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.
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