Petroceltic International PLC signed for drilling rig services for Dalma Energy LLC in Algeria

Monday, Jul 26, 2010

Petroceltic International PLC (“Petroceltic” or “The Copmany”), the upstream oil and gas exploration and production company signed a contract for drilling rig services with Dalma Energy LLC, a Dubai based drilling contractor, for their land rig no. 12 200 horsepower drilling rig.  Currently in Hassi Messaoud, Algeria the rig will begin mobilisation to the Isarene permit, for a drilling programme of four appraisal wells.

The No. 12 rig has been in Algeria since it was newly constructed in 2007 and is expected to be on location ready to commence drilling in October 2010 as originally planned. The drilling and testing programme is expected to be between six and seven months.

Brian O'Cathain, Chief Executive of Petroceltic commented: "Securing this rig is a significant step towards re-starting drilling operations on the Isarene permit. We expect to drill a minimum of four appraisal wells including at least one horizontal well. Drilling operations are scheduled to start in October 2010, as originally planned, with a view to the submission of a development plan (Final Discovery Report) to the Algerian Authorities at the end of this appraisal campaign. Our interpretation and analysis of the results from the five well programme in 2009/10 is progressing, supporting our belief that the Ain Tsila gas condensate discovery, on the Isarene permit, may turn out to be a world class hydrocarbon resource. We intend to announce results following completion of the individual fracture stimulation and well testing programmes for each well."

Source: Red Mist Media