Petroceltic Announce Algeria operational update
Petroceltic International plc (AIM: PCI) (“Petroceltic” or the “Company”), the oil and gas exploration, development and production company, is pleased to announce the start of development drilling on the Ain Tsila gas and condensate field in Algeria.
The newly built SINOPEC Rig 50117 arrived on the Isarene permit during November 2015, was assembled successfully on site, and has now passed acceptance testing. At 18:00 on 21 February 2016 development well AT-10, the first well of the Ain Tsila development drilling campaign, was spudded.
AT-10 is located in the north of the field approximately 3.4 km from the field discovery well AT-1, and 2.0 km from the appraisal well AT-8; each of these wells delivered gas flow rates in excess of 30 MMscfpd on test. This vertical well is targeting the Ordovician reservoir formation to a planned total depth of 1,989m MD. AT-10 is the first of up to 24 new development wells on Ain Tsila expected to be required to establish and maintain the currently approved annual average wet gas plateau rate of 355 MMscfpd.
In addition to the commencement of development drilling, the tender of the major field Engineering Procurement and Construction (”EPC”) contract covering main field facilities and pipelines is progressing.
Petroceltic holds a 38.25% interest, Sonatrach a 43.375% interest, and Enel an 18.375% interest in the Isarene PSC. Petroceltic continues to benefit from a carry of its development costs in respect of Ain Tsila following the completion of the sale of an 18.375% interest to Sonatrach in July 2014.
Commenting on the update, Brian O’Cathain, CEO of Petroceltic said:
“We are delighted to start development drilling on Ain Tsila and look forward to building on the success of earlier wells in the highly productive northern part of the field. Ain Tsila is a world-class asset and the main focus of our business. We are collaborating with our partners on a number of opportunities to reduce overall development risk and enhance long term-field recovery and value, and these will be progressed in parallel with the EPC award process.”
Source: Petroceltic International plc
Oil and Gas News Undiluted !!! “The squeaky wheel gets the oil”
Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook