7th Dec 2009 07:00
Petroceltic International plc
Well AT-2 successfully flows 4.9 mmscf/d gas from Ordovician
AT-2 also finds gas in Devonian
Gas column in excess of 80 metres encountered in Well AT-3
Petroceltic International plc ("Petroceltic" or "the Company"), the upstream oil and gas exploration and production company focused on North Africa and the Mediterranean, in association with its partner Sonatrach, the Algerian National Oil & Gas Company is pleased to announce that:
The well test on well AT-2, on the Ain Tsila Field, Isarene permit (Blocks 228 & 229a), Algeria, following fracture stimulation ("fracturing") has resulted in gas flow rates in line with expectations, of 4.9 mmscf/d*. A discovery declaration has been filed with Sonatrach for this well.
Well AT-2 gas pressures indicate that this well is in the same pressure regime as the gas in AT-1 and that AT-2 therefore represents a successful delineation well to the AT-1 gas condensate discovery. It is probable that the Ain Tsila gas condensate discovery therefore extends at least 12km south from AT-1 to the AT-2 location.
AT-2 also logged 4m of gas bearing sandstone in the Devonian F2 horizon. The Company plans to test this shallower gas-bearing interval, using a workover rig, at a later date.
Drilling on the AT-3 well, 9km to the south of AT-2 has now been completed. The well logged a gas column in the Ordovician reservoir in excess of 80 metres. With testing of the AT-2 well completed, the Company plans to test the AT-3 well.
The rig will now move to drill the INW-2 well in the north west of the block, on the Issaouane NW prospect. This well will target both Devonian and Ordovician reservoir objectives.
The post fracture gas flow rates from the AT-2 well are summarised below at the following Flowing Well Head Pressures ("FWHP").
Choke Post Fracture Stimulation
setting Gas rate FWHP
64ths" MMscf/d* PSIG**
64 4.9 332
32 4.8 885
*MMscf/d: Million Standard Cubic Feet per Day of gas
**PSIG: Pounds per Square Inch Gauge
Testing and sampling operations at the AT-2 well have now been completed and the well testing crew is now moving to flow test well AT-3. Well AT-2 has been completed for possible future use as a production well.
The AT-2 well is the third well in the current drilling programme on the Isarene permit in the Illizi basin, Algeria, and the fourth well to successfully test gas at potentially commercial rates drilled by Petroceltic since the block was awarded. This successful well test demonstrates the existence of Ordovician gas reservoirs over 12 km from the AT-1 location to the AT-2 location.
Gas flow rates at AT-2 are predominantly from the relatively low porosity and permeability matrix sandstone at this location. The fracture stimulation at AT-2 does not appear to have communicated with any natural open fractures at this location. The large volume of information gathered from the well evaluation programme and the subsequent fracture stimulation will be important in optimising any future development of the Ain Tsila discovery. The AT-2 well was drilled by Petroceltic (75% interest, Operator) in association with the Algerian Oil & Gas Company Sonatrach (25% Interest).
Brian O'Cathain, Chief Executive of Petroceltic, commented:
"Well AT-2 has successfully demonstrated that the Ain Tsila structure contains a large volume of gas in place, with pressure continuity demonstrated from AT-1 to AT-2. It also demonstrated that the lower quality Ordovician sandstone encountered at AT-2, with porosities in the range of 5-10% are capable of flowing gas at commercial rates, even in vertical wells. We are now working to integrate well and seismic data, with a view to optimising future development locations on areas of open fractures and / or higher permeability rock. We are pleased to have successfully logged over 80m of Ordovician gas reservoir at AT-3, and look forward to testing that well in the near future. The drilling rig is now moving to drill the Issaouane NW prospect, in the North West part of this prolific block."
Ends
For further information, please contact:
Petroceltic
Brian O'Cathain Chief Executive Tel: + 353 86 820 7250
Alan McGettigan Finance Director Tel: +353 (1) 421 8300
Pelham PR
Philip Dennis Tel: +44 20 7337 1516
Klara Kaczmarek Tel: +44 20 7337 1524
Murray Consultants
Joe Murray Tel: +353 (1) 4980300
Davy
Hugh McCutcheon Tel: +353 1 6796363
John Frain
Fabrice Toussaint, Head of Petroleum Engineering, Petroceltic International plc, is the qualified person who has reviewed and approved the technical information contained in this announcement. Mr. Toussaint holds a Diploma in Engineering from the Ecole Nationale Supérieure de l'Aéronautique et de l'Espace, Toulouse, and has over 17 years experience in oil & gas exploration and production. He is a member of the Society of Petroleum Engineers.
Notes to Editors:
Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on the Mediterranean and North African area, and listed on the London Stock Exchange's AIM Market and the Irish Stock Exchange's IEX Market. The Company has exploration and appraisal assets in Algeria, Tunisia and Italy.
Related Shares:
PCI.L