Petroceltic Spuds Shakrok-1

By John Lee.

Petroceltic International has announced that it has spudded two wells: Shakrok-1, the first well in its drilling campaign in the Kurdistan Region of Iraq and Cobalcescu South, part of its planned multi-well drilling campaign, offshore Romania.

Kurdistan Region of Iraq

In July 2011 Petroceltic announced that Petroceltic Kurdistan Limited ("Petroceltic Kurdistan") had entered as a joint venture partner into Production Sharing Contracts ("PSCs") with the Kurdistan Regional Government of Iraq ("KRG") in respect of the Shakrok and Dinarta exploration blocks ("Dinarta" and "Shakrok") in the central northern area of Kurdistan.

The blocks are held in partnership with Hess Middle East New Ventures Ltd. ("Hess") and the KRG which have a 20% carried interest in each PSC. Petroceltic Kurdistan holds a 16% participating interest (20% paying interest) with Hess holding the remaining 64% participating interest (80% paying interest) in the PSCs.

Since July 2011, a substantial technical work program has been carried out on these blocks, including multiple fieldwork and rock sampling campaigns, structural modelling and ongoing 2D seismic acquisition, processing and interpretation programs.

In addition, preparations for a drilling campaign have been progressing, in parallel with this sub-surface work, with the selection of drilling locations, well design work, the execution of permitting procedures and the contracting and mobilization of two rigs into the Kurdistan Region of Iraq.