Petroceltic awarded two exploration licences offshore Italy

Upstream oil and gas exploration and production company Petroceltic International has announced that its wholly-owned Italian subsidiary, Petroceltic Italia, has been awarded two exploration licences in the central Adriatic offshore Italy.

The licences are 144.5km2 and 327.1km2, respectively, and run for six years.

The permits are located adjacent to existing oil and gas fields which have demonstrated three working hydrocarbon plays in this region.

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The permits have been awarded 100% to Petroceltic, however, as part of a farm-in agreement signed with Orca Exploration Group in June 2010, Orca will have an option to earn a 15% interest in these permits subject to the usual regulatory approvals.

Interpretation of 2D geophysical data has already revealed a number of prospects and leads on the permits, at all three hydrocarbon play levels. Future plans involve obtaining additional new geophysical data in order to high-grade prospects for possible future exploration drilling.

Brian O'Cathain, Chief Executive of Petroceltic, said: "We are delighted with the award of these offshore exploration permits which is indicative of a desire to re-activate the offshore Italian exploration and production industry by the government of Italy, for the benefit of the national and regional communities and economies, in line with the recently announced review of the national energy strategy by Minister Passera."

The firm has also applied for three other adjacent exploration permits in this area, which are currently under consideration by the Ministry of Economic Development.

NR