Centurion Announces New Gas Discovery in Egypt

Centurion Energy International Inc. on Wednesday said that the Luzi-1 exploration well (Centurion 50%, Shell 50%), which is located on the eastern side of the company's West Manzala concession in the Egyptian Nile Delta, has been drilled to test a prospect on trend with the El Wastani field. The well reached a total depth of 2,847 meters TVDSS and encountered gas-bearing zones in both the Upper and Lower Abu Madi formations, with net pay thicknesses of 10 m and 35 m, respectively.

The Lower Abu Madi formation was tested and flowed at a maximum gas rate of 9.0 mmcf/d with 123 bpd of condensate. The well will now be temporarily suspended with a view to initially completing it as a Lower Abu Madi gas producer. The Upper Abu Madi was not tested in the well to avoid compromising the planned Lower Abu Madi completion, but it anticipated that the Upper pay intervals will be opened for production later in the well's life.

The Hurani-1 exploration well (Centurion 50%, Shell 50%), which is also located on the eastern side of the West Manzala concession, has been drilled to a total depth of 2935 m TVDSS. The well encountered a thick sand interval of 135 m in the Abu Madi and Qawasim formations but no commercial gas shows. It will therefore be plugged and abandoned.

On the El Wastani field, the EW-13 development well (Centurion 100%) has been drilled and successfully completed as a gas producer. This well encountered 25 m of pay in the Lower Abu Madi and 23 m of pay in the Qawasim formation. Before being tied back for production, the well was tested at a maximum rate of 17.3 mmcf/d with 290 bpd of condensate.

Centurion is considering various development options that could allow the early tie-back of 2006 West Manzala gas discoveries for production during 2007. These may involve the use of existing spare capacity in the South East Manzala facilities and the capacity in the Abu Madi facilities, which will become available once the El Wastani Stage III facilities project is completed at year end 2006. Successful implementation of the above options will, however, be contingent on the location and nature of the gas discoveries and technical/commercial development optimization studies.


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