Centurion Energy International Inc.: Al Manzah Field Update.Business Editors CALGARY, Alberta--(BUSINESS WIRE)--Jan. 12, 2001 Centurion Energy International Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CUX CUX Corporate University Xchange (provides education research, benchmarking and advisory services to corporate America) .) announces that the Al Manzah #2 well will be shut-in after filling storage tanks with sufficient oil to facilitate the drilling of the next well planned for the Al Manzah field, Al Manzah #3. The decision to shut-in the Al Manzah #2 well at this time is a precautionary pre·cau·tion·ar·y also pre·cau·tion·al adj. Of, relating to, or constituting a precaution: taking precautionary measures; gave precautionary advice. Adj. 1. measure to ensure that we do not impair im·pair tr.v. im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. the reservoir energy of the field by flaring more gas. The Al Manzah #2 well started to exhibit a higher gas to oil ratio in early January and has since seen gas rates reach flaring levels above accepted guidelines. The well has been choked back and is currently producing at 700 bopd with a gas / oil ratio of 3,900. The increase in the gas/oil ratio is due to the volatile nature of the high gravity oil in the reservoir which has resulted in gas accumulating at the top of the reservoir and encroaching into the oil zone through the natural fracturing in the Bou Dabbous formation. Preparations for drilling the Al Manzah #3 well, which will test the eastern half of the Al Manzah structure, are nearing completion. The well will be drilled deeper into the reservoir to avoid the gas encroachment An illegal intrusion in a highway or navigable river, with or without obstruction. An encroachment upon a street or highway is a fixture, such as a wall or fence, which illegally intrudes into or invades the highway or encloses a portion of it, diminishing its width or area, but . The Al Manzah #3 well will also be drilled horizontally using under-balanced drilling techniques successfully employed in the drilling of the Al Manzah #2 well. Contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the drilling of a successful Al Manzah #3 well, consideration will be given to drilling a new lateral from the Al Manzah #2 well bore deeper into the formation. A gas re-injection scheme will also be considered. It is important to note that the Al Manzah field has produced over 700,000 barrels of oil since first production averaging over 2,000 bopd. The gross revenue from this production was approximately US$18 million versus well costs of US$4 million. Current seismic interpretation suggests that there is a likelihood of a further 200 meters of potentially exploitable reservoir and, hence, additional potential drilling locations. Certain statements in this press release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The information in this press release is based on Centurion Energy's current information, expectations and assumptions, and is subject to a number of uncertainties and risks that could cause the actual results to differ materially from those anticipated. |
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