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

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021