PCI.L Regulatory News (PCI)

22 Sep 2009 07:00



Petroceltic International plc

New gas discovery in Algeria

Petroceltic International plc ("Petroceltic" or "the Company"), the upstream oil and gas exploration and production company focused on North Africa and the Mediterranean, is pleased to announce well AT-1, on the Isarene permit (Blocks 228 & 229a), Algeria, has been successfully tested at the Ordovician (Unit IV) zone at a depth of 1915m. 

The well flowed 11.4 mmscf/d of gas (13,451 cubic metres/hour) with a flowing wellhead pressure of 205 PSI on a 2" choke setting, and at a rate of 7.75 mmscf/d (9,144 cubic metres/hour) with a flowing well head pressure of 1458 PSI on a 32/64" choke setting. The associated condensate rates were 210 barrels of condensate/day on a 2" choke setting, and 233 barrels of condensate/day on a 32/64" choke setting. The well was tested under natural flow and was not fracture stimulated. Testing and sampling operations at the well have now been completed.

Wireline logging results at the well were better than pre-drilling estimates, due primarily to the confirmation of a deep gas water contact at 1948m, and better than expected reservoir porosity and permeability values in the objective horizon. The well has been completed for possible future use as a production well.

The AT-1 well is the second well in the current drilling programme on the Isarene permit in the Illizi basin, Algeria. The successful test demonstrates the high gas potential of the Ain Tsila ridge discovery at this location. The well was drilled by Petroceltic (75% interest, Operator) in association with the Algerian Oil & Gas Company Sonatrach (25% Interest).

The AT-2 well, the second on the Ain Tsila field, is currently coring in the objective Ordovician formation. The forward plan for AT-2 is to continue coring the objective reservoir section, then to log the objective zone. The INE-2 well is now scheduled for testing after the completion of the AT-2 well. 

This is the third gas discovery tested by Petroceltic on the Isarene permit. In 2006, the Company tested gas from the shallower Devonian and Carboniferous objectives in wells HTT-2 (15.4 mmscf/d from 3 zones) and ISAS-1 (1.2 mmscf/d from 2 zones).

Brian O'Cathain, Chief Executive of Petroceltic, commented: 

"We are delighted with the results of the AT-1 well test. This test exceeds our pre-drilling expectations, and is the most prolific single zone well test on the Isarene permit to date. The potential hydrocarbon resources associated with the Ordovician Ain Tsila ridge structure are an order of magnitude larger than our earlier discoveries on this permit. These well results confirm the significant commercial potential of the Isarene permit to Petroceltic and our partner Sonatrach. We look forward to reporting results from the AT-2 well in the near future". 

Ends

For further information, please contact:

Dermot Corcoran, Head of Exploration, Petroceltic International plc, is the qualified person who has reviewed and approved the technical information contained in this announcement. Mr. Corcoran holds a B.Sc. in Geology and an M.Sc in Applied Geophysics from the University of Galway, and a Ph.D from Trinity College Dublin, and has over 25 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 and appraisal assets in Algeria, Tunisia and Italy.