Any experts out there with a view to todays RNS on Algerian gas find ?
Looks good to me but sp is down
Thanks in advance nr

Peaceful demonstration in Algiers on Saturday.

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Petroceltic International plc in association with its partner Sonatrach, the Algerian National Oil & Gas Company, is pleased to announce well AT-4 on its Isarene Permit (Blocks 228 & 229a) in Algeria has successfully tested gas from two zones in the Ordovician at a maximum combined flow rate of 1.35 mmscf/d and 450 bwpd on a 48" choke.

Well AT-4, the first of the current appraisal campaign of the Ain Tsila gas discovery, was drilled to appraise the previously undrilled eastern margin of the Ain Tsila field and was located with the primary objective of maximising information about the gas-in-place rather than optimising flow rate on testing. The well encountered a gross gas column of 155 metres with no gas-water contact interpreted within two zones of the Ordovician reservoir. This gas-down-to is deeper than the gas-water contact currently interpreted in the field. Pressure data from logs and the test indicate the continuity of the Ain Tsila gas accumulation at this location and that AT-4 therefore represents a successful delineation well of the Ain Tsila field.

The AT-4 testing programme initially involved the perforation, fracture stimulation and then isolation of the lower zone with a sand plug. Following this, the upper zone was also perforated and fracture stimulated, the well cleaned out and the two zones flowed together.

The well flowed with a combined rate of 1.35 mmscf/d of gas (1593 cubic metres/hour) and 450 bwpd of water with a flowing wellhead pressure of 160 PSIG on a 48" choke. After isolation of the lower zone to reduce water production, the upper zone was flowed separately at 1 mmscf/d of gas (1180 cubic metres/hour) with an associated 250 bwpd. It is likely that the induced fractures in the well have extended below the current field gas-water contact into an underlying aquifer resulting in the volumes of produced water seen. This volume of water reduced the gas flow to rates significantly lower than anticipated from this well. Testing and sampling operations at AT-4 have been completed and the well has been suspended.

The next well in the appraisal drilling campaign, AT-5, is targeting one of several structural pop-up features in the field with the intention of carrying out multiple fracture stimulations in a horizontal well to improve productivity and ultimate recovery factor for the field. Following the successful drilling of the pilot hole, we are currently preparing to conduct logging operations prior to commencement of the horizontal section.

Brian O'Cathain, Chief Executive of Petroceltic commented:
"The first well in the current Ain Tsila appraisal campaign has successfully confirmed the extension of the field to the East and increased the proven area and calculated gas-initially-in-place. While the volumes of produced water reduced the gas flow rate, the data gathered from AT-4 will enable us to refine our remaining drilling and testing programme in the Ain Tsila discovery in 2011 and ensure we optimise our future plans for the field."

Still in...but gas just does not seem to be the flame of the day at all....another success and the sp drops....

wrong company, wrong location, wrong investment - sorry

Wished I sold out at 15p.....stuck in it ......convinced that it will come back as a very large gas accumulation seems to be there.

sorry to be a wet blanket again, but when was the last truly positrive rns? .... that algeria is too close for comfort to libya is another charmn

The location is not helping, that's for sure....but they do have one hell of a good appraisal campaign underway.....I'm not selling at a loss and will continue to have faith in this company...it's the troubles in north africa that is making the sp slip plus oil is preferred to gas.

sorry again, but it is truly bad logic to hold just because it would mean taking a loss .... for myself i should have been far more disciplined with AVN and taken a nasty knock instead of a bad whack, which i have belatedly now done

I have learnt to be patient.....and I will be because there is big, good progress here.....the sp will bounce back....

i hope you're right .... it's a stock that i keep on my watchlist and dabble in from time to time

They are drilling one well after another...at some time soon, the market will price the company up.

