RNS Number:2678L
Petroceltic International PLC
08 January 2008
PETROCELTIC OPERATIONAL UPDATE - PLANS FOR 2008
The board of Petroceltic International plc ("Petroceltic" or "the Company") (AIM
& IEX: PCI) are pleased to announce an update on the Company's current
operations and the outlook on plans for 2008.
Highlights:
Algeria - Isarene Production Sharing Contract (75% interest / Operator)
* 3D seismic acquisition commences over largest prospect on the block.
* Seismic also planned to cover the Isas and Hassi Tab Tab 2 gas discoveries
as part of the reserve delineation process.
* Seismic to be followed by extensive drilling programme commencing in the
second half of 2008.
Italy (7 permits / 11 applications)
* Acquisition of British Gas' (BG) Italian assets completed.
* Acquisition includes four operated permits and one non-operated permit in
the gas prolific Po Valley adjacent to producing fields.
* Up to three wells planned for late 2008 and early 2009, two in the Po Valley
and one in the Adriatic.
Tunisia (57% interest / Operator)
* Recent seismic mapping confirms three new prospects.
* Drilling planned for Q2/Q3 2008.
Algeria:
In the Isarene permit (Petroceltic Operator, 75% interest) Petroceltic is
pleased to announce the commencement of geophysical operations for the
acquisition of a major 3D Wide Azimuth (WAZ) seismic survey. The survey,
covering a total area of approximately 850 km2, is focussed on the highly
prospective North Ain Tsila Ridge, in an area where log and test data from prior
wells indicate the presence of hydrocarbons in both the Ordovician and Devonian
reservoirs. Petroceltic and its partner Sonatrach have awarded the contract for
this survey to Global Geophysical, a company experienced in 3D WAZ seismic
survey acquisition elsewhere in Algeria.
Petroceltic's strategy going forward is to employ the latest seismic
technologies and a key objective of the 3D WAZ seismic survey is to identify
high permeability sweet spots in the target Ordovician reservoirs in order to
optimize drilling and well testing procedures. This technique has been
successfully deployed by BP in the appraisal and development of the adjacent
Tiguentourine Field in the Illizi Basin (to the east of the Isarene Permit) -
where average development well flow rates of 80 mmscf/d from the Ordovician
reservoir, have been reported*.
The survey is scheduled to take six months to acquire, and the data will be
utilised as acquired to plan up to 5 wells in this area commencing in Q4 2008,
and continuing into 2009.
After completion of the survey on the ridge, 3D seismic will be acquired over
the Isas and Hassi Tab Tab discovery areas as a prelude to delineation drilling
planned for 2009.
Italy
The acquisition of the BG Group Italia Po Valley upstream interests, announced
on 15th October 2007, was completed on 28th December 2007, following partner
approval and final consent from the Italian authorities. This deal gives
Petroceltic an inventory of operated and non-operated ready-to-drill prospects
defined by existing 3D seismic data near to producing gas fields in the Po
Valley and compliments Petroceltic's existing oil dominated acreage in the
Central Adriatic region.
Activity in the Po Valley in 2008 will focus on the Carissio and Torrente Nure
Licences. In Carissio (Petroceltic Operated, 95% interest) there are two gas
prospects well-defined by 3D seismic, Rosso and Arborio. These low-risk
prospects are adjacent to existing gas infrastructure. The Company intends to
mature these to fully-permitted, ready-to-drill prospects during the year, with
drilling planned for Q4 2008/Q1 2009, subject to rig availability. In Torrente
Nure (ENI operated, Petroceltic 55% interest) the operator intends to shoot
additional 2D seismic, with a view to drilling an exploration well in 2009.
Central Appenines: On the BR268 RG licence (Viga Oil S.P.A. Operated,
Petroceltic 40% interest), the Company intends to acquire additional seismic on
the Elsa-1 discovery, prior to offshore appraisal drilling in Q4 2008/Q1 2009,
subject to rig availability. On Civitiquana (Vega Oil S.P.A. Operated,
Petroceltic 40% interest), data collation and study is underway, with a view to
drilling in the first half of 2009.
The Company may seek to share risk in some of these prospects through a partial
farm-out to industry partners or a strategic investor.
Tunisia:
Petroceltic is pleased to announce that it has notified ETAP, the Tunisian State
Oil Company, of its intention to enter the second phase of the Ksar Hadada
Production Sharing Contract (Petroceltic 57%, Operator), which will extend this
licence until April 2011. The Company has remapped the reprocessed seismic data
on the licence, and is now planning up to three wells (subject to rig
availability) in Q2/Q3 2008. Discussions on rig contracting are currently
underway. It is likely that the Company will seek to share the risk of drilling
the prospects identified through a partial farm-out of its interest in the
licence.
Petroceltic's CEO, Mr John Craven, commented:
"We are very excited about the prospects for the Company in 2008/09. Work has
now commenced on the 3D WAZ seismic survey across our main prospect and
discovery areas on the Isarene permit in Algeria. This, together with the
exploration drilling planned for later in 2008, should help to firm up the
resource potential of this very prospective area. The new seismic has the
additional benefit of fulfilling our outstanding work programme commitment for
the first exploration phase of this Production Sharing Contract.
In Italy, we have developed our portfolio dramatically through the BG Italia Po
Valley acquisition, and look forward to a year of adding significant value for
shareholders and in Tunisia, our re-mapping of the area has identified
additional prospectivity.
We are confident that our programme can be achieved within the current funding
and strategic options open to the Company, and we look forward to an active
period focused on unlocking the significant value within our portfolio".
Press Enquiries to:
John Craven /Brian O'Cathain, Petroceltic Tel: +353 (1) 495 9285
James Henderson / Alisdair Haythornthwaite, Pelham PR Tel: +44 20 7743 6676
Joe Murray, Murray Consultants 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 20 years experience in oil & gas exploration and production. Definitions in
this press release are consistent with Society of Petroleum Engineers
guidelines, which can be inspected at http://www.spe.org/spe-app/spe/industry/
reserves/prms.htm
* Source: Wood Mackenzie Energy Service 2007
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 three AIM listed companies to
enjoy this position.
This information is provided by RNS
The company news service from the London Stock Exchange
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