Dana Gas PJSC, the first regional private-sector gas company in the Middle East today announces that its agreed US$950 million (C$1.15 billion) offer for Toronto and London AIM listed Centurion Energy International Inc (“Centurion Energy”) has been accepted by Centurion Energy shareholders and the acquisition completed as planned.
The successful acquisition of Centurion Energy provides Abu-Dhabi-listed Dana Gas with a strong strategic platform from which to grow its activities in natural gas exploration and production throughout the Middle East Region.
Centurion Energy has announced that at a special meeting of its security-holders to approve the Plan of Arrangement held on 08 January, 2007, 43,867,337 votes representing 94% of the securities voted were voted in favour of the Plan of Arrangement with Dana Gas, and that it had also received formal approval from the Court of Queen’s Bench of Alberta in Canada. Dana Gas announced on 12 November, 2006 that it had entered into an agreement to acquire Centurion Energy, with plans to expand its scope of operations into the GCC region and also into the wider Middle East and North Africa (MENA) region. Centurion Energy shares will be de-listed from Toronto and London AIM on 11 January 2007.
Centurion Energy, which will become a wholly-owned subsidiary and the upstream division of Dana Gas, is currently engaged in exploration and production operations from 10 development leases and 4 exploration licenses in Egypt, Tunisia, and offshore West Africa. With offices in Calgary, London, and Cairo, Centurion ended 2006 with estimated 2P gas reserves of almost 100 million boe, production of over 31,000 boe/ day, expected revenues of approximately US$165 million and expected operating cash flows of approximately US$85 million.
The acquisition also provides Dana Gas with access to a team of over 150 highly skilled multi-disciplinary management and technical staff, with a proven track record in finding, developing and producing natural gas reserves in the Middle East region.
The transaction achieves Dana Gas’s aim of accelerating its growth strategy through the acquisition of exploration and production (E&P) operations in the Middle East and North Africa region. Centurion Energy’s assets complement Dana Gas’s existing gas chain activities and expertise in transportation, processing and marketing of natural gas and represent the entry by Dana Gas into the region’s upstream gas sector. The new acquisition will also expand the Company’s presence in North Africa, and in particular Egypt, where the past decade has seen the country's natural gas and LNG operations attract the attention and focus of many international oil & gas firms. With proven reserves of 70 trillion cubic feet and growing, Egypt is already among the top ten LNG producers in the world.
In a recent announcement, Egypt’s Petroleum Ministry stated that in the past five years gross foreign direct investment (FDI) in oil, gas and petrochemicals amounted to US $9.5 billion. The Ministry added that the target for the next five years is to secure FDI of US $25 billion in petroleum projects. By 2010 annual exports, mainly of gas and petrochemicals, are set to reach US $10 billion.
Dana Gas has announced plans to expand across the Middle East and North Africa (MENA) region into all elements of the natural gas value-chain, including upstream exploration and production; through the midstream transmission and distribution of gas including LNG trading; and downstream into gas-related industries and petrochemicals.
Mr. Hamid Dhiya Jafar, Executive Chairman of Dana Gas, commented:
“We are very pleased with the smooth completion of the Centurion Energy transaction process and welcome its management and staff to the Dana Gas group. This acquisition gives Dana Gas an important strategic entry into the region’s upstream natural gas sector and provides it with a unique growth platform based on a solid base of existing assets and, very importantly, a strong team of experienced exploration and production professionals. We look forward to working with the whole of the Centurion Energy team to maximize the potential of its existing assets, and to expand further through new upstream projects throughout the Gulf and wider Middle East.”
