Tuesday, 27 July 2010

Petroceltic signs new drilling-rig contract

Petroceltic has signed a drilling rig contract with Dalma for their land rig 12. The 2000 horsepower drilling rig is currently stacked in Hassi Messaoud, Algeria, and is set to be mobilised immediately to the Isarene permit for appraisal of four wells.

Rig 12 has been in Algeria since its construction in 2007, and is expected to be on location ready to begin drilling in October 2010. The duration of the programme is expected to be between six and seven months, and will focus on appraising the gas discoveries made on the Isarene permit by Petroceltic during 2009/10. The programme is funded by the US$120 million equity placing completed by Petroceltic in April 2010. Petroceltic has a 75 per cent interest in the Isarene permit in association with Sonatrach, the Algerian state Oil and Gas Company holds the remaining 25 per cent.

“Securing this rig is a significant step towards re-starting drilling operations on the Isarene permit. We expect to drill a minimum of four appraisal wells including at least one horizontal well. Drilling operations are scheduled to start in October 2010, as originally planned, with a view to the submission of a development plan to the Algerian Authorities at the end of this appraisal campaign. We intend to announce results following completion of the individual fracture stimulation and well testing programmes for each well,” said, chief executive of Petroceltic, Brian O’Cathain.

To find out more about Petroceltic please visit Petroceltic’s web site, which you can find here.

For more news and expert analysis about Algeria please see Algeria Focus, Sahara Focus and Algeria Politics & Security.

© 2010 Menas Associates

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