Petroceltic Announces Interim Results and Operational Update

By John Lee.
Petroceltic International, the independent oil & gas exploration company with interests in Iraqi Kurdistan, has announced its results for the period ended 30 June 2012.
Highlights:

  • Proposed Merger of Petroceltic & Melrose Resources plc (‘Melrose’) announced 17 August.
  •  Declaration of Commerciality announced 9 August for the Ain Tsila Field in Algeria.
  •  Final Discovery Report filed with the Algerian Competent Authorities.
  •  Petroceltic estimates the Ain Tsila field to contain gross resources of 2.2 Tcf of sales gas, 70 MMbbl of condensate and 113 MMbbl of LPG.
  • Agreement reached with Sonatrach to market the Ain Tsila gas at a price linked to Brent oil price.
  • Seismic acquisition underway in the Kurdistan Region of Iraq.
  • Award of two licences in the central Adriatic, offshore Italy.
  • Italian Legislative Decree 83/2012 approved by Italian Parliament 12 August, provides for the potential resumption of activities offshore Italy.
  •  Preparations for drilling of high value Carpignano Sesia prospect (formerly Rovasenda) in Italy in early 2013.
  • Funded and well placed to continue to develop and grow the business. Cash position of US$51.1m at 27 August 2012 with no debt.

Brian O’Cathain (pictured), Chief Executive of Petroceltic commented:
This is a transformational time for Petroceltic, the proposed merger with Melrose has a compelling strategic and commercial logic, creating a regional leader with a diversified portfolio of producing, development and high impact exploration assets.
“Upon approval by shareholders of Petroceltic and Melrose of the proposed merger, the Enlarged Group will be well funded, capable of sustained long term growth and of delivering significant value to our shareholders.
“During the first half of 2012, Petroceltic has achieved some significant operational and commercial milestones in both Algeria and Italy, and has made good progress with seismic acquisition in the Kurdistan Region of Iraq.
“Our next important task will be the commencement of the development planning phase on Ain Tsila, in conjunction with our partners Sonatrach and Enel“.
Kurdistan Region of Iraq
The Dinarta (1,319 km2) and Shakrok (418 km2) blocks are operated by Hess and include a work programme commitment for the initial 3 year exploration period consisting of three components: geological fieldwork, acquisition of a minimum of 750 kilometers of 2D seismic data and the drilling of one exploration well in each block.
The geological field work has now been completed and the 2D seismic programme began in May 2012 with an intention to acquire approximately 850 kilometres of seismic data over the two blocks. It is anticipated that the first exploration well, most likely on the Shakrok licence, will be spudded in July 2013.