26th Jan 2006 07:00
Petroceltic International PLC26 January 2006 26th January 2006 Petroceltic International plc ("Petroceltic" or "the Company") Ireland Drilling and Kinsale Gas Royalty Update Petroceltic, the Irish based international oil and gas exploration andproduction company with a portfolio of assets in Algeria, Ireland, Italy andTunisia is please to update shareholders on its progress in Ireland. Highlights • Agreement to use Petrolia Rig to drill on Donegal Licence in Summer 2006 • Petroceltic has a 16.25% interest in the Licence • Donegal well financial budgets and design agreed • 2005 Kinsale Gas Royalty increases to over $900,000 (2004: $430,000) Petroceltic, is pleased to announce that all the Partners* on the DonegalLicense, offshore Ireland have agreed to use the Petrolia Rig to drill theInishbeg Prospect on the Donegal License in the summer of 2006. The wellbudgets and the well design have been agreed. In addition, Petroceltic is pleased to announce that its revenue from theKinsale Gas Royalty increased from $430,000 in 2004 to over $900,000 in 2005.This increase is largely a result of the higher gas prices being achieved,resulting in overall higher profitability of the operator and a higherpercentage royalty being paid to Petroceltic. John Craven CEO of Petroceltic commented: "We are delighted that we are going to drill offshore Donegal this year. TheCompany believes that the Inishbeg prospect is geologically analogous to theCorrib gas field. The significant increase in our royalty revenue highlights thecommercial attractiveness of producing gas offshore Ireland. "With this first drilling contract now in place and the tendering process forthe Algerian drilling programme well advanced, 2006 is looking to be a veryexciting year of drilling activity for Petroceltic." Ends For further information, call: John Craven, Petroceltic International plc +353 1 495 9285 Billy Clegg/Edward Westropp, Financial Dynamics +44 207 831 3113 *Partners on the Donegal Licence are:Lundin Petroleum, Operator (30%)Island Oil and Gas (31%)Ramco (19.25%)Petroceltic (16.25%)Sunningdale (3.5%) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PCI.L