Centurion Increases Land Holdings in Egypt
Centurion Energy International has entered into an agreement with CTIP Oil and Gas Limited, a private United Arab Emirates company pursuant to which Centurion will acquire a 25% participating interest in the West El Manzala Concession and West El Qantara Concessions, located in the Nile Delta region of the Arab Republic of Egypt. Following the closing of this acquisition, Centurion will hold a 100% participating interest in each of these Concessions.
Under the terms of the acquisition agreement, Centurion has agreed to pay US$20 million and to issue 1,000,000 common shares at a price of Cdn$12.10 per share for the concession interests. Centurion has agreed to pay additional payments that could total up to a further US$25 million as and when specific discovery volumes and development objectives are met. Centurion has also granted a three percent net profits interest to CTIP on future production from the Concessions.
Closing of the transaction, which is subject to Egyptian government approval, is expected to occur within the next thirty to sixty days. The acquisition price will be funded by a combination of debt and working capital.
Said Arrata states, "The acquisition of the balance of the interest in the West Manzala and West Qantara Concessions, in addition to the previously announced deal to acquire a 50% interest in an additional 1.3 million acres in three concessions adjacent to our Nile Delta land holdings, is consistent with our gas marketing strategy. Controlling a significant land base in the Nile Delta gas play will allow Centurion to access Egypt's growing LNG industry."