Mirabaud Oil Update
Mirabaud Securities Energy Research
2 March 2011


Petroceltic International
AT-4 flow rate underwhelms
This morning, Petroceltic International (PCI LN, Buy, PT 24p/shr) announced an update on the AT-4 appraisal well in the Isarene Permit in Algeria the first of four planned appraisal wells on the Ain Tsila field. The well was designed to delineate the eastern flank of the field and, as previously reported, encountered a thicker than expected gross gas column of 155 metres with no gas-water contact. PCI added some additional colour today, stating that the well intersected two distinct Ordovician zones, with a deeper gas-down-to level than that currently interpreted across the field. However, after fracture stimulating the two horizons, a disappointing commingled flow rate of 1.35 mmscf/d and 450 barrels of water per day (bwpd) was recorded. The lower zone was subsequently isolated using an isolation packer, and the upper zone tested at 1 mmscf/d of gas and 250 bwpd. This concluded testing operations on AT-4 and the well has been suspended. Elsewhere, PCI added that the next well on the field, AT-5, is preparing to conduct logging ahead of drilling the horizontal section.
The headline flow rate on AT-4 is disappointing and certainly sub-commercial. However, the good news is it almost certainly relates to the design of the fracture programme rather than the geology in the eastern side of the field. The explanation put forward by PCI is that the induced fractures extended below the gas-water contact into the underlying aquifer leading to water production, which in turn inhibited gas flow. In all likelihood, this happened because the company decided to fracture the secondary lower zone lying closer to the gas-water contact rather than focus on the upper zone as in previous wells. Once the connection with the aquifer had been established it compromised the testing of the upper zone as well. Had the company stuck to its original plan and only fractured the upper zone, it seems likely that these issues would not have occurred. Indeed, evidence from the well data suggests that the reservoir properties of the upper zone were sufficient to produce at 4-6 mmscf/d on a standalone basis. Consequently, while the flow test results are a setback, in our view, they have little impact on the wider appraisal project or AT-4s main objective of proving gas-in-place in the eastern flank.
PCI shares have been under pressure in recent days due to the ongoing unrest in North Africa and todays news is hardly likely to help sentiment. Nevertheless, the political situation in Algeria appears to be calmer following recent Government concessions, and we expect plenty of news flow from the drill bit over the coming months, accompanied by tangible progress on the farm-out front. We continue to view PCI as one of the few value plays in the sector, and believe recent weakness on political concerns is overdone. As such, we retain our BUY recommendation and 24p/shr target price.

Ticking over here for the moment. Hope to hear of Italy before ProactiveInvestor in Dublin on 29 March in Dublin.

Petroceltic International plc is pleased to announce that it has completed logging and drilling of well AT-5 (pilot hole) on the Isarene permit in Algeria. Drilling began at the AT-5 well on 9th January 2011, and the well reached its total depth of 2049m on 2nd March 2011, having experienced drilling delays due mainly to surface equipment failures on the contracted drilling rig.

Well AT-5 is being drilled to test a major "pop-up" feature in the north of the field and is located approximately 4 km east of the AT-1 well. The "pop-up" feature is one of many such structures typical of the northern part of the field and it is anticipated that these features are associated with high natural fracture density and thus potentially enhanced un-stimulated gas productivity. Mud losses while drilling, together with core, conventional logs and image logs from AT-5 all indicate the interval is potentially highly fractured with some of these being open natural fractures.

Logs at AT-5 showed the objective Ordovician reservoir to be fully gas bearing, and a gross gas column of 75.5 metres was logged, with no gas water contact seen in the well. The overall hydrocarbon pore volumes encountered at this location were significantly in excess of the pre-drilling prognosis. The well was cored with 29 metres of core being recovered from the objective reservoir section.

After completion of coring, drilling, logging and borehole image logging of the near vertical AT-5 pilot well, the well has now been side-tracked as originally planned (AT-5Z) and a horizontal section of up to 500 metres is currently being drilled to explore for high natural fracture density associated with a series of tectonic faults. The faults have been interpreted from 3D seismic data and the horizontal well is oriented to intersect fractures which are expected to be open.

Free event.

The directors of Petroceltic International (AIM: PCI), Ascent Resources (AIM: AST), Caza Oil & Gas (AIM, TSX: CAZA) and Providence Resources (AIM: PVR) will be presenting:Tuesday the 29th March 2011, The Shelbourne Hotel, 27 St Stephen's Green, Dublin, 2 Ireland

FREE registration - http://www.proactiveinvestors.co.uk/register/event_details/105

The presentations will start at 6:00pm and finish at approx 8:00pm. After the presentations are complete the directors will also be available to take questions during a free canapand wine reception. Details on the presenting companies can be found below.

This event is suitable for the following:
Sophisticated & private investors, private client brokers, fund managers, financial institutions, hedge funds, buy & sell side analysts and journalists.

The event is not suitable for people pursuing commercial opportunities.

If you have any problems registering or queries please email events@proactiveinvestors.com.

Good evening was had too.

all gas and gaiters?

Aye and SP not reacting to Brian's hope and glory presentation yet.

StockMarketWire.com
Petroceltic International plc reported a rise in pre-tax loss to $12.6m from $6.1m, mainly due to the write-off of exploration costs associated with its withdrawal from the Ksar Hadada permit in Tunisia.

Revenue for the year to December was $0.27m, up from $0.21m.

Exploration costs written off totalled $7.0m compared with the previous $1.3m.

The company ended the year with $82.2m in cash, previously $33.7m.

It raised $120.5m in April to fund the 2010 work programmes in Algeria and Italy and provide financial flexibility going into 2011.

In Italy, prior to the postponement of operations, the company raised over 70% of the funds needed to drill the Elsa-2 well through a 15% farm-out to Orca Exploration and a $14m investment agreement with Gemini Oil & Gas.

Chairman Robert Arnott said 2010 was a year of solid progress for Petroceltic despite challenging circumstances.

'The company has put in place the resources to exploit its world-class discovery in Algeria and the underlying strategy and investment case remains strong.

'The company is well positioned to add value within its existing business through an on-going exploration and appraisal programme, and is continuing to explore opportunities to expand its portfolio in areas that exploit the strengths of our team.'