Petroceltic International abandons Mesaha-1 well in Egypt

Oil and gas company Petroceltic International has plugged and abandoned its Mesaha-1 frontier exploration well in southern Egypt after failing to encounter hydrocarbons.

Oil and gas company Petroceltic International has plugged and abandoned its Mesaha-1 frontier exploration well in southern Egypt after failing to encounter hydrocarbons.

The well was drilled to a total depth of 6,985 feet before determining there were no hydrocarbon indicators.

Drilling came to a gross cost of $10.3m for the concession for which Petroceltic owns a 40% working interest.

The data derived on the Mesaha basin stratigraphy will be incorporated in a review of the regional geology before optimising any future work plans for the block.

"While we are naturally disappointed not to have encountered any evidence of hydrocarbons in the Mesaha wildcat exploration well, it has provided valuable new information on this frontier exploration area in southern Egypt," Petroceltic's Chief Executive, Brian O'Cathain, said.

Nevertheless a number of other projects are progressing well for the company. The South Damas-2 development well is expected to begin production in late February after penetrating 96 feet of high quality gas-bearing sands.

The East Dikirnis-1 development well was brought into production last month after successful tie back to West Dikirnis facilities using a 14km, 6 inch diameter flow line. The well is currently being produced at a restricted rate of 150 barrels of oil per day in order to gather reservoir performance data before optimising the oil production rate.

The West Dikirnis LPG plant expansion is on schedule for completion mid-year.

"We are very happy with the progress we are making in our development projects in Egypt whilst the South Damas - 2 drilling results are particularly pleasing," O'Cathain said.

"Meanwhile, we look forward to commencing our high potential exploration drilling programmes in the Black Sea and Kurdistan Region of Iraq later this year."

RD

Recommended

How to profit from pampered pets beyond the pandemic
Share tips

How to profit from pampered pets beyond the pandemic

Covid-19 has greatly boosted ownership. But the market had been expanding for years, and demographic, cultural and medical trends all point to long-te…
30 Jul 2021
Share tips of the week – 30 July
Share tips

Share tips of the week – 30 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Jul 2021
Robinhood is going public – should you invest?
US stockmarkets

Robinhood is going public – should you invest?

Online stockbroking app Robinhood is going public on the US stock exchange. Saloni Sardana looks at whether it's worth a punt.
29 Jul 2021
Three sustainable stocks that are doing well by doing good
Share tips

Three sustainable stocks that are doing well by doing good

Professional investor Peter Michaelis of the Liontrust Sustainable Investment Team picks three stocks to buy that are helping to create a cleaner, saf…
26 Jul 2021

Most Popular

Why the UK's 2.5% inflation is a big deal
Inflation

Why the UK's 2.5% inflation is a big deal

After years of inflation being a financial-assets problem, it is now an “ordinary things” problem too, says Merryn Somerset Webb. But central banks st…
16 Jul 2021
The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism
Economy

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism

Russell Napier talks to Merryn about financial repression – or "stealing money from old people slowly" – plus how Asian capitalism is taking over in t…
16 Jul 2021
Cryptocurrency roundup: Twitter founder’s “DeFi” platform
Bitcoin & crypto

Cryptocurrency roundup: Twitter founder’s “DeFi” platform

In crypto this week: regulators are getting worried; Jack Dorsey’s bitcoin DeFi platform; and dogecoin’s co-founder lambasts cryptocurrencies.  Salon…
16 Jul 2021