Egypt Increases Centurion's Daily Gas Sales Volumes
|Wednesday, October 27, 2004
Centurion Energy International Inc. has received written confirmation from EGAS (the Egyptian National Gas Company) that contract volumes under its existing gas contracts for the El Wastani and South Manzala production leases, located in Egypt's Nile delta region, have been increased to a total of 250 million cubic feet per day (mmcf/d).
Centurion is currently delivering 65 mmcf/d and expects to increase gas deliveries to approximately 90 mmcf/d by December 31, 2004. A further increase in deliveries up to 150 mmcf/d is expected to be achieved by mid 2005 and the company expects to exit 2005 at the full 250 mmcf/d contract amount.
The contracted gas will be produced from dedicated reserves being developed in Centurion's El Wastani and South Manzala Production Leases where an 18 well drilling program is currently underway. Two drilling rigs are under contract to the end of 2005 to carry out this program. The next well in the program, El Wastani East 2 is expected to spud before the end of October, 2004.
Centurion is also finalizing plans for the commencement of exploration on its two new exploration blocks in the Nile delta which were awarded earlier this year. The two blocks, West Manzala, which surrounds the El Wastani Production Lease and West Quantara, which surrounds the South Manzala Production Lease add a total of approximately 800,000 acres in the gas-prone corridor of Northern Egypt. The first activity planned is a 1,000 square kilometer 3D seismic program. 3D seismic has proven to be a very effective tool in Centurion's exploration success in the region. A seismic crew has been located and the program is expected to commence before the end of 2004. These lands were part of the original exploration concession from which the El Wastani and South Manzala Production Leases were selected. Therefore significant 2D seismic and geological interpretation data are already included in Centurion's exploration data and the company's initial estimate of resource potential for the new concessions is approximately 3 TCF of natural gas plus associated liquids.