Petroceltic Provides Operational Update in Algeria

Petroceltic International plc, the independent oil & gas exploration company focussed on the Middle East, North Africa and Mediterranean is pleased to announce an operational update on its current drilling activity in Algeria.

Ain Tsila Field. (Petroceltic Interest 75%, Operator, partner Sonatrach, 25%):
Preparations for the 2010/2011 Ain Tsila field appraisal campaign, which will commence in November and continue into Q2 2011, are progressing well. Civil engineering works have been completed at the AT-4 well location on the Ain Tsila discovery in Algeria and the site is now ready to receive the Dalma No. 12 rig for the commencement of drilling.

It is currently estimated that the AT-4 well will commence drilling in the first week in November. The AT-4 well is scheduled to take around 40 days to drill and will be the first in a multi-well appraisal drilling programme that will continue over the next six months on this substantial discovery.Each well in the current campaign will be tested and, if necessary, fracture stimulated without using the rig.

Currently three well locations have been approved by the partnership. It is anticipated that a fourth well will be drilled with this rig under the existing contract.AT-4 will be a vertical well, whereas AT-5 and AT-6 are planned as horizontal well tests of the Objective Ordovician formation.

The main focus of this appraisal programme will be to confirm the most likely recovery factors, to optimise the development plans for the discoveries and likely gas sales contracts. Petrocetic expects to confirm the recoverable hydrocarbon reserves estimates associated with the discoveries after completion of the appraisal work programme.

The previous 2009/10 five well drilling and testing programme on the Isarene permit discovered a major new gas condensate discovery in the Ain Tsila field. Data from the three wells drilled have demonstrated the presence of an extensive and probably continuous gas accumulation capable of flowing at rates exceeding 30mmscf/d following fracture stimulation.