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Petroceltic Provides Algeria Drilling Update

Source: www.gulfoilandgas.com 12/18/2006, Location: Africa

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Petroceltic International plc announce the following results of flow testing from the recently completed Hassi Tab Tab 2 (HTT 2) well and the earlier ISAS 1 well. ISAS 1 (First exploration well which satisfied the PSC obligation)

A total of 1.210 million standard cubic feet per day (mmscf/d) of gas was tested from 2 geological horizons, the Devonian F2 and the Carboniferous Visean B. Both had sustained gas flows and stabilised well head pressures. However evaluation of the test data indicated formation damage at the Devonian F2 horizon, which severely reduced the flow rate during this test. In addition small amounts of gas were produced from an open hole test in the Ordovician.

Hassi Tab Tab 2 (Located 40 kms west of ISAS 1)

A total of 15.44 (mmscf/d) of gas was tested from 3 geological horizons, the Devonian F2, the Carboniferous Tournaisian and the Carboniferous Visean B. All had substantial flows and stabilised well head pressures.

In accordance with the provisions of the PSC, a Declaration of Discovery for both wells has been submitted to Sonatrach. Petroceltic will provide updates regarding progress on this issue in due course.

John Craven, CEO of Petroceltic, commented:"I am extremely pleased with the well test results. In particular the gas flow rate from the Devonian F2 in HTT 2 is one of the highest for this horizon in the Illizi Basin."

"Furthermore, the well results have confirmed the potential for commercial exploitation of these shallow, laterally extensive, hydrocarbon reservoirs in this part of the Isarene Permit and we are currently reviewing all options with respect to the appraisal and development of the ISAS/Hassi Tab Tab area".

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