Shell Egypt West Manzala GmbH and Shell Egypt West Qantara GmbH (together “Shell”) are pleased to announce the signing of a Farm-in Agreement with Centurion Energy International Inc. [(“Centurion”) through which Shell will acquire a 50 per cent interest in two Centurion-operated exploration concessions in the Nile Delta onshore Egypt, namely the West El Manzala and West El Qantara concessions (the “concessions”). Subject to approval from the relevant authorities and successfull outcome of exploration, Shell and Centurion would potentially co-operate in developing LNG opportunities if threshold quantities of natural gas are discovered on the concessions. Future development considerations will depend on success of the exploration program.
The farm-out to Shell is subject to obtaining the government approvals for a transfer that are required under the Concessions agreements and upon completion by Centurion of the previously announced agreement to acquire the 25% interest in the Concessions owned by CTIP Oil & Gas s.r.l (“CTIP”).
The first well in the initial five well exploration program was spudded on February 7, 2006.
Exploration and appraisal wells are planned in the 2006 capital program for the two concessions. The concessions each have an initial three year exploration term with the option to extend the exploration term by two additional three year terms.
Ceri Powell, Vice President Exploration of Shell Exploration & Production Middle East, said today: “We are excited about accessing these exploration concessions. We look forward to working with Centurion in the onshore Nile Delta area."