Centurion Energy Moving Forward with Egyptian Exploration

Centurion Energy International says that the Luzi-1 exploration well (Centurion 50%, Shell 50%) has been spudded in the West El Manzala Concession, targeting a prospect on trend with the existing El Wastani field.

During early drilling, the well encountered gas in the El Wastani formation at a depth of 1009 meters, indicating that this formation is a potential reservoir target in this area of the concession. The interval is being evaluated with open hole logs and the well will then drill ahead to test the potential in the deeper primary exploration target formations, the Abu Madi and Qawasim.

Additional exploration wells are now planned on the eastern side of the West El Manzala Concession, on the same type of geologic trend as the Luzi-1 well. Subsequently, in the autumn, exploration drilling will recommence in the western area of the Concession to test the deeper high pressure Lower Qawasim and Sidi Salim formations.

Concurrent with the exploration activity, the original El Wastani-2 development well has been successfully sidetracked and deepened to test the Lower Abu Madi and Qawasim formations. The well encountered a reservoir interval at a depth of 2731 meters and found 66 meters of net pay. Initially, the top section of the Qawasim has been perforated and on test, the well flowed at a rate of 10 mmcf/d with over 170 bpd of condensate. The well has now been tied back for production.

The El Wastani-13 development well is currently drilling ahead at a depth of 2970 meters in the Qawasim formation and good gas shows have been encountered in the Lower Abu Madi and Qawasim sections drilled so far.

The company's current Egyptian production rate is approximately 34,000 boepd. Centurion will be limited to this facility constrained production rate until year end 2006 when the El Wastani Central Processing Facilities upgrade should be completed. Upon completion of the facility upgrade, production is expected to increase to over 38,000 boepd.


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