Centurion Spuds the Gelgel-1 Well in Egypt

Centurion Energy International Inc. has spudded the Gelgel-1 exploration well July 27, 2001 and is the first of two exploration wells scheduled to be drilled in the Southern area of the El Manzala Concession.

The Gelgel-1 well is targeting gas reserves in the Kafr El Sheikh formation, the same formation that tested 21.5 Mmcf/d of gas from Centurion's Abu Monkar-1 exploration discovery in 1998. The Gelgel -1 well, located approximately 7 kilometers to the Northwest of Abu Monkar-1, will be drilled to a total depth of approximately 1,200 meters. It is expected the well will reach total depth in approximately 25 days. The well is testing a structure defined by seismic interpretation as a "bright spot" that has proved to be reliable in four discoveries in the concession. (that has proved a reliable indicator of hydrocarbons in four discoveries in the concession.)

Once drilling operations at Gelgel-1 are completed, the rig is scheduled to be moved to the next drilling location, Fasada-1, located nine kilometers to the southeast of Abu Monkar-1. With success of any of the planned two exploratory wells in the Southern area, Centurion will commence its development plan to construct a 55-kilometre pipeline that will connect to the national gas grid pipeline along the Suez Canal. Centurion has an option on the drilling rig to drill up to four additional wells on the concession.

Centurion Energy is the operator and holds a 100% working interest in the 420,000 acre El Manzala concession which is located in the Nile Delta region of Egypt.