Petroceltic to drill second well in Kurdistan

Oil and gas exploration firm Petroceltic has outlined a capital expenditure budget of $130 million (€95.4 million) for 2014, the majority of which will be spread across projects in Algeria, Egypt, Kurdistan and Romania.

The Dublin-listed company said its exploration programme for this year comprises four wells including a second well in Kurdistan and further drilling in Romania.

Drilling is currently underway on the Shakrok exploration well, Petroceltic’s first in Kurdistan, and is expected to reach target depth in February.

“The Shakrok exploration well is drilling ahead approximately one month behind schedule principally due to weather related delays,” Petroceltic said in its 2014 outlook this morning.

The company said it was preparing to drill a second exploration well on the Shireen prospect in the Dinarta Block in Kurdistan.

“At present the well site is nearing completion, with rig mobilisation from Erbil currently in progress. The well is expected to spud in February, with an anticipated duration of 150 days.”

The company has applied for a permit to drill the South Dikirnis exploration well in Egypt this year.

“Egypt is a core area for Petroceltic and in 2013 over $60 million was invested in a range of facilities and development activities,” chief executive Brian O’Cathain said.

He said the Egