|Centurion Energy International Inc
||COM SHS NPV
||EPS - Basic
||Market Cap (m)
Real-Time news about Cent.Energy Int (London Stock Exchange): 0 recent articles
|cwa1: Hmmmmmm. Apart from the share price, what's up here?|
|cwa1: Oilbarrel comment:-
It Turns Out To Be Third Time Lucky For Centurion Energy As The Luzi-1 Well Comes Good In The West El Manzala Exploration Concession
A month ago we asked whether it would be third time lucky for Centurion Energy. This has now turned out to be the case for the AIM listed company which is also quoted on the Toronto Stock Exchange. The company has announced some good news from its Egyptian Nile Delta acreage. The Luzi-1 exploration well (Centurion 50 per cent, Shell 50 per cent) has been drilled on the eastern side of the West El Manzala concession to test a prospect on trend with the El Wastani field. The well reached a total depth of 2,847 metres and encountered gas bearing zones in both the Upper and Lower Abu Madi formations, with net pay thicknesses of 10 metres and 35 metres respectively.
The Lower Abu Madi formation was tested and flowed at a maximum gas rate of 9 million cubic feet of gas per day with 123 barrels 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 is anticipated that the upper pay intervals will be opened for production later in the well's life.
The Hurani-1 exploration well (Centurion 50 per cent, Shell 50 per cent), which is also located on the eastern side of the West Manzala concession, has been drilled to a total depth of 2,935 metres. The well encountered a thick sand interval of 135 metres in the Abu Madi and Qawasim formations but no commercial gas shows. It will therefore be plugged and abandoned. This is overshadowed by the success of the Luzi-1 and Centurion will be hoping this will herald a change in the group's fortunes, which have been in the doldrums in recent months.
Centurion is a solid company with a production base of 34,000 barrels of oil equivalent per day from its Egyptian properties alone. It also has highly promising exploration plays which it understands well and in which it is newly partnered by the super major Shell.
In the past four months, there have been missed production targets in Egypt, where there have been delays commissioning new processing facilities on its 100 per cent owned El Wastani field and problems with water influx on the South El Manzala wells. The first two wells on the El Manzala exploration programme (Luzi-1 was the third) were a disappointment. Al Hamra-1 and El Deeb-1, drilled in partnership with Shell, found sub-commercial quantities in the Qawasim formation while high pressures and mechanical limitations meant the lower Qawasim and Sid Salim formations could not be tested.
Moreover, in April, Centurion failed in its US$265 million bid to acquire Merton Petroleum, when Edinburgh's Melrose Resources trumped its offer to scoop the privately-owned US firm with the Nile Delta asset base. Centurion was paid a US$7.35 million termination fee as compensation but the bid failed to impress investors. All in all it has not been a happy period and in the four months since March the share price has fallen by over half from a high of 700p.
Shell is keeping the faith. It is paying US$15 million in cash upfront and will pay 50 per cent of exploration and development costs to earn 50 per cent of the West El Manzala field. With the initial five well programme now showing some positive results, Shell should be persuaded to stay in the project and this will trigger further payments of US$20 million. The Luzi-1 well has successfully tested a prospect, which was on trend with the El Wastani field. Luzi-1 earlier encountered gas in the El Wastani formation. This exploration well will be followed up with further wells on the eastern side of the concession to test Luzi type prospects followed by exploration drilling on the western side to test the deeper high-pressure Lower Qawasim and Sidi Salim formations.
Exploration aside, the company has been developing the multiple reservoirs of the El Wastani field. El Wastani-10 was completed in the Lower Abu Madi formation and brought onstream at a rate of 6 million cubic feet of gas per day plus 150 barrels of condensate. El Wastani-12 reached a total depth of 3,109 metres in the Qawasim formation and yielded commercial gas from a new separate accumulation from existing Qawasim producers. The upper interval was placed on production after testing 16 million cf/d of gas and 96 bpd of condensate.
We now learn that the El Wastani-13 development well (Centurion 100 per cent) has been drilled and successfully completed as a gas producer. The well encountered field 25 metres of pay in the Lower Abu Madi and 23 metres of pay in the Qawasim formation. Before being tied back for production, the well was tested at a maximum rate of 17.3 million cubic feet of gas per day with 290 barrels per day of condensate.|
Well done on your timing previously. Picking CUX up at below 300p (296p or something like that).
Sitting on a nice wee profit now.
The CUX price always seems to lag the TSE price. Must be so the mm won't get caught out by currency swings or movement of CUX on the TSE when the LSE is shut.
A narrow spread though.
Am not buying any more. My UEN shares have finally sprung to life. Now I just need to wait for my biggest holding EEN to start moving in earnest!
|lonrho: I bought my cux shares in Canada,the spread is a lot smaller.Idon't have any leverage and based on the last few months share price volatility in junior oils and miners i don't intend getting any.Ithink the hedge funds have been driving down shares to force those on leverage to sell and pick up cheap shares.|
|simon54: From StockHouse:
Centurion Energy International "buy"
Tuesday, June 13, 2006 12:32:52 PM ET
NEW YORK, June 13 (newratings.com) - Analysts at UBS maintain their "buy" rating on Centurion Energy International (ticker: CUX.TO). The target price is set to C$15.
In a research note published this morning, the analysts mention that early results at the Luzi-1 well indicates new gas exploration opportunities and that the prospects of the block would be revealed after the drilling of deeper targets. The exploration drilling programme at W El Manzala is expected to continue in the east, with development wells in the El Wastani lease area, the analysts say. Centurion Energy's current share price does not reflect the company's exploration potential, UBS adds.|
The bid is now at C$13.48, somewhere around 653p.
Will be buying first thing if CUXs LSE share price doesn't react.
|hgiderek: I've looked back thru' the threads some way, but I haven't found an analysis of why our market cap./share price is so low - compared with, say Tullow. Has anyone got a better head for accounts than me (not too difficult there guys).
This seems an excellent output / prospect company, so why is the market not recognising it ? Or has it seen things I am missing ?
I may have to buy back into UK-companies to get the returns !|
|simonbroughton: Another excellent trading statement, another yawn from the market and another mark down in the share price. This does not make sense. Sooner or later CUX is due a re rating.|
|haideralifool: Out of curiousity, how do you manipulate a share price on a long term basis?
Tree shaking I can understand and have seen on numerous occasions. But over the long term?
I suppose some people may have felt that a period of little or no newsflow would be good to short the stock - but that's just taking advantage of a situation, surely, and not manipulation.|
|abcd1234: so, how much is this worth to the share price
Centurion Energy share price data is direct from the London Stock Exchange