First Calgary Petroleums Ltd confirmed yesterday it has discovered a new oil field in the Tagi zone of its prospective Block 405b in Algeria. The company, trading in whose stock was halted pending the announcement, said the discovery was made during a five-day flow test on the LES-3 well that revealed a normalised deliverability rate of 8,667 barrels of oil per day and 6.8 million cubic feet of gas per day.
"The Tagi oil field discovered by LES-3 creates additional appraisal and potential development opportunities," president and CEO Richard Anderson said in a release. "Drilling activity on the block has been accelerated with three rigs now operating."
The company also said its MLE-6 well on the licence tested at normalised totals of 8,496 barrels of oil equivalent per day and testing has begun at the LEW-2 well.
First Calgary's stock price collapsed last spring from highs of nearly $23 as the company tried in vain to find a partner or buyer who would help develop or take over its prized Algerian oil and gas assets. Last June, the company ended joint venture talks with Spanish energy company Repsol Exploration and told investors it was going carry on with its exploration program and look to develop energy projects on its own.
