Petroceltic confirms new gas discovery in Algeria's Isarene block

Petroceltic International, the upstream oil and gas exploration and production company focused on North Africa and the Mediterranean, has announced that well AT-1, on the Isarene Permit in Blocks 228 & 229a, Algeria, has been successfully tested at the Ordovician (Unit IV) zone at a depth of 1,915 m.
The well flowed 11.4 mm cfpd of gas (13,451 cm/hour) with a flowing wellhead pressure of 205 psi on a 2 inch choke setting, and at a rate of 7.75 mm cfpd (9,144 cm/hour) with a flowing well head pressure of 1,458 psi on a 32/64 inch choke setting.

The associated condensate rates were 210 barrels of condensate/day on a 2 inch choke setting, and 233 barrels of condensate/day on a 32/64 inch choke setting. The well was tested under natural flow and was not fracture stimulated. Testing and sampling operations at the well have now been completed.
Wireline logging results at the well were better than pre-drilling estimates, due primarily to the confirmation of a deep gas water contact at 1,948 m, and better than expected reservoir porosity and permeability values in the objective horizon. The well has been completed for possible future use as a production well.

The AT-1 well is the second well in the current drilling programme on the Isarene permit in the Illizi basin, Algeria. The successful test demonstrates the high gas potential of the Ain Tsila ridge discovery at this location. The well was drilled by Petroceltic (75 % interest, Operator) in association with the Algerian oil and gas company Sonatrach (25 % interest).
The AT-2 well, the second on the Ain Tsila field, is currently coring in the objective Ordovician formation. The forward plan for AT-2 is to continue coring the objective reservoir section, then to log the objective zone. The INE-2 well is now scheduled for testing after the completion of the AT-2 well.

This is the third gas discovery tested by Petroceltic on the Isarene permit. In 2006, the Company tested gas from the shallower Devonian and Carboniferous objectives in wells HTT-2 (15.4 mm cfpd from 3 zones) and ISAS-1 (1.2 mm cfpd from 2 zones).
Brian O'Cathain, Chief Executive of Petroceltic, commented: "We are delighted with the results of the AT-1 well test. This test exceeds our pre-drilling expectations, and is the most prolific single zone well test on the Isarene permit to date. The potential hydrocarbon resources associated with the Ordovician Ain Tsila ridge structure are an order of magnitude larger than our earlier discoveries on this permit. These well results confirm the significant commercial potential of the Isarene permit to Petroceltic and our partner Sonatrach. We look forward to reporting results from the AT-2 well in the near future".