PCI.L Regulatory News (PCI)

27 Nov 2008 07:00

Petroceltic signs Letter of Intent securing Drilling Rig for Seven Well Programme in Algeria. 

Petroceltic International plc ("Petroceltic") is pleased to announce that a Letter of Intent (LOI) has been signed with German drilling contractor KCA Deutag ("KCA") for their Nomad class drilling rig "T-212". The LOI authorises KCA to immediately mobilize the rig from Germany to the Isarene permit (Petroceltic 75% interest & Operator) in Algeria, for a seven well drilling and testing programme. 

The T-212 rig is a new drilling unit, and is scheduled to be on location ready to commence drilling in March 2009. This will be KCA' s second drilling rig in Algeria, the first, T-211, was until recently working for BP in the Illizi basin, on a block adjacent to the Isarene permit. 

Petroceltic's seven well drilling programme is expected to take approximately 9-10 months and will focus on appraising gas and oil discoveries already made on the Isarene permit by Petroceltic and previous operators and will be funded from the proceeds of the share subscription announced in June this year.

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.

John Craven CEO of Petroceltic commented:

"Securing this modern rig with KCA Deutag represents an important step in the execution of our strategy to maximise and commercialize potential resources on this permit. We are integrating results from the new 3D seismic to delineate areas of optimum reservoir quality for drilling. With the beginning of the drilling and testing operations, we look forward to an exciting period of operational results over the next twelve months."

Press Enquiries to:

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 30 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 two AIM listed companies to enjoy this position.