8th Nov 2005 07:00
Petroceltic International PLC08 November 2005 8 November 2005 Petroceltic International Plc Increase in Interest in Italian ELSA 1 Discovery License Highlights • Increased interest in its B.R268.RG License in Italy from 15% to 40% • License contains ELSA 1 discovery, drilled in 1992 • Estimated proved and probable reserves range from 108 to 182 million barrels • Drilling planned for 2006 Petroceltic International plc ("Petroceltic" or "the Company"), the AIM listedoil and gas exploration and production company is pleased to announce that ithas exercised its option and increased its interest from 15% to 40% in theshallow water Italian licence B.R268.RG. The licence contains the 1992discovery well ELSA 1 which was drilled by a consortium of oil companiesoperated by AGIP. Following this discovery, AGIP drilled the nearby successfulonshore Miglianico 1 and 2 wells which are now producing oil from the same oilreservoir as that encountered in ELSA 1. After ELSA 1 was drilled Enterprise Oil plc, one of the partners in theconsortium, estimated proven and probable reserves ("P2") in the ELSA 1structure to be 108 million barrels. In addition, a recent published independentexpert's report from Petrel Robertson commissioned by Vega Oil S.r.l. (ourpartners in the block) concluded that the P2 reserves are 182 million barrels. Given: a) the location of the prospect in an established EU oil producing country; b) the excellent regulatory and fiscal regime in Italy; and c) the fact that there is significant facility and refinery infrastructure in very close proximity the Company believes the value of proven and probable oil reserves in thelicence area to be commercially attractive. The Company has certain pre-emption rights over any sale of its Italian'spartner's 60% interest in the Licence. The Company has been informed that there will be drilling in 2006 on an adjacentblock to the east on a prospect similar to ELSA. There are also a number ofsuitable rigs currently operating in this region of the Mediterranean andPetroceltic with its partner is planning to drill an appraisal well to the ELSA1 discovery in 2006. Under the terms of the option, Petroceltic will pay 60% ofthe cost of this first well and thereafter its 40% share. John Craven, CEO of Petroceltic said: "I am delighted to have increased our stake in this exciting discovery area withindependently assessed P2 reserves in excess of 100 million barrels of oil. Itis immediately adjacent to two recent discoveries which are now on-stream andproducing from the same oil reservoir. "This Licence is now becoming a very substantial asset of the Company and thereis, I believe very significant value in the ELSA 1 discovery." - Ends - For further Information, call: John Craven, Petroceltic International Plc 00353 1 495 9285Billy Clegg/Jonathan Brill, Financial Dynamics 020 7831 3113Ronnie Simpson, Simpson FTPR 00353 1 260 5300 Notes to editors: Petroceltic International plc ("Petroceltic" or "the Company") is a leading oiland gas exploration and production company owning a portfolio of significantassets in Algeria, Tunisia, Italy and Ireland. Petroceltic is headquartered inDublin and is listed on the Alternative Investment Market. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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