OilVoice - Petroceltic Secures Two Year Appraisal Extension for Four Isarene Discoveries

Petroceltic Secures Two Year Appraisal Extension for Four Isarene Discoveries

Tuesday, April 06, 2010

Petroceltic International plc, the upstream oil and gas exploration and production company focused on North Africa and the Mediterranean, in association with its partner Sonatrach, the Algerian national Oil & Gas Company, announces the signature of an Addendum to their Production Sharing Contract which provides for a two year extension period to carry out appraisal work on the four discovery areas on the Isarene Block, namely Ain Tsila, Isarene North East, Isarene North West and Hassi Tabtab (the "Addendum"). The two year appraisal period commences on 26th April 2010.

The Addendum defines the arial limits to the the four discovered fields on the Isarene permit. Petroceltic and Sonatrach shall retain these areas for appraisal work, and relinquish title to the other areas of the permit post 26th April 2010.

The total area of the retained acreage is 4032 sq. km, or 54% of the area of the Isarene permit held during the second exploration period, i.e. until 26th April 2010.

At the conclusion of the two year appraisal period Petroceltic and Sonatrach will submit to the Competent Authorities for approval the Commerciality Declaration and Development Plans for the discovered fields on the permit.

Brian O'Cathain, Chief Executive of Petroceltic, commented:
"We are pleased to have agreed the two year addendum to the production sharing contract with our partner Sonatrach. We look forward to recommencing drilling and appraisal work on the Ain Tsila field and other discoveries later this year"