Oil and gas group Petroceltic International (LON:PCI) today said it was expecting to book its first commercial reserves in the near future as its ambitious drilling programmes in Algeria, Italy and Tunisia head towards appraisal and development.

Reporting its full year results for the year to December 31, 2009, Petroceltic said it had spent last year delivering the Algerian drilling programme and high-grading its Italian and Tunisian opportunities. Work on these projects is set to continue into 2010-2011.

In Algeria, the company completed a five well drilling campaign and made a major new gas condensate discovery on the Ain Tsila Ridge, which tested at commercial gas flow rates up to 34 million standard cubic feet of gas per day (mmscfd). Further appraisal drilling in Algeria is scheduled for this year, along with more drilling in the Italian Adriatic Sea to appraise the Elsa oil discovery. Petroceltic is also being fully carried for exploration drilling on the Ksar Hadada permit in Tunisia before mid 2010.

On the financials, the company saw its operating losses rise to US$6.1 million from US$3.7 million in 2008, mainly because of higher administrative costs arising from increased exploration and appraisal activity.

Andrew Bostock, Petroceltic’s chairman, said: “The company is now well positioned to add further value across the portfolio, with a strong balance sheet and an active and funded drilling programme planned for 2010 which will encompass all of the countries in which we operate; Algeria, Italy and Tunisia.”

The company’s shares were trading down nearly 4% at 12.5p.

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