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26/01/2012

Petroceltic CEO Brian O’Cathain says he’s excited about the Kurdistan prospects

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Market:	AIM
Sector:	Energy
EPIC:	PCI
Latest Price:	8.00p (-0.99% )
52-week High:	14.00p
52-week Low:	3.80p
Market Cap:	189.57M

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Petroceltic International
www.petroceltic.ie

Petroceltic is an upstream oil and gas exploration and production company with headquarters in Dublin, Ireland and with interests in Algeria, Kurdistan Region of Iraq, Italy and Ireland.

Full Petroceltic International profile here

Petroceltic reports commercial flow rates at INE-2 well at Isarene oil and gas project

17th Nov 2009, 9:12 am Petroceltic reports commercial flow rates at INE-2 well at Isarene oil and gas project

Irish oil and gas explorer Petroceltic International (AIM: PCI) has reported successful results from a test of the Objective Devonian F2 formation, where the INE-2 well demonstrated a commercial flow rate.

The INE-2 well flowed at 4 mmscfd (million standard cubic feet per day), following the INE-1 well, which flowed at 4.4 mmscfd, while a previous well, TMZ-1 flowed at 4.1 mmscfd. Another well on the structure, GTT-1, tested oil at rates of 490 barrels per day.

The INE-2 well marked the commencement of the current drilling campaign on the Isarene permit in the Illizi basin, targeting the Devonian F2 sands in ISAS, a separate structure in the same area of the basin as the recently announced Ain Tsila ridge discovery.

“This additional discovery on the block is helpful in adding to the hydrocarbon inventory proved as potentially commercial on the licence. It forms a separate shallower accumulation to the previously announced AT-1 Ordovician discovery,” said Chief Executive of Petroceltic Brian O’Cathain.

The INE-2 well has now been completed for possible future use as a production well.

The company is now expecting to delineate both Devonian discoveries, INE-2 and HTT-2, and the Ordovician discovery at AT-1 in the next phase of its production sharing contract. Testing of the AT-2 well is about to commence as the AT-3 location 9 km south of AT-2 is being drilled to continue the appraisal of the Ain Tsila Ridge structure.

Petroceltic operates and holds a 75% interest in the Isarene block jointly with Algeria’s government-owned oil and gas company Sonatrach holding the other 25%.

A joint technical study carried out with the operator of the adjacent block 226 in 2007 concluded that at the F2 level the structure extended into both blocks, across a distance of 20 km (kilometres) north to south.

Petroceltic has recently reported better than expected results from flow tests conducted at the recently hydrofractured AT-1 well and the gas discovery in the AT-2 exploration well, prompting stockbroker Mirabaud to retain its “buy” recommendation for the stock and set the target price at 22.5 pence. Irish stockbroker and financial adviser Davy rated the company as “outperform” and set the target at 27 pence.

Stockbroker Davy noted today’s update from Petroceltic, saying it did not see any major increase in pre-drill resource estimate for this structure, which currently stands at over 300 bcf, and which will be part of an overall gas development programme with the very large but separate An Tsila ridge. Davy added that the ISAS structure played a lesser role in its risked valuation of the group, but the drill results and flow rate provided “solid confirmation of the quality of the Isarene license in general.” The target price for Petroceltic was left unchanged at 27 pence.

The company also holds interest in permits in Italy and Tunisia.

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Petroceltic CEO Brian O’Cathain says he’s excited about the Kurdistan prospects

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Petroceltic reports commercial flow rates at INE-2 well at Isarene oil and gas project

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