Exploration firm Petroceltic has said a development plan for the Ain Tsila Field in southern Algeria, in which it has a 56.62 per cent stake, has been approved by the state regulatory body.
This follows the declaration of commerciality which was made on August 8th, on completion of an agreement with Sonatrach to market all of the produced gas from the Ain Tsila field.
The Dublin-based oil and gas firm holds a 56.625 per cent working interest in this field, with Enel holding 18.375 per cent and Sonatrach 25 per cent.
The project can now move forward into the 30 year development phase of the licence.
The approval is an important and significant step in the development of the field, according to Davy Stockbrokers.
"The news is important because it puts in place the final requirement to convert the field's contingent resource to commercial reserves. Having already agreed a gas sales contract, the approval of the development plan means that both requirements for commercial gas reserves have been met and they can be booked."
The stockbroking firm said the process of farming down an additional 18.375 per cent of the field was also underway and should provide another layer of industry validation.
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