News

September 24, 2009

Key Well Test In Algeria Exceeds Expectations For Petroceltic International

Shares in Petroceltic International sustained the steady rise of the past month on Tuesday when the AIM-listed firm announced the test results from its first well on the giant Ain Tsila structure in the Isarene permit in Algeria. The AT-1 well flowed 11.4 million cubic feet of gas per day and 210 barrels of condensate per day on a two-inch choke setting, and 7.75 million cf/d and 233 bcpd on a 32/64 inch choke, exceeding pre-drill expectations. What’s more, these were natural flow rates and not fracture stimulated, a technique that would likely yield higher rates from these tight Ordovician rocks. The shares gained over four per cent to close at 18.5 pence on news of the test result, adding to the gains of the past month that have seen the share price rise some 40 per cent since mid August.

This result appears to provide some confirmation of the potential that Petroceltic has long claimed existed on its large Isarene Permit in Algeria’s under-drilled Illizi Basin. That potential is really being put to the test this year, with the company committing to a five-to-seven well programme to follow-up existing discoveries on the 7,500 sq km licence (there have been 16 wells drilled here to date, with Petroceltic responsible for the two most recent) in order to prove up the commercial...