf/day
of natural gas from the South El Manzala development lease and 590 bopd
of oil from the Hana field. Total production is approximately 20,200
boepd without Tunisian production.

Centurion Energy International Inc. is a Calgary based oil and gas
exploration and development company engaged in the exploration,
development and production of oil and natural gas in Egypt and Tunisia.

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

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.

Boe's disclosed in this new release may be misleading, particularly if
used in isolation. A boe conversion ratio of 6mcf:1 boe is based on an
energy equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Centurion Energy International Inc.
    Said S. Arrata
    President and CEO
    (403) 263-6002
    (403) 263-5998 (FAX)
    or
    Centurion Energy International Inc.
    Barry W. Swan
    Senior Vice President and CFO
    (403) 263-6002
    (403) 263-5998 (FAX)
    or
    Scott Koyich
    Investor Relations
    (403) 215-5979
    E-mail: info@centurionenergy.com
    Website: www.centurionenergy.com