PCI.L Regulatory News (PCI)

18 Dec 2006 07:02

Petroceltic International PLC18 December 2006 Petroceltic International plc, ("PC" & "Petroceltic") Isarene Production Sharing Contract ("PSC") (Petroceltic 75% Sonatrach 25%) Drilling Update Petroceltic International plc, the Irish based international oil and gasexploration and production company with a portfolio of assets in Algeria,Ireland, Italy and Tunisia is pleased to announce the following results of flowtesting from the recently completed Hassi Tab Tab 2 (HTT 2) well and the earlierISAS 1 well. Details of the test results are outlined below: ISAS 1 (First exploration well which satisfied the PSC obligation) A total of 1.210 million standard cubic feet per day (mmscf/d) of gas was testedfrom 2 geological horizons, the Devonian F2 and the Carboniferous Visean B. Bothhad sustained gas flows and stabilised well head pressures. However evaluationof the test data indicated formation damage at the Devonian F2 horizon, whichseverely reduced the flow rate during this test. In addition small amounts ofgas were produced from an open hole test in the Ordovician. Hassi Tab Tab 2 (Located 40 kms west of ISAS 1) A total of 15.44 mmscf/d of gas was tested from 3 geological horizons, theDevonian F2, the Carboniferous Tournaisian and the Carboniferous Visean B. Allhad substantial flows and stabilised well head pressures. In accordance with the provisions of the PSC, a Declaration of Discovery forboth wells has been submitted to Sonatrach. Petroceltic will provide updatesregarding progress on this issue in due course. John Craven, CEO of Petroceltic, commented: "This is very significant news for Petroceltic and I am extremely pleased withthe well test results. In particular the gas flow rate from the Devonian F2 inHTT 2 is one of the highest for this horizon in the Illizi Basin." "Furthermore, the well results have confirmed the potential for commercialexploitation of these shallow, laterally extensive, hydrocarbon reservoirs inthis part of the Isarene Permit and we are currently reviewing all options withrespect to the appraisal and development of the ISAS/Hassi Tab Tab area." For further information: John CravenPetroceltic International plcTel: +353 (01) 495 9285 Billy CleggFinancial DynamicsTel: +44 (0)207 2697157 Ronnie SimpsonSimpson FT PRTel: +353 (01) 260 5300 Detailed information on the flow test results: ISAS 1, a total of 1.210 mmsfc/d of gas was tested from 2 geological horizons: 1. Devonian F2 Tested interval: 851 - 856 & 861 - 865 m (9 m)Flow rate: 0.360 mmscf/d wet gas *Choke size: 40/64 inchStabilised WHP 41 psiGas SG: 0.69 * Evaluation of the test data shows significant formation damage which severelyreduced the flow rate during this test. 2. Carboniferous Visean B Tested interval: 558 - 564 m (6 m)Flow rate: 0.850 mmscf/d wet gasChoke Size: 56/64 inchStabilised WHP: 36 psiGas SG: 0.616 psi In addition small amounts of gas were produced from an open hole test in theOrdovician in ISAS 1. Hassi Tab Tab 2, a total of 15.44 mmscf/d of gas was tested from 3 geologicalhorizons: 1. Devonian F2 Tested interval: 907- 921 & 939.5 - 943 m. (17.5 m)Flow rate: 12.56 mmscf/d wet gasChoke size: 56/64 inchStabilised WHP: 590 psiGas SG: 0.642 2. Carboniferous Tournaisian Tested interval: 677 - 681 m (4 m)Flow rate: 2.44 mmscf/d wet gasChoke size: 44/64 inchStabilised WHP: 231 psiGas SG: 0.619 3. Carboniferous Visean B Tested interval: 436.5 - 441.5m (5m)Flow rate: 0.44 mmscf/d wet gasChoke size: 32/64 inchStabilised WHP: 84 psiGas SG: 0.669 Partners in the Isarene PSC are Petroceltic (75%) and Sonatrach, the AlgerianState Oil Company (25%). Glossary of Terms m metersmmscf/d million standard cubic feet of gas per daypsi pounds per square inchSG Specific GravityWet Gas Natural Gas containing CondensateWHP Well Head Pressure For more information and photos of drilling and testing operations on ISAS andHTT2 visit www.petroceltic.com 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. This information is provided by RNS The company news service from the London Stock Exchange