PCI.L Regulatory News (PCI)

28 Jul 2006 11:37

Petroceltic International PLC28 July 2006 Petroceltic International plc - AGM Statement Petroceltic's Algerian drilling set to commence Dublin; Friday, 28th July, 2006: At today's Annual General Meeting John Craven,CEO of Petroceltic, announced that drilling in its Algerian Isarene Permit isscheduled to begin on 30th July 2006. The first well will evaluate the "ISAS" prospect where there are three reservoirobjectives in Devonian and Ordovician sandstones. The nearest existing well toISAS, "INE 1", located 4 kms North East, tested gas at rates of up to 4 millioncubic feet per day. Other nearby wells "TMZ 1" and "INW 1" have tested gas atsimilar rates. After drilling the first well, the rig will move to the second location at HassiTab Tab West (HTTW). The HTTW well will target potential hydrocarbon reservoirsof Carboniferous, Devonian and Ordovician age. Petroceltic as operator has contracted Schlumberger "IPM" to project manage thedrilling operations for the two wells which are expected to last for the threemonths of August, September and October this year. The drilling of the ISAS and HTTW wells marks the beginning of a sustainedperiod of petroleum operations by Petroceltic over the large Isarene permit areain the coming three to four years involving new seismic acquisition and furtherdrilling. In addition to the wells in Algeria, Petroceltic expects that drilling willcommence on the "Inishbeg" prospect offshore Donegal in mid August. Petroceltichas a 16.25% interest in Irish frontier licence 1-05 which contains the Inishbegprospect. Ends Press queries to: John Craven Petroceltic International plc Tel: (01) 495 9285 Ronnie Simpson or Caroline Kohn Simpson FT PR Tel: (01) 260 5300 / 086 855 9410 Notes to the Editor Petroceltic's interests in Algeria Petroceltic's Isarene block is located in the prolific Illizi basin of centralAlgeria. This basin contains several giant oil and gas fields notably "TinFouyaye Tabenkort", "Alrar" and the "In Amenas" oil and gas complex. Hydrocarbon reservoir targets are Devonian "F2" and "F6" and Ordoviciansandstones. Flow rates from exploration wells in the Illizi Basin average approximately 2.6million cubic feet of gas per day and 900 barrels of oil per day. However, in recent years new techniques such as fracing and horizontal drillinghave improved flow rates considerably particularly for development wells. In the Illizi basin hydrocarbons are found in low relief but extensivestructural and stratigraphic traps. Further information on the Isarene permit • Area: 10,800 square kms (equivalent to 43 North Sea blocks) • Petroceltic interest: 75 % • Partner: Sonatrach 25% • Nearest existing oil infrastructure: Tiffernine 15kms • Nearest existing gas infrastructure: TFT 60 kms • Number of existing wells in the permit that have tested gas:10 • Number of existing wells in the permit that have tested oil: 2 Nearby oil and gas companies: BP, ROSNEFT, MEDEX, TOTAL, REPSOL, STATOIL. 28 July, 2006 This information is provided by RNS The company news service from the London Stock Exchange