RNS out giving confirmation of completion of Ain Tsila 1 well:
http://www.investegate.co.uk/Article.aspx?id=200908040700068057W
Crucially the logs show gas discovered in target Orduvician sands.
This structure is a biggie (see other threads re size). Rig now moving for AT2 well. Testing of the AT1 well will start soon and then the previous well.
PCI now starting to deliver on its programme in Algeria and SP should now be more geared to news in the short term.
Ain Tsila - 1,381 BCF
CoS - 66% Geological, 50% Development
Nice.
Wireline log information and drilling data have confirmed gas bearing intervals in the objective Ordovician sands, which are in line with expectations.
Brian O'Cathain, Chief Executive of Petroceltic, commented:
'We are pleased that our Isarene drilling operations are on time and on budget. The AT-1 logs look encouraging and we look forward to well test results in the near future'.
Davy morning report http://www.rte.ie/business/2009/morningrep/download/0804davy.pdf
Petroceltic's first well on the large Ain Tsila ridge structure on its Algerian licence
has found gas in the targeted Ordovician sands. The productivity of the sands will
now be tested, with results expected in September. Reservoir productivity or
permeability is the key challenge to commercial operations in this part of Algeria.
Petroceltic is targeting flow rates in excess of 5 mmscfd, although Sonatrach's
estimate of a good, commercial well may be more lenient (Sonatrach is the state oil
and gas company and Petroceltic's 25% partner on its Algerian licence).
We reiterate our price target of 24p per share.
From my post on the Tristone Upgrade to 27p:
Worth remembering the neighbours in Algeria are Total with 8TCf of Gas and 840 mm blbs. Also BP with 5TCCf and 260 MM Bbls. Tristone give a P10 for Ain Tsila of 5TCF and 113 MM bbls for HTT and ISAS. The key question is not whether there is gas, but whether a commercial flow can be achieved (estimated by PCI as over 5 MMcfd).
