Petroceltic upbeat over Algerian field

PETROCELTIC remains on course to see commercial gas flows from its Isarene field in southern Algeria by 2015, after encountering better than expected results from its latest round of test drilling in the area.

The Dublin-headquartered oil and gas exploration company announced yesterday that logging and drilling of the AT-5 well at Isarene has been completed after a two-month period blighted by drilling delays — with it proving to be fully gas bearing and logging 75.5 metres of gross gas column.

Petroceltic 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. We’re looking forward to the AT-5Z well test results, now expected in May.”

The AT-5 well was being drilled to test a major ‘pop-up’ feature — a feature that generally is associated with high natural fracture densities and, thus, enhanced gas productivity.

The entire Isarene field — classed as being the tenth biggest oil and gas find when discovered two years ago — covers an area larger than Greater Dublin and is estimated to be around twice the size of the Kinsale Gas Field off the south coast of Ireland.

Mr O’Cathain has called it “a very big find” and “a huge undertaking for a company like Petroceltic” and one which will need investment of $1 billion (€703m) to make fully commercial.

The company’s current drilling round is likely to run to the end of the third quarter of this year, after which Petroceltic will submit a full development plan, for the field, to the Algerian Government.