Petroceltic International PLC (LON:PCI) reported that the first of four wells in the current Ain Tsila appraisal campaign has successfully achieved its objective of confirming the presence of a gas column.
Drilling of the AT-4 well in the Isarene permit in the Illizi Basin in South Eastern Algeria encountered a gross gas column of 155 metres with no gas-water contact observed.
Reservoir pressure readings indicated that the main Ordovician gas reservoir in this area is in the same pressure regime as that encountered at wells AT-1, AT-2, and AT-3.
AT-4 is located approximately 10 kilometres to the east of AT-2 and is the first well to be drilled on the eastern flank of the field. The principal objective of the well was to determine the nature and extent of the gas in place in this previously undrilled area of the field.
The well has now been suspended, pending rigless fracture stimulation and flow testing over the coming month.
At the weekend, Petroceltic spudded appraisal well AT-5 and it expects drilling to take approximately 65 days.
Chief executive Brian O'Cathain said: "The first well in the current Ain Tsila appraisal campaign has successfully achieved its objective of confirming the presence of a gas column with pressure continuity on the previously undrilled eastern flank of the field. Whilst AT-4 was designed with a primary focus on proving up gas in place rather than productivity, we are optimistic for a positive outcome from testing.
“The next well in the appraisal drilling programme (AT-5) will test the potential for encountering natural fractures in horizontal wells, in addition to the potential for multiple fracture stimulations to improve productivity and recovery factor for the field,” he added.
Petroceltic is in the process of securing a farm-down partner for its Algerian gas field and is looking at sealing a deal with an oil major or possibly a gas distribution company active in the European market.
The group has a 75 percent share of the Isarene licence, valued by industry experts Wood McKenzie at US$733 million, with the remainder spoken for by the state-owned oil and gas company Sonatrach.
Any deal will have to be approved by Sonatrach, but Petroceltic has a good working relationship with them.