PCI.L Regulatory News (PCI)

8 Jan 2008 07:00

Petroceltic International PLC08 January 2008 PETROCELTIC OPERATIONAL UPDATE - PLANS FOR 2008 The board of Petroceltic International plc ("Petroceltic" or "the Company") (AIM& IEX: PCI) are pleased to announce an update on the Company's currentoperations and the outlook on plans for 2008. Highlights: Algeria - Isarene Production Sharing Contract (75% interest / Operator) • 3D seismic acquisition commences over largest prospect on the block.• Seismic also planned to cover the Isas and Hassi Tab Tab 2 gas discoveries as part of the reserve delineation process. • Seismic to be followed by extensive drilling programme commencing in the second half of 2008. Italy (7 permits / 11 applications) • Acquisition of British Gas' (BG) Italian assets completed. • Acquisition includes four operated permits and one non-operated permit in the gas prolific Po Valley adjacent to producing fields. • Up to three wells planned for late 2008 and early 2009, two in the Po Valley and one in the Adriatic. Tunisia (57% interest / Operator) • Recent seismic mapping confirms three new prospects. • Drilling planned for Q2/Q3 2008. Algeria: In the Isarene permit (Petroceltic Operator, 75% interest) Petroceltic ispleased to announce the commencement of geophysical operations for theacquisition of a major 3D Wide Azimuth (WAZ) seismic survey. The survey,covering a total area of approximately 850 km2, is focussed on the highlyprospective North Ain Tsila Ridge, in an area where log and test data from priorwells indicate the presence of hydrocarbons in both the Ordovician and Devonianreservoirs. Petroceltic and its partner Sonatrach have awarded the contract forthis survey to Global Geophysical, a company experienced in 3D WAZ seismicsurvey acquisition elsewhere in Algeria. Petroceltic's strategy going forward is to employ the latest seismictechnologies and a key objective of the 3D WAZ seismic survey is to identifyhigh permeability sweet spots in the target Ordovician reservoirs in order tooptimize drilling and well testing procedures. This technique has beensuccessfully deployed by BP in the appraisal and development of the adjacentTiguentourine Field in the Illizi Basin (to the east of the Isarene Permit) -where average development well flow rates of 80 mmscf/d from the Ordovicianreservoir, have been reported*. The survey is scheduled to take six months to acquire, and the data will beutilised as acquired to plan up to 5 wells in this area commencing in Q4 2008,and continuing into 2009. After completion of the survey on the ridge, 3D seismic will be acquired overthe Isas and Hassi Tab Tab discovery areas as a prelude to delineation drillingplanned for 2009. Italy The acquisition of the BG Group Italia Po Valley upstream interests, announcedon 15th October 2007, was completed on 28th December 2007, following partnerapproval and final consent from the Italian authorities. This deal givesPetroceltic an inventory of operated and non-operated ready-to-drill prospectsdefined by existing 3D seismic data near to producing gas fields in the PoValley and compliments Petroceltic's existing oil dominated acreage in theCentral Adriatic region. Activity in the Po Valley in 2008 will focus on the Carissio and Torrente NureLicences. In Carissio (Petroceltic Operated, 95% interest) there are two gasprospects well-defined by 3D seismic, Rosso and Arborio. These low-riskprospects are adjacent to existing gas infrastructure. The Company intends tomature these to fully-permitted, ready-to-drill prospects during the year, withdrilling planned for Q4 2008/Q1 2009, subject to rig availability. In TorrenteNure (ENI operated, Petroceltic 55% interest) the operator intends to shootadditional 2D seismic, with a view to drilling an exploration well in 2009. Central Appenines: On the BR268 RG licence (Viga Oil S.P.A. Operated,Petroceltic 40% interest), the Company intends to acquire additional seismic onthe Elsa-1 discovery, prior to offshore appraisal drilling in Q4 2008/Q1 2009,subject to rig availability. On Civitiquana (Vega Oil S.P.A. Operated,Petroceltic 40% interest), data collation and study is underway, with a view todrilling in the first half of 2009. The Company may seek to share risk in some of these prospects through a partialfarm-out to industry partners or a strategic investor. Tunisia: Petroceltic is pleased to announce that it has notified ETAP, the Tunisian StateOil Company, of its intention to enter the second phase of the Ksar HadadaProduction Sharing Contract (Petroceltic 57%, Operator), which will extend thislicence until April 2011. The Company has remapped the reprocessed seismic dataon the licence, and is now planning up to three wells (subject to rigavailability) in Q2/Q3 2008. Discussions on rig contracting are currentlyunderway. It is likely that the Company will seek to share the risk of drillingthe prospects identified through a partial farm-out of its interest in thelicence. Petroceltic's CEO, Mr John Craven, commented: "We are very excited about the prospects for the Company in 2008/09. Work hasnow commenced on the 3D WAZ seismic survey across our main prospect anddiscovery areas on the Isarene permit in Algeria. This, together with theexploration drilling planned for later in 2008, should help to firm up theresource potential of this very prospective area. The new seismic has theadditional benefit of fulfilling our outstanding work programme commitment forthe first exploration phase of this Production Sharing Contract. In Italy, we have developed our portfolio dramatically through the BG Italia PoValley acquisition, and look forward to a year of adding significant value forshareholders and in Tunisia, our re-mapping of the area has identifiedadditional prospectivity. We are confident that our programme can be achieved within the current fundingand strategic options open to the Company, and we look forward to an activeperiod focused on unlocking the significant value within our portfolio". Press Enquiries to:John Craven /Brian O'Cathain, Petroceltic Tel: +353 (1) 495 9285James Henderson / Alisdair Haythornthwaite, Pelham PR Tel: +44 20 7743 6676Joe Murray, Murray Consultants Tel: +353 (1) 4980300 John Craven, Chief Executive, Petroceltic International plc, is the qualifiedperson who has reviewed and approved the technical information contained in thisannouncement. John holds a B.Sc. in Geology from The Queens University ofBelfast, and an M.Sc in Petroleum Geology from Imperial College London, and hasover 20 years experience in oil & gas exploration and production. Definitions inthis press release are consistent with Society of Petroleum Engineersguidelines, which can be inspected at http://www.spe.org/spe-app/spe/industry/reserves/prms.htm * Source: Wood Mackenzie Energy Service 2007 Notes to Editors: Petroceltic International plc is a leading Upstream Oil and Gas Exploration andProduction Company, focused on the Mediterranean and North African area, andlisted on the London Stock Exchange's AIM Market and the Irish Sock Exchange'sIEX Market. The Company has exploration assets in Algeria, Tunisia and Italy anda royalty interest in the Kinsale Head gas field in Ireland. Petroceltic is ina unique position in Algeria, operating a significant licence in partnershipwith Sonatrach the state oil company, one of only three AIM listed companies toenjoy this position. This information is provided by RNS The company news service from the London Stock Exchange