PCI.L Regulatory News (PCI)

29 Jan 2007 07:01

Petroceltic International PLC29 January 2007 Press Release Petroceltic International plc ("Petroceltic") OPERATIONAL UPDATE - PLANS FOR 2007 Following the recent drilling success in Algeria, Petroceltic is pleased to givethe market an update on activities and operations on its oil and gas portfolioand to outline its intended operational activities for 2007. In what promises to be a busy and exciting period for Petroceltic, the followingwork streams will be prioritised: Algeria Isarene Permit (Petroceltic 75% working interest) • The Hassi Tab Tab (HTT-2) and Isas (ISAS-1) discoveries, announced toshareholders on 15 December 2006 confirm the potential of the Isarene block.First steps to commercialisation have been initiated with discovery reports forHTT-2 and ISAS-1 submitted to our partner, the Algerian State Oil CompanySonatrach. Field delineation programs will follow. The Hassi Tab Tab and Isasdiscovery areas capture six pre existing gas discovery wells and one oildiscovery. These wells, which were drilled by previous operators, flowedhydrocarbons from geological horizons in the Ordovician and the Devonian withinthe same prospect area as HTT 2 and Isas 1. • In 2007 seismic and drilling is to commence on the most significantprospect in the permit area "the Ain Tsila Ridge". Prospective gas resources forthe Ain Tsila Ridge are estimated by Petroceltic to be in the range of 2 to 6trillion cubic feet. • Other prospects in the Southern part of the permit area are being highgraded in preparation for drilling activity. • Dialogue is ongoing with large multinational industry players withrespect to forming a strategic alliance in order to maximise the gas potentialof the Isarene permit, subject to the approval of the authorities in Algeria. Italy blocks B.R268.RG& Civitaquana (Petroceltic 40% working interest) • Complete the technical evaluation of the Elsa oil discovery prospect and the possible extension of the Miglianico oil field into block B.R268.RG. • Finalise drilling feasibility studies B.R268.RG. • Drilling operations on block B.R268.RG planned to commence Q4 2007, subject to partner and regulatory approvals. • Nine new license applications have been lodged primarily targeting the Elsa/Miglianico oil fairway (Petroceltic 100%). Petroceltic is expecting to be notified of permit exclusivity at the end of February 2007. • Continuous screening for corporate acquisition opportunities is to continue. Tunisia (Petroceltic 60% working interest) • Drilling activity through farmout will remain the strategy. • One to two wells are planned on the Sidi Toui and/or Oryx structures in 2007. Ireland Kinsale Gas Field (Petroceltic royalty interest) • Gas production continues to perform well. • 2006 net income to Petroceltic in excess of $1 million. Balance Sheet • Cash of approximately $30 million post 2006 drilling with no debt. John Craven CEO of Petroceltic said: "The drilling success in 2006 confirms the potential of our Isarene block inAlgeria. These HTT 2 and Isas 1 discoveries have added significant value to theIsarene Permit and are the platform on which to drive our Algerian businessforward towards commercial exploitation. In particular, we are looking forwardto commencing seismic and drilling activities at our largest prospect, the AinTsila Ridge. Our planned drilling program for 2007 into 2008 reflects thesignificant potential across our asset portfolio. With our robust balance sheet,Petroceltic is well positioned to create value for shareholders over the comingmonths." 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. Ends Press queries to: John Craven Petroceltic International plc Tel: +353 (01) 495 9285 Ronnie Simpson Simpson FT PR Tel: +353 (01) 260 5300 Billy Clegg Financial Dynamics Tel: +44 (0)207 2697157. This information is provided by RNS The company news service from the London Stock Exchange