Posted: 14-Nov-04 at 21:05 | IP Logged

Confirmed last week drilling has commenced in Tunisia, expect news early December...$29m in the bank to fund further drilling, including Algeria, could be a double bagger on positive news within a month, long term, well spread portfolio protects downside. See below for background article...

Oilbarrel.com 15.10.2004

Irish Eyes On Tunisia As Petroceltic Gears Up To Spud Sidi Toui-3

Irish explorer Petroceltic International, which is sitting on a cash pot of US$29 million following a successful institutional placing, is set to spud its much-anticipated Sidi Toui-3 well in Tunisia within days. CEO John Craven said the company was looking forward to the drilling work, which should be completed in the second half of November.

The well will probe a 30 km-long structure that was tested in the 1950s with the Sidi Toui-1 well, which struck oil in the Ordovician 'Hamra' formation.

Petroceltic’s well will be drilled 4.5 km east of the earlier well and near the crest of the structure, which could hold more than 400 million barrels of oil. If that proves to be the case, Tunisia could prove to be a company-maker for the former mining outfit, which holds a 95 per cent stake in the well and the surrounding Ksar Hadada contract area.

Further prospects and leads have already been identified within the 7,500 sq km block: a decision whether to follow Sidi Toui-3 with a well on the Oryx prospect in the southern part of the permit will be taken in the next month or so, said Craven.

“Whether we’ll drill Oryx straight away depends on the results of the Sidi Toui well and on rig availability, because the rig market is really tightening up,” said the Petroceltic boss.

The company is keen to build a further key exploration area in North Africa. Algeria has restructured its licensing regime in recent years and is seeing increased exploration work as a result. Petroceltic was swift to pick up on these changes: in September it signed a production sharing agreement for the Isarene permit area in the Illizi Basin of southern Algeria. Three independent geological targets have already been identified within Isarene’s borders and a drilling campaign is planned for 2005 to evaluate these targets. Six discoveries have previously been made on the block, totaling some 380 billion cubic feet of gas and 28 million barrels of oil. However, figures from Petroceltic’s partner Sonatrach, the state oil company, suggest the Isarene block has the potential to hold 4 trillion cubic feet of gas and 400 million barrels of oil.

Petroceltic is now keen to pick up further acreage in the Isarene area. It has pre-qualified as an operator for the country’s sixth international bid round, in which 10 blocks have been put up for auction including acreage near the Isarene block.

Craven praised the Algerians for the transparency and speed of their bidding arrangements. “The last bid round worked almost like clock work,” he said.

Across the Mediterranean, the company hopes to drill its first well in Italy next year in offshore block BRG 490. “We will probably drill the Miglianico East prospect in the middle of the year,” said Craven.

For now, however, all eyes will be on Tunisia: Sidi Toui-3 could mark another transformation in the short oil career of the AIM-quoted firm.
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Posted: 15-Nov-04 at 11:24 | IP Logged

Xsurfer

Been in these for a month or so. Looks a great prospect. I've been looking around the www for news but their website seems to be the only source. Have you found news anywhere else?

EM

Posted: 15-Nov-04 at 12:58 | IP Logged

Been is this share since it was called ennex in the late 90ties. I bought at  mid 20ties in Irish pence and had them written off along with shares I had in Petrel. Petrel has come very good but I have received no real news in this share anyone have any.

rgds

Edmond

Posted: 15-Nov-04 at 13:04 | IP Logged

Hi all,

I've bought some shares last month, too.  It looks good enough to me, so fingers crossed.....

Sabine

Posted: 15-Nov-04 at 14:31 | IP Logged

Very positive report on the company website.  Says share price prediction is  32p within 3 months and more if the Tunisia drilling goes well.

Here is keeping fingers crossed.  Between this and Petrel this could be a very grood christmas for me.

http://www.petroceltic.ie/downloads/petroceltic_19_10_04.pdf

Posted: 16-Nov-04 at 12:49 | IP Logged

DENIS,

WHEN ARE THEY DRILLING IN TUNISIA , 32P WOULD BE VERY NICE ,

Posted: 16-Nov-04 at 13:08 | IP Logged

Edmond

They had already commenced drilling - about 4.5 km from the site of a very large discover made some years ago.

Posted: 17-Nov-04 at 08:21 | IP Logged

Anyone any idea how long it takes to get results on drilling