Petroceltic's losses rise to $2.1m despite huge gas find

DUBLIN-based exploration group Petroceltic International yesterday reported a first-half loss of $2.1m (€1.4m) but reaffirmed the potential of its recent gas find in Algeria.

• The highlight in the first half of the year was the large An Tsila ridge gas structure in the Isarene permit in southern Algeria. The first well flowed more than 11 million cubic feet of gas in an area where around two million is considered commercial. A follow-up well on the ridge is being drilled 12.5km to the south of the first well.
• When testing operations on this well are completed the testing equipment will be moved to the INE-2 well.
• In a note, Davy analyst Job Langbroek said progress was also made in Tunisia where it farmed out a part of its Ksar Hadada licence. Drilling here will start next year with $14.5m of Petrceltic’s costs being borne by the group that farmed into the licence. In Italy, focus has been on the drilling of the Elsa field appraisal. The spud date now looks like the second half of 2010 and the operator, Vega Oil, has reported a best estimate of recoverable resources of 104 million barrels for the target. Petroceltic holds a 40pc stake in this licence.
• “Having raised funds at the start of this, Petroceltic is very well positioned to pursue its current suite of activities,” Davy said. The net loss was $2.12m, or 20 cents a share, compared with a loss of $1.94m, or 26 cents a share, a year earlier, Petroceltic said. The company had $81m in cash at the end of June.