Drilling at the site began in June and the new test results have shown that it holds a commercial flow rate.
The site forms part of the Isarene Block on the ISAS structure and is located close to the Ain Tsila Ridge discovery, which Petroceltic made earlier this year, and which has just been listed as the 10th largest gas discovery in the world this year.
It is also understood that it will prove relatively easy to put the well into production as it lies next to an already producing field where there is a gas pipeline.
“We are pleased this well has demonstrated a commercial flow rate at this location,” said Petroceltic chief executive Brian O’Cathain.
The company’s share price was stable at 18c yesterday, although Davy Stockbrokers has slapped a 27c price target on the stock.
“The smaller scale of the ISAS structure means it plays a lesser role in our risked valuation of the group, but the drill result and flow rate provides solid confirmation of the quality of the Isarene licence in general,” said Davy analyst Job Langbroek in a research note on the company, yesterday.
Meanwhile, the ownership of middle-eastern exploration company, Dragon Oil, which has its shares listed in Dublin and London, is unsure.
The Emirates National Oil Company controls 52% of Dragon, but said its recent offer of 455p per share for the remaining 48.5% it doesn’t own is its final offer and will not be increased.
Dragon’s share price in Dublin was down by nearly 6%, or 29c, at €4.60 yesterday.