Petroceltic International Plc (LON:PCI) has revealed that development drilling is going to plan in Algeria.
The AT-10 well is the first of up to 24 development wells to be drilled at the group’s flagship Ain Tsila gas and condensate field.
It was drilled to a depth of 2,005 metres, and penetrated a 61 metre gas and condensate zone.
Analysis of the well results indicated that AT-10 is in line with the pre-drill prognosis, and the anticipated offtake rates are comparable to certain previous wells which delivered flow rates of 30mln cubic feet per day during testing, Petroceltic said.
Petroceltic owns 38.25% of Ain Tsila, alongside partners Enel (with 18.375%) and Algeria’s state-backed Sonatrach which owns 43.375%.
The Ain Tsila development is designed to establish a plateau production rate of 355mln cubic feet per day.
"We are delighted that AT-10 result confirms the success of earlier wells in the highly productive northern part of the field,” said Brian O’Cathain, Petroceltic chief executive.
O’Cathain also highlighted that contractor Sinopec and the drilling rig performed above expectations with the AT-10 well and there are also further improvement initiatives planned to reduce future well costs.
“We anticipate further operational updates and enhancements to the development plan in the near future," he added.
The positive operational update comes amid uncertainty over the group’s future.
A hearing in the High Court of Ireland, brought by activist shareholder Worldview Capital, had been scheduled to take place on April 4 but in a separate stock market statement Petroceltic told investors the date has moved to April 8.
Worldview applied in March to the court to have Petroceltic into ‘examinership’, which is a bankruptcy protection status that it broadly equivalent to America’s ‘Chapter 11 bankruptcy’.
Also in March, Worldview’s Economic Recovery Fund acquired 69.44% of Petroceltic’s debt under its senior bank facility at what it described as a ‘significant discount’ to face value.
Yesterday, it revealed that the fund had now sold 32% of Petroceltic’s debt to an independent third party investor.