29th Jan 2009 08:00
29th January, 2009
Petroceltic International plc
Rig Contract Signed for Algerian Drilling Programme
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 it has now signed a fully termed contract with KCA Deutag for their Nomad class drilling rig T-212. This contract is subsequent to the Letter of Intent announced in November 2008.
The T-212 rig is a new drilling unit which will be utilised for the Company's seven well drilling and testing programme on the Isarene permit in Algeria to which it is currently en route having been mobilised from Germany.
This seven well programme, currently expected to commence in April, will focus on appraising gas and oil discoveries already made on the Isarene permit by Petroceltic and previous operators. In total, the programme is expected to take approximately 9-10 months to complete and will be funded from the proceeds of the US$55 million investment in Petroceltic by Spanish energy company Iberdrola in June 2008.
Petroceltic has a 75 per cent interest in the Isarene permit in association with Sonatrach, the Algerian state Oil and Gas Company, which holds the remaining 25 per cent.
Update on Strategic Alliance with Iberdrola
The above announcement is further indication that, following the US$55m investment completed in August 2008, Petroceltic and Iberdrola continue to work together to add value to Petroceltic's portfolio of assets. In accordance with the terms of the financing option agreement, entered into by Petroceltic and Iberdrola at the time of the initial investment in June 2008, Petroceltic will shortly receive the US$7.33m advanced payment of the financing option. Petroceltic looks forward, subject to further regulatory approvals, to working closely with Iberdrola to further develop the Company's assets.
Brian O'Cathain, Executive Chairman of Petroceltic commented:
"With this rig contract in place and the forthcoming drilling programme scheduled to start in April, we now hope to take significant steps towards the commercialization of the gas already proven on the Isarene permit over the next twelve months. Recent supply chain events in the European Gas Market have highlighted the importance of Algerian gas to Europe and we look forwards to collaborating with Sonatrach to deliver the gas potential of the Isarene Permit".
-ENDS-
For further information:
Petroceltic
Brian O'Cathain Executive Chairman Tel: +353 (1) 421 8300
John Craven Chief Executive
Pelham PR
James Henderson Tel: +44 20 7743 6363 Philip Dennis
Murray Consultants
Joe Murray Tel: +353 (1) 4980300
John Craven, Chief Executive, Petroceltic International plc, is the qualified person who has reviewed and approved the technical information contained in this announcement. John holds a B.Sc. in Geology from The Queens University of Belfast, and an M.Sc in Petroleum Geology from Imperial College London, and has over 30 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 and a royalty interest in the Kinsale Head gas field in Ireland. 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.
This announcement has been issued through the Companies Announcement Service of
the Irish Stock Exchange.
Related Shares:
PCI.L