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.

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