Petroceltic Starts Development Drilling on the Ain Tsila Field, Algeria
Petroceltic has started development drilling at the Ain Tsila gas and condensate field in Algeria.
According to a press release, the field's first development well, AT-10, was spudded on February 21 at 18:00. The well, one of up to 24 planned, is 3.4 km from the field's initial discovery well and 2 km from the appraisal well. Petroceltic has seen encouraging results from its first two wells, with each of the initial wells delivering gas flow rates in excess of 30mn ft³/d on test.
Additionally, it said the tender of the major field engineering, procurement and construction (EPC) contract covering main field facilities and pipelines was progressing.
The announcement of the start-up of development drilling comes just three days after Petroceltic said that it had completed the sale of its interests in three exploration licences in Egypt to Italian energy company Edison. On February 18, Petroceltic said the sale was part of its strategic initiative to concentrate on the Ain Tsila asset.
The sale was completed for a cash consideration of $9.5mn, after working capital adjustments of about $5.8mn.
Financial operations continue to be difficult for the Irish explorer, which has also announced an update about its senior bank facility. It said that, following its announcement of its strategic review on December 23 2015, it has received a further waiver of repayments under its senior bank facility to March 4.
The waiver is conditional upon "continued satisfactory progress in relation to the progress of the various initiatives being undertaken pursuant to the strategic review," the update said. Petroceltic indicated that its lenders are willing to consider such waivers again in the future as required to continue the strategic review process.
Erica Mills