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17 Nov 2009 07:00
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Dublin
17thΒ NovemberΒ 2009
Petroceltic International plc
Successful well test at well INE-2Β on the ISAS structure,Β Isarene Block, Algeria
Petroceltic International plc ("Petroceltic" or "the Company"), the upstream oil and gas exploration and production company focused on North Africa and the Mediterranean, in association with its partner Sonatrach, the Algerian National Oil & Gas Company is pleased to announceΒ that well testing of the Objective Devonian F2 formation atΒ well INE-2 has been successful, with a gas well test rate of 4 million standard cubic feet per dayΒ ("MMscf/d")Β (4,720Β cubic metres/hour) with a flowing wellhead pressure ofΒ 180Β PSI on aΒ 1'Β choke setting.Β This flow rate was achieved without the benefit of fracture stimulation whichΒ proved successfulΒ inΒ testingΒ on the AT-1 well.
The ISAS is a separate structure in the same areaΒ of the Ilizi basinΒ as the Ain Tsila ridge discoveryΒ announced recently. ISASΒ has beenΒ identifiedΒ as a significant gas bearing structureΒ in its own rightΒ for some time. INE-2 is the third well on the ISAS structure to flow gas at 4mmscfd or more. Well INE-1 flowed at 4.4mmscfd while another earlier well, TMZ-1 tested at 4.1mmscfd. A further well on the structure, GTT-1, tested oil at rates of 490Β barrels per day.Β Β A joint technical study undertaken withΒ theΒ operator of the adjacent block 226 in 2007 concluded that at the F2 level the structure extendedΒ intoΒ both blocks, across a distance of 20km north to south.Β
Well INE-2 was theΒ commencementΒ wellΒ ofΒ the current drilling campaign onΒ the Isarene permit (Blocks 228 & 229a),Β in the Illizi basin.Β The well was drilled toΒ a total depth of 1020m in June 2009,Β targeting the Devonian F2 sands in the ISAS structure.Β Testing of this well has now been completed. Following perforation of a 5 metre intervalΒ in the objective Devonian formation, the following flow rates and Flowing Well Head Pressures ("FWHP") were recorded.
Choke
setting Gas rate FWHP
64ths" MMscf/d PSIG*
64 Β 4.0 180
32 3.2 561
Β
*PSIG: Pounds per Square Inch Gauge
Testing and sampling operations at theΒ INE-2Β well haveΒ now concludedΒ and the well testing crew is moving to flow test wellΒ AT-2. WellΒ INE-2Β has been completed for possible future use as a productionΒ well.
The INE-2 well is the second successful well in the current drilling programme, and it demonstrates the potential of the shallow, Devonian objective in this part of the Isarene block. The well was drilled by Petroceltic (75% interest, Operator) in association with the Algerian oil & gas company Sonatrach (25% Interest). In accordance with the provisions of the Isarene Production Sharing Contract, a declaration of discovery for this accumulation has been submitted to Sonatrach.
Independent of the well testing programme, theΒ drilling rigΒ is drillingΒ aheadΒ atΒ theΒ AT-3 location, which is approximately 9 km south of the AT-2 location, to continue theΒ appraisalΒ of the Ain Tsila Ridge structure.Β The testing of well AT-2 is about to commence in parallel with the drilling of AT-3.
Brian O'Cathain, Chief Executive of Petroceltic, commented:Β
"This is the first well test which we have had on the secondary Devonian Objective on the Isarene block since our successful two well drilling campaign in 2006. We are pleased that this well has demonstrated a commercial flow rate at this location. This additional discovery on the block is helpful in adding to the hydrocarbon inventory proved as potentially commercialΒ on the licence. It forms a separate shallower accumulation to the previously announced AT-1 Ordovician discovery. We expect to delineate both Devonian discoveries (INE-2 and HTT-2) and the deeper Ordovician discovery at AT-1 in the next phase of the Production Sharing Contract".
Ends
For further information, please contact:
Petroceltic
Brian O'Cathain Chief Executive Tel: +353 (1) 421 8300
Alan McGettigan Finance Director
Pelham PR
Philip Dennis Tel: +44 20 7337 1516Β
Klara Kaczmarek Tel: +44 20 7337 1524
MurrayΒ Consultants
Joe Murray Tel: +353 (1) 4980300
Davy
Hugh McCutcheon Tel: +353 1 6796363
John Frain
Fabrice Toussaint, Head of Petroleum Engineering, Petroceltic International plc, is the qualified person who has reviewed and approved the technical information contained in this announcement. Mr. Toussaint holds a Diploma in Engineering from the Ecole Nationale SupΓ©rieure de l'AΓ©ronautique et de l'Espace, Toulouse, and has over 17 years experience in oil & gas exploration and production. He is a member of the Society of Petroleum Engineers.
Notes to Editors:
Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on theΒ MediterraneanΒ 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 and appraisal assets inΒ Algeria,Β TunisiaΒ andΒ Italy.
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