Candax Energy Inc CXEYF

Wild thoughts

[crackiedog]

For something way out there (or maybe not) just read the following article about the failure of Centurion's deal to expand its land base in Egypt. Maybe the "superior offer" has a CAX connection? We know they are looking to make a deal and maybe they have teamed up with Mitsubishi or someone else, in some sort of joint bid for this company. Of course this is only pure speculation. Any thoughts? Crackie, Centurion's bid to expand Egyptian land base fails after 'superior proposal' April 11, 2006, 4:23 pm CALGARY (CP) - A deal by Centurion Energy International Inc. (TSE:CUX) to expand its land base in Egypt fell through when the private company it planned to buy for $225 million US received a "superior proposal." Calgary-based Centurion told investors Tuesday that its plans to purchase the unidentified, U.S.-based oil company were foiled by an unsolicited third-party bid that was deemed to be a better offer. Under Centurion's initial deal with the company, Centurion had three days to present a higher bid but did not increase its offer. Centurion expected to receive the return of its $11.25 million US deposit, plus a termination fee of $7.35 million US. Centurion management could not be reached for comment Tuesday. Although the company is headquartered in Canada, it has all its exploration and production in Egypt, West Africa and Tunisia. The failed deal included properties in the Nile Delta and in Texas that would have added about 8,200 barrels of oil equivalent per day to Centurion's production. When the deal was announced in February, it said the landholdings were near its existing Nile Delta gas play and "an important element in Centurion's stated goal of becoming a significant player in Egypt's growing LNG (liquid natural gas) industry." Since that deal was announced, Centurion has made several key moves regarding two exploration properties in Egypt's Nile Delta region. The company first acquired the final 25 per cent stake in the West El Manzala and West El Qantara concessions from CTIP Oil and Gas Ltd., a private United Arab Emirates company. Five days later, it signed an agreement with two divisions of Royal Dutch Shell PLC to farm out a 50 per cent interest of the same two properties in a deal with the global energy giant that could be worth up to $260 million US. Although the deal initially covers just the drilling of five exploration wells, it sets the stage for Shell and Centurion to co-operate in developing liquefied natural gas opportunities for export to other markets around the world if enough reserves are discovered. Last month, Centurion also unveiled annual profits that dropped more than 30 per cent in 2005 to $9 million as the international oilpatch junior reported a large writedown from the Tunisian properties it sold early last year. On the Toronto stock market Tuesday, Centurion shares fell 30 cents or more than two per cent to $13.50.