Centurion announces new gas discovery in Egypt

The Luzi-1 exploration well (Centurion 50%, Shell 50%) has been drilled on the eastern side of the West Manzala concession to test a prospect on trend with the El Wastani field. The well reached a total depth of 2847 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 which 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 optimisation studies.

For the purposes of AIM Rule 11, this announcement has been reviewed by Centurion Energy's Vice President - Engineering and Production, Robert C. Macaulay, B.Sc., a Petroleum Engineer of more than 20 years' standing, a member of the SPE and a registered Professional Engineer in the Province of Alberta.

Certain statements in this news release constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance in regard to actual future production rates and no assurance that our drilling program will result in increased reserves or production rates. Furthermore, future estimates of production can be affected by many events beyond the control of the Corporation, such as availability of equipment or personnel, the performance of contractors, declines in well performance or well performance failing to meet expectations, regulatory delays, weather delays, equipment failure or other problems encountered in drilling or completion of wells and the timing of completion of facilities. Seismic programs may also experience delays for some of the same reasons.

Statements related to 'reserves' or 'resources' are deemed to be Forward Looking Statements as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be profitably produced in the future.

Boe's disclosed in this news release may be misleading, particularly if used in isolation. A boe conversion ratio of 6mfc:1 boe is based on an energy equivalency conversation method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.