Petroceltic Logs Gas Pay at ISAS-1 in Algeria

Petroceltic International says log analysis indicated the presence of gas saturated sandstone at three separate levels in the ISAS-1 exploration well in the Isarene Permit in the Illizi Basin in Algeria (Ordovician, Devonian and Carboniferous) including a potential gross gas column in excess of 230m in Ordovician Unit IV and Unit III tight sandstones.

Initial, unstimulated, well testing of the three intervals is now complete with gas flowing on test on each of these three intervals. However, details of the test results and possible associated reserves await the approval of the Algerian authorities before they can be published.

The ISAS-1 well will now be suspended in order to facilitate further evaluation which may include well stimulation via hydraulic fracturing. In accordance with the Production Sharing Contract for Isarene, Petroceltic intends to immediately submit a discovery declaration for the Carboniferous interval to Sonatrach and the Algerian Ministry of Energy.

On completion of the ISAS-1 well suspension the rig will move to the HTTW-1 location where drilling is expected to commence in approximately three weeks.

Commenting on the well results John Craven CEO of Petroceltic said "I am encouraged by the results of ISAS-1, our first exploration well in Algeria. The presence of gas at three separate stratigraphic levels confirms our view of the multi zone prospectivity of the Isarene permit and the exploration potential of this area of the Illizi Basin."