23rd May 2016 08:15
LONDON (Alliance News) - Petroceltic International PLC provided shareholders with some much-needed and long-awaited good news on Monday after successfully completing the second development well on its flagship Ain Tsila field in Algeria under-budget and on schedule.
Petroceltic said the AT-13 well is the second of a 24-well programme, noting it is still benefiting from a carry of its development costs from one of its partners, Sonatrach, after selling an interest to the company back in July 2014.
The well is in the north of the field and lies 1.8 kilometres from the AT-8 appraisal well and 1.8 kilometres away from AT-1, which was the original discovery well. The drilling programme is being carried out in order to maintain optimal production.
The field is covered by the Isarene production sharing contract and the partners are allowed to produce a total of up to 355.0 million standard cubic feet of wet gas per day from the field, with the current work programme expected to allow that level of production to be maintained.
The second well was drilled under budget and on schedule, but more importantly intersected 73.0 metres of gas and condensate bearing formation and the wireline logging results from the well have indicated there is "excellent reservoir quality" similar to what was found at the AT-8 well.
"Well test results will be confirmed later in 2016 when planned batch completion, stimulation and testing activities are undertaken," said Petroceltic.
The rig used to drill the well is now on the move and will drill the AT-11 development well in the north of the field which will target the same gas and condensate bearing formation as AT-13.
Petroceltic holds a 38.25% stake in the field whilst Sonatrach holds an 43.375% stake. Enel is the other partner with an 18.375% stake.
Petroceltic is currently in the process of being taken over by its largest shareholder, Worldview Capital Management, after the two battled with each other for years over the management of the company. Worldview was finally given the all clear to takeover the troubled company after a court-appointed examiner ruled Worldview was the best party to take control of the firm.
Petroceltic had turned down offers from Worldview but was forced to make a U-turn as its financial position dwindled and left it scrambling for funds and another buyer.
Debt-laden Petroceltic has not yet revealed what the specific terms of Worldview's takeover will be. Worldview's last offer, which was rejected, was at 3.0 pence per Petroceltic share, which was an 83% discount to the company's share price at the time.
Petroceltic shares are currently suspended.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.