Petroceltic Abandons Shakrok-1, Shares Slump

By John Lee.

Shares in Irish independent oil and gas exploration company Petroceltic International closed down 9.6 percent on Monday, following the company's update on its operations in the Kurdistan Region of Iraq.

On the Shakrok licence (Petroceltic 16%, Hess (Operator) 64% and Kurdistan Regional Government 20%), the Shakrok-1 well reached its total depth of 3,538m on 30th March 2014, in the Triassic Geli Khana formation. Wireline logs and fluid sampling via Modular Depth Testing (MDT) tool have established the presence of a 27m gas-condensate column in the Triassic formation. The co-venturers have decided not to test this Triassic zone, and the interval will now be plugged and abandoned.

The forward plan for the well is to carry out a comprehensive testing programme over a number of prospective oil zones in the Jurassic - the primary objective of the well. This program is expected to continue until mid-May.

On the Dinarta licence (Petroceltic 16%, Hess (Operator) 64% and Kurdistan Regional Government 20%), preparations for drilling continue. The Parker rig 247 is currently being mobilised to the Shireen-1 location, and the well is expected to commence drilling in early May. The Shireen-1 well is forecast to take circa 150 days of drilling to reach its forecast total depth. The well is targeting oil in both the Jurassic and Triassic formations, with mean unrisked Gross Prospective Oil Resources of 706 MMbbls*.

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

"This is our first exploration well in the Kurdistan Region of Iraq. While the secondary Triassic objective has found limited hydrocarbons, we believe that the outcome of the testing program on the primary Jurassic objective is independent of the Triassic result.

"We will continue to update shareholders on the outcome of the Shakrok well testing and Dinarta operations as soon as material results are available."

(Source: Petroceltic)

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