18th May 2009 07:00
Petroceltic International plc
Algerian operations update
Petroceltic International plc ("Petroceltic" or "the Company"), the upstream oil and gas exploration and production company focused on North Africa and the Mediterranean is pleased to announce that it has commenced drilling operations on the Isarene permit in Algeria. Drilling began in the INE-2 well at 23.00 hours on 16th May 2009.
The overall programme of wells planned for the Isarene permit by Petroceltic (Operator, 75% equity interest) and its co-venturer Sonatrach (25% equity interest) is for 5 to 7 wells. Allowing for rig moves and drilling times, the second well of the programme (AT-1) is expected to begin drilling operations in 4 to 5 weeks time.
The Company plans to test and where necessary fracture the objective reservoir sections of the wells drilled without using the drilling rig ("rigless testing"). The rigless testing approach has many operational benefits, and reduces cost and programme length overall. The first two wells in the programme will be drilled and suspended ready for testing before the test crew is mobilised to the block.
The optimised operations plan requires the wells to be tested once the rig has completed drilling and completion operations and has departed from each well site. The testing will then be carried out as a continuous batch process independent of rig operations.
The Company does not intend to announce the commencement of each well in the campaign. Subject to the Company's regulatory announcement obligations it is intended that well test results will be announced when individual well tests have been completed, and when the co-venturers have agreed the announcement in accordance with the public announcement provisions of the Isarene Production Sharing Contract. On current planning, the first testing results are expected to be announced in September 2009.
Brian O'Cathain, Chief Executive of Petroceltic commented:
"We are delighted to have started drilling again on Isarene. This is our first drilling operation on the licence since we acquired almost 1000 sq. km of wide azimuth 3D seismic on the Ain Tsila ridge. We hope to test and appraise the existing gas accumulations on Isarene with this drilling campaign."For further information:
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Petroceltic
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Tel: +353 (1) 421 8300
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Brian O’Cathain
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Chief Executive
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Alan McGettigan
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Finance Director
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Pelham PR
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Tel: +44 20 7743 6363
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James Henderson
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Philip Dennis
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Murray Consultants
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Tel: +353 (1) 4980300
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Joe Murray
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Davy
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Tel: +353 1 6796363
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Hugh McCutcheon
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John Frain
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Brian O'Cathain, Chief Executive, Petroceltic International plc, is the qualified person who has reviewed and approved the technical information contained in this announcement. Brian holds a B.Sc. in Geology from The University of Bristol, and has over 25 years experience in oil & gas exploration and production.
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 Sock Exchange's IEX Market. The Company has exploration assets in Algeria, Tunisia and Italy. Petroceltic is in a unique position in Algeria, operating a significant licence in partnership with Sonatrach the state oil company, one of only two AIM listed companies to enjoy this position.
The Company has already drilled two successful gas appraisal wells on the Isarene permit in 2006. One of these, HTT-2, tested at a cumulative rate of 15.3 mmscf/d of gas from a number of zones. A map depicting the location of the INE-2 well location within the Isarene permit in included within the presentation on the recent US $40 mm placing on the company's website, www.petroceltic.ie.
Related Shares:
PCI.L