Petroceltic announces encouraging early results from Isarene well

Petroceltic has discovered "larger-than-expected" quantities of gas in AT-5 well on the Isarene permit in Algeria. The drilling, which began on 9th January, reached a total depth of 2,049 metres on 2nd March after drilling delays caused by equipment failures on the contracted drilling rig.

Logs at AT-5 showed the objective Ordovician reservoir to be fully gas bearing, and a gross gas column of 75.5 metres was logged, with no gas water contact seen in the well. The company is testing what it calls a “major pop-up” feature in the north of the field associated with enhanced un-stimulated gas productivity.

Petroceltic's Chief executive Brian O'Cathain said: "The results of well AT-5 are encouraging to date, the presence of natural fractures at this location augurs well for the test results, and the overall gas column logged was greater than expected at this location.”

Sources: Irish Independent, Oil Voice, Petroceltic Investors

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

Algeria set to account for 8.91 per cent of African oil demand by 2014

The latest Algeria Oil & Gas Report, compiled by BMI, forecasts that the country will account for 8.91 per cent of African oil demand by 2014, and will be responsible for 19.57 per cent of overall supply. It is expected that African regional oil use will average at 3.66mn b/d in the latter part of 2010, and then rise to around 4.13mn b/d by 2014.

Regional oil production, in 2009, averaged at an estimated 9.79mn b/d. It is set to rise to 12.52mn b/d by 2014. Oil exports show gradual growth, because demand growth is stalling the pace of supply expansion. In 2001, Algeria was exporting an average 4.86mn b/d. This total rose to an estimated 6.19mn b/d in 2009, and is expected to reach 8.40mn b/d by 2014.

Algeria's demand for natural gas is expected to reach 191bcm for 2014, production of approximately 385bcm, which suggests a rise of net exports from 124bcm in 2009 to 193bcm by the end of the period. In 2009, Algeria's share of regional gas supply was an estimated 40.40%, easing to 36.39% by 2014. The country's share of demand in 2009 was an estimated 21.03%, with 17.63% predicted by 2014.

Algeria is currently at the top of BMI's composite Business Environment (BE) ratings table, which combines upstream and downstream scores. It is third, between Gabon and Nigeria, in the updated upstream Business Environment Ratings. The country's rating is boosted by healthy oil and gas reserves, a large number of non-state companies active in the upstream sector and decent licensing terms.

Source: Companies and Markets

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