Centurion Energy Signs Egyptian Gas Agreement

Centurion Energy, through its wholly owned subsidiary Centurion Petroleum, has reached agreement with the Egyptian government to sell 35 million cubic feet per day from its gas fields located in the southern area of Centurion's El Manzala Concession which is located in the Nile Delta region of Egypt.

When brought on stream, the new production will add approximately 6,000 BOEPD to Centurion's daily production levels which are currently about 5,300 BOEPD.

The agreement provides a price of $2.65 US per MMBTU until full cost recovery and $2.50 per MMBTU thereafter if the price of Brent crude oil is $20 US or greater. In the event of Brent crude oil prices being less than $20 US, the gas price is reduced on a sliding scale to a floor price of $1.50 US per MMBTU at a Brent crude oil price of $10 US per barrel.

Signing a contract for additional gas sales of 35 MMCF per day will allow Centurion to initiate steps towards the commencement of construction of a 35 kilometer eight-inch pipe line that will tie the southern area of the El Manzala Concession into the Egyptian national gas grid. A central processing facility is planned to be located near Centurion's Sherbean gas field with plans to tie in the Abu Monkar and Gelgel gas fields, all of which are located within a seven kilometer radius. Preliminary surveys have already been done and the pipe tendering is underway. Centurion hopes to have the El Manzala South area fields on stream by mid 2003.