Petroceltic Updates Operation, Shares Fall

By John Lee.

Petroceltic International has issued an update on its operations including the following statement on its business in the Kurdistan Region of Iraq. The shares closed down 5.6 percent on Friday:

The Shakrok-1 well on the Shakrok licence (Petroceltic 16%, Hess (Operator) 64% and the Kurdistan Regional Government 20%) reached its total depth of 3,538 meters on 30 March 2014. As previously announced, the joint venture partnership agreed to carry out Drill Stem Tests (DSTs) over four zones of interest in the Jurassic interval. The final two DSTs in this program have now been completed in the Adaiyah and Mus formations but did not flow hydrocarbons to surface.

In respect of the Dinarta licence (Petroceltic 16%, Hess (Operator) 64% and the Kurdistan Regional Government 20%), drilling preparations are at an advanced stage, with the Parker Rig 247 almost rigged-up at the Shireen-1 well location. Drilling is scheduled to commence in early June and the well is expected to take around 150 days to reach its planned total depth. The well is targeting oil in both the Jurassic and Triassic formations, with gross mean unrisked prospective resources of 706 MMbbls*.

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

"The outcome of these exploration wells is disappointing but does provide a significant amount of information that will greatly help decision making around future activity on these licences. We now look forward to drilling the Shireen-1 well on the Dinarta concession as the next well in our 2014 drilling programme."

(Source: Petroceltic)

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