Centurion's 1Q03 earnings up on Tunisian, Egyptian operations
Canada’s Centurion Energy International Inc. has reported its financial results for the three months ending March 31, 2003. Earnings for Q1/03 were $4.175 million, compared to $500,000 for Q1/02. Cash flow from operations for Q1/03 was $8.841 million, compared to $2.542 million for Q1/02. The results for Q1 continue to reflect strong cash flow and earnings, according to Centurion President and CEO Said Arrata.
Contributing factors were the continued high levels of production from the Al-Manzah field in Tunisia and the El-Wastani field in Egypt and the high oil prices received. Production averaged 5,490 barrels of oil equivalent per day (boepd) during the quarter.
The SEEB power plant was completed during Q1 and final government approvals were received after quarter end allowing the commencement of commercial operations on May 9, 2003, adding approximately 700 boepd to production levels.
The Societe D'Electricite D'El Bibane (SEEB) Electric Generating Power Plant was built in Tunisia in a joint development with Caterpillar Power Ventures International Inc., a subsidiary of Caterpillar Inc. and CMI, a Boston-based independent power developer. Centurion is a 50 percent owner and the Caterpillar/ CMI consortium owns the other 50 percent.
The South Manzala gas development in Egypt is well under way with first gas production expected during Q3. The project to bring an additional 35 million cubic feet per day of natural gas to market from the South Manzala gas fields is well underway. The eight-inch pipeline construction is continuing. Welding has been completed on 30 kilometers out of the total 32-kilometer pipeline length.
The work is focused on the areas where rice crops will be planted, in order to minimize the impact on farming operations. Design of the gathering system to tie the three gas fields into the central processing facility has been completed and construction will follow completion of the eight-inch sales gas pipeline.
The central processing facility (CPF) is designed to process and compress 35 million standard cubic feet (MMscf) per day of sales gas from the three gas fields. The CPF consists of an inlet separator, a 1,500 horsepower gas compressor and a gas dehydrator with associated metering and utilities. The contract for fabrication of the process equipment for the CPF has been awarded to Presson-Enerflex of Nisku, Alberta, on a turnkey basis. Fabrication of the plant is about 50 percent complete.
Upon completion of the pipeline, gathering system and CPF, which is expected during the third quarter, the additional gas production will add approximately 6,000 barrels of oil equivalent to Centurion's daily production, allowing the company to break through the 10,000 boepd plateau.
Production from the El-Wastani field continues at strong rates with gas averaging approximately 11.4 mmscf per day of sales gas and 700 bopd of condensate and natural gas liquids.
Production from the Al-Manzah field continued to exceed previous engineering estimates. Average daily production for the field for Q1 was 1,845 bopd (1,384 net) and the field has now produced more than 1.3 million barrels. Current production is 1,965 bopd (1,475 net) and pressures remain strong with no water produced.
With a market for gas production, production rates were ramped up for El-Biban, increasing the oil producing rate from approximately 750 bopd (550 net) average for Q1 to its current rate of approximately 940 bopd (695 net). Centurion's ongoing simulation study on the El-Biban field indicates that a second development well would accelerate oil recoveries from the existing reserves and could add new reserves of approximately 1.4 million barrels. A well could be drilled late this year depending on rig availability.
The Ezzaouia and Robbana fields continue to produce at predicted rates. Two step out wells are planned in the third quarter to test a southern extension of the Ezzaouia field mapped from our 2002 3D seismic program. An interesting exploration play has also been mapped on the Robbana Concession area, which is being evaluated further. — (menareport.com)
© 2003 Mena Report (www.menareport.com)