PCI.L Regulatory News (PCI)

22 Sep 2006 12:21

Petroceltic International PLC22 September 2006 Petroceltic International Plc Algeria Drilling / Testing Update Petroceltic International plc provides an update on its testing operations atthe ISAS-1 exploration well in the Isarene Permit, Illizi Basin, Algeria, whichwere completed last night (21 September 2006). Log analysis indicated the presence of gas saturated sandstone at three separatelevels in the well (Ordovician, Devonian and Carboniferous) including apotential gross gas column in excess of 230m in Ordovician Unit IV and Unit IIItight sandstones. Initial, unstimulated, well testing of the three intervals is now complete withgas flowing on test on each of these three intervals. However, details of thetest results and possible associated reserves await the approval of the Algerianauthorities before they can be published. The ISAS-1 well will now be suspended in order to facilitate further evaluationwhich may include well stimulation via hydraulic fracturing. In accordance withthe Production Sharing Contract for Isarene, Petroceltic intends to immediatelysubmit a discovery declaration for the Carboniferous interval to Sonatrach andthe Algerian Ministry of Energy. On completion of the ISAS-1 well suspension the rig will move to the HTTW-1location where drilling is expected to commence in approximately three weeks. Commenting on the well results John Craven CEO of Petroceltic said "I amencouraged by the results of ISAS-1, our first exploration well in Algeria. Thepresence of gas at three separate stratigraphic levels confirms our view of themulti zone prospectivity of the Isarene permit and the exploration potential ofthis area of the Illizi Basin." The above information has been reviewed and verified by Mr. John Craven,Director and Chief Executive Officer of Petroceltic, for the purposes of theGuidance Note for Mining, Oil and Gas Companies issued by the London StockExchange in March 2006. Pictures of Petroceltic's gas testing are available on the Company's web site,http://www.petroceltic.ie/ Press queries to: John CravenPetroceltic International plcTel: (01) 495 9285 Ronnie SimpsonSimpson FT PRTel: +3531 260 5300 Billy CleggFinancial DynamicsTel: +442072697157 This information is provided by RNS The company news service from the London Stock Exchange