Oil & Gas Corporate News
Petroceltic (LON:PCI) International plc (PCI, 5.40p, ? 18.94%) announced that fracture stimulation of the AT-8 well on the Ain Tsila discovery in Algeria has further enhanced the substantial pre-facture flow rates announced earlier this month to 38.6 mmscf/d. In addition the well has produced over 1,100 barrels per day of condensate. Following the pre-fracture stimulation results announced on 3rd October 2011, the upper Ordovician interval of the AT-8 well was successfully fracture stimulated. The well has subsequently produced 38.6 mmscf/d with 1,181 barrels per day of condensate on a 96/64" choke and with a flowing well head pressure of 1,393 PSIG. Pre-fracture gas flow rates at AT-8 were 15.4 mmscf/d. The Company operates the Ain Tsila field on its Isarene permit (Blocks 228 & 229a) in south eastern Algeria. Petroceltic operates the permit with a 56.625% interest, Sonatrach holds a 25% interest, and Enel holds an 18.375% interest, pending final Government of Algeria ratification. The Company also announced the agreement of a 12-month US$30 million Bridge Facility with Macquarie Bank Limited ("Macquarie"). In accordance with the terms of the commitment, Petroceltic has granted Macquarie 15 million warrants to subscribe for Ordinary Shares at a price of Stg4.52p. In addition, Macquarie may also be entitled to up to 25 million additional warrants based on drawdown of the facility or at certain fixed dates up to 31 December 2011. Warrants issued under the facility will be priced based on the weighted average share price of Petroceltic for the previous 20 trading days.
Dragon Oil (LON:DGO) plc (DGO, 475.00p, ? .32%) announced that it has signed a farm-in agreement with a wholly owned subsidiary of Cooper Energy Limited through which Dragon Oil is to earn a 55% participating interest in and, in any development phase, assume operatorship of the Bargou Exploration Permit, offshore Tunisia. The Bargou Exploration Permit is located in the Gulf of Hammamet in the Mediterranean Sea. Dragon Oil is to earn a 55% participating interest in the Bargou Exploration Permit by paying 75% of the cost to drill the Hammamet West-3 well in the Hammamet West Oil Field (the Field), according to an agreed well plan scope, up to a cost cap of US$26.6 million (on a 100% basis). If the well cost exceeds US$26.6 million, costs in excess of this amount will be…
