Petroceltic International
www.petroceltic.ie
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.
Petroceltic International unveils excellent flow test results from AT-9 well in Algeria
Petroceltic International (LON:PCI) this morning unveiled excellent flow test results from the AT-9 well on the Ain Tsila gas field in Algeria.
The well produced gas at a combined rate of 52.8 million cubic feet per day (mmscf/d) during the test, with 43.9 mmcf/d coming from the Upper Zone and 8.9 mmscf/d from the Lower Zone. The well also produced over 1,200 barrels of condensate a day.
This is the highest pre-fracture stimulation flow rates achieved on the Ain Tsila field to date. The group’s 2011 Algerian appraisal programme is now complete.
The AT-9 well has now been suspended as a future production well. It will be fracture stimulated at a later date, during the development phase.
Chief executive Brian O’Cathain says the well could produce at a rate of 60 million cubic feet a day on a sustained basis once it is has been fracture stimulated and it is in full production.
"We are delighted to have achieved such excellent flow results from the Ordovician reservoir at AT-9 without fracture stimulation,” O’Cathain said.
“This result confirms the improved reservoir quality indicated by well log analysis and significantly extends the area of excellent productivity within the Ain Tsila Field.
“This is the third of our nine appraisal wells to flow at very high rates, and supports the production profile anticipated at field start up.”
He added: “The AT-9 result further refines our understanding of this field and is likely to have a positive impact on recoverable reserves.
“In addition, this result strongly supports commercialisation of the field and the current FieldDevelopment Plan which will be submitted to the Algerian competent authorities in January 2012."
Petroceltic has successfully proven gas in all six wells that were completed during the 2011 appraisal programme. And three of these wells tested gas at rates above 33 mmscf/d.
The company has a 56.625 per cent in the Ain Tsila field, alongside partners Sonatrach and ENEL who own 25 and 18.375 per cent respectively.
In a recent interview with Proactive Investors Brian O’Cathain said that Ain Tsila is on track now to become a world class resource. He described it as a very large discovery and said that Petroceltic is delighted to be associated with it.”
Indeed a farm-out deal with ENEL – Europe’s second largest utility company – was a telling endorsement of the project’s potential.
The deal to sell an 18.375 per cent stake in the Isarene licence, which hosts Ain Tsila, for at least US$101.75 million (including back costs) was initially struck in April this year and Petroceltic is now awaiting its first payday under the agreement.
That deal is expected to close shortly. And once it does Petroceltic will be due around US$100 million in cash. A further pay-out will follow next year. That will be in the order of US$30 to US$75 million depending on the amount of recoverable reserves that’s defined through the appraisal work.
