Petroceltic International plc, the upstream oil and gas exploration and production company focused on Middle East, North Africa (“MENA”) and the Mediterranean is pleased to announce its Interim Results for the six months to 30th June 2010.
· Successful five-well Algerian drilling and testing programme completed in February 2010 with a major Ordovician gas condensate discovery made at Ain Tsila. Gas Initially in Place (“GIIP”) estimates for the field are currently in the range of 2.6-10.3 TCF with a P50 estimate of 5.5 TCF.
· Two year PSC appraisal extension signed with Sonatrach in April 2010. A three-well Ain Tsila appraisal drilling programme has been agreed with an optional fourth well.
· Rig services contract awarded to Dalma Energy in July 2010 for Algerian drilling programme. The first two well locations have been approved by Sonatrach with the first well due to spud in early October.
· Farm-out of Petroceltic’s Tunisian acreage to PetroAsian in 2009, which fully funded Petroceltic’s US$14.5 million two-well drilling programme in 2010.
· The first well in Tunisia, Oryx-1, found no significant hydrocarbons. The well was drilled on budget to target depth of 1140m in July 2010. The Sidi-Toui 4 well commenced drilling in August 2010 and is currently drilling ahead.
· US$26.1 million raised in June 2010 towards Italian Elsa-2 oil discovery appraisal well in farm out to Orca Exploration and investment agreement with Gemini Oil and Gas.
· Elsa-2 well preparations suspended by Petroceltic in July 2010 as legislative changes may prohibit drilling for oil in Italian seas within 5 nautical miles of the coastline and within 12 nautical miles around the perimeter of protected Marine Parks.
· Significantly oversubscribed US$ 120 million placing completed in April to fund future drilling programmes.
· Cash of US$ 108 million at period end.
· Loss of US$ 5 million for the period.
Commenting, Brian O’Cathain, Chief Executive, said:
“Algeria is the cornerstone of the Petroceltic investment story and despite some changing circumstances in other areas of the world the underlying investment case remains as strong today as it has ever been. In the first half of 2010, we have seen some solid progress made. We have put in place the capital and resources to exploit our world-class discovery in Algeria, and have made good progress in Italy and Tunisia, despite challenging circumstances. We are focused on the exploitation of our valuable Algerian discovery first and foremost and we remain confident that the appraisal programme for the Ain Tsila gas condensate field, due to start in October 2010, will further de-risk and demonstrate the value of this important asset. We are also exploring opportunities to expand our portfolio into areas that exploit our competencies in exploration, deal-making and operating in challenging environments”.
Source: Petroceltic,September 14, 2010,