Oil and gas producer Centurion Energy International doubled Egyptian reserves to 97 million barrels last year, as production surged.

Calgary-based Centurion, whose shares are listed in Toronto and on AIM, increased output from Egypt's Nile Delta from fewer than 20,000 barrels of oil equivalent a day at the end of 2004 to 38,000 daily barrels at the end of last year. The company, run by chief executive Said Arrata, says it also raised proven and probable reserves to 97 million barrels of oil equivalent, more than doubling its resource base.

Year-end cash was 27 per cent down at £16 million. Group earnings would have nearly doubled to £14 million, but for write-downs on discontinued Tunisian operations, which had the result of sending earnings 31 per cent lower to £5.35 million.

This year has brought further developments. Only last week, Centurion agreed a farm-in deal with Shell. Under this agreement, the Anglo-Dutch giant can earn a half share in Centurion's onshore Nile Delta concessions at El Manzala and Al Quantarra for £8.8 million up-front and a commitment to make further payments of up to £132 million if certain recovery and development targets are met.

Favourably mentioned by Growth Company Investor in June 2003 at 57.5p, Centurion shares soared within hail of £8 last year, when we suggested profit-taking. Now 672.5p, up 12.5p today, they could make further progress over the medium term.