Petroceltic Update and Guidance

By John Lee.

Petroceltic International has provided an operational update today together with guidance for its 2014 production outlook and exploration and development work programmes.

Highlights

  • 2013 production in-line with guidance at 25.2 Mboepd; 2014 forecast production range of 20.0 to 22.0 Mboepd
  • Shakrok well in Kurdistan Region of Iraq drilling ahead at 1818 m in Jurassic; testing programme anticipated
  • High impact exploration drilling campaigns continuing in Romania and Kurdistan
  • Three new high potential exploration licences ratified in Egypt, increasing core Egyptian exploration acreage position by over 300%
  • Significant progress on Ain Tsila project in Algeria; Front End Engineering and Design award and signature of detailed Gas Sales contract anticipated during Q1 2014
  • Completion of new subsea well tie-back in Bulgaria and facilities expansion projects in Egypt
  • Significant cash receipts from EGPC in December 2013; EGPC receivable has decreased by 25% year on year
  • Year-end net debt of US$246 million (2012 – $213 million)

Brian O’Cathain (pictured), Chief Executive of Petroceltic commented:

2013 was a year of solid progress, with highlights including the successful farm-out of the Ain Tsila Field in Algeria and the completion of a US$500 million debt facility, with availability for projects in Algeria, Egypt and Bulgaria.

“We have successfully integrated the Melrose business into Petroceltic, and have continued to build good relations with Governments in all of our areas of focus. We are looking forward to significant progress on the Algerian Ain Tsila development in 2014, and to potentially exciting exploration results in Romania and in the Kurdistan Region of Iraq.

“In particular, the planned well test programme for the Shakrok-1 well in Kurdistan should give some interesting results in the first quarter of 2014. As always, we look forward to updating shareholders on progress throughout the year.

Kurdistan Region of Iraq

The Shakrok exploration well is drilling ahead approximately one month behind schedule principally due to weather related delays. Based on current estimates of timing, we anticipate reaching total depth for the well in late February, at which point a testing program will commence, including testing of the Jurassic formation. Further updates will be provided in due course.

A second  exploration well will also be drilled on the Shireen prospect in the Dinarta Block. At present the wellsite is nearing completion, with rig mobilisation from Erbil currently in progress. The well is expected to spud in February, with an anticipated duration of 150 days.

(Source: Petroceltic)

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