RNS Number : 3744U
Petroceltic International PLC
14 May 2008
Petroceltic International plc
Operational Update, North Africa
Highlights
Algeria
* Isarene Permit successfully enters the second exploration phase for a two year
period
* State of the art 3D seismic survey designed to locate areas of optimum reservoir
quality
* To date 510 sq km of 3D acquired over large gas/condensate prospect
* Initial results encouraging
* Drilling tenders issued with drilling due to commence Q1 2009
Tunisia
* Ksar Hadada permit renewed for 3 year period
* New seismic evaluation indicates a number of exploration prospects on the licence.
Algeria - Isarene Production Sharing Contract (75 per cent interest / Operator)
Petroceltic International plc ("Petroceltic") is pleased to announce that approval has
been granted for the Isarene permit in Algeria to
enter the second exploration period. The second period officially commenced on April 26th 2008
and is in force for two years until April
25th 2010.
Petroceltic has retained 70 per cent of the original Isarene Permit area (7,520 sq. km)
into the second exploration period, in line with
the provisions of the Production Sharing Contract. The retained area contains all of the
prospects previously identified by Petroceltic on
the licence.
Currently Petroceltic is acquiring a state of the art 3D seismic programme over a large
gas/condensate prospect "the Ain Tsilla Ridge"
in the north eastern part of the permit, which according to Petroceltic's estimates could
contain gas resources of greater than two trillion
cubic feet. Two wells have already been drilled on this prospect by previous operators, both
of which tested gas and some condensate.Petroceltic's new seismic is a "Wide Azimuth 3D" and has been designed to locate areas of
optimum reservoir quality in the target Ordovician
sandstones. To date approximately 510 of a planned 890 square kilometre programme have been
acquired. Initial results from the new seismic
are encouraging.
Petroceltic is also reprocessing existing data throughout the block and this together with
the new 3D seismic will provide the platform
for a planned extensive drilling campaign during the second exploration period. Tender
documents have now been issued to drilling
contractors. Petroceltic intends to commence drilling on this licence in Q1 2009, subject to
rig availability.
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.
Tunisia (57 per cent interest / Operator)
Petroceltic as operator of the Ksar Hadada permit has been informed by the Tunisian
government that the application to enter the first
renewal period has been approved. The first renewal period of the permit begins on 20th April
2008 and lasts for three years. In line with
the Production Sharing Contract, Petroceltic and its' co-venturer Independent Resources have
retained 80% of the original Ksar Hadada permit
(5,600 sq. km) into the first renewal period.
New interpretation of seismic and well data on the permit has yielded positive results
with the validation of a number of Ordovician
and Silurian prospects in the southern part of the block. Drilling on this licence has been
deferred until first half 2009, due to rig
availability issues, and to incorporate exploration drilling results on adjacent permits.
Petroceltic has a 57 per cent interest in and is operator of the Ksar Hadada permit. Other
partners are Independent Resources (Ksar
Hadada) Ltd, (40 per cent) GA.I.A. srl 1.5 per cent, Derwent Resources (Ksar Hadada) Ltd 1.5
per cent.
Commenting on the above John Craven CEO of Petroceltic said:
"These agreements secure these permits for Petroceltic and its partners in both Algeria
and Tunisia for the coming years. We are now
moving to deliver the underlying value from the high potential prospects on the permits during
this period. The new 3D in Algeria looks very
promising, and we are focusing on locating areas of optimum reservoir quality for drilling.Based on this, we look forward to an exciting
programme of drilling over the next twelve months."
Press Enquiries to:
John Craven /Brian O'Cathain, Petroceltic Tel: +353 (1) 421 8300
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.
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.
Maps of the revised areas of these two licences are available on Petroceltic's web site.
This information is provided by RNS
The company news service from the London Stock Exchange
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