Centurion Energy International says it should double daily production this year to 43,000-45,000 barrels of oil equivalent.

Following encouraging third-quarter results, AIM-quoted Centurion says it has production of 60,000-70,000 barrels of oil equivalent in sight for 2006, mostly from its El Wastani and South Manzala gas developments in the Nile Delta. Calgary-based Centurion, run by chief executive Said Arrata, increased proven and probable reserves from 51.3 million barrels at the end of 2004 to 88.5 million barrels by June, says consultant Ryder Scott, and the company says it expects a 'significant' further increase by the end of the year.

In addition, Centurion, which is also listed in Toronto, has 75 per cent of the West Manzala and West Qantara blocks, where recent 3D seismic work has increased the company's potential resource from three to five trillion cubic feet of gas. Drilling starts soon and results are expected in the New Year.

Elsewhere in Egypt, Centurion has two blocks at Ganope in the Kom Ombo rift basin, which Arrata and finance director Barry Swan say could be 'very large'. It seems the Egyptian government has estimated a potential two billion-barrel resource.

Centurion has 7.5 per cent with the option to go to ten per cent of Sao Tome's offshore Block 4 in West Africa, where the company argues there could be between 2.5 and three billion barrels. Drilling should start in the second half of 2006 and Arrata expects to spend nearly £12 million over four years.

Claiming combined exploration, development, operating and other costs of $4.18 per barrel of oil equivalent, Centurion would prefer to sell in international markets than in Egypt's price-controlled domestic market. The company says developing liquefied natural gas facilities for export will facilitate this in due course.

Centurion, which is expected by analysts to achieve earnings of 17.5p a share and cashflow of 41p this year, expects to spend £88.5 million next year on its projects. Swan says this can be met by cashflow and bank facilities of some £88 million.

Floated at 56.6p in 2003 and described by Growth Company Investor as 'one of the better quality foreign resource companies listing in London', Centurion later soared above £8, where we suggested partial profit-taking. Now 507.5p, up 2.5p this morning, the shares still have some speculative potential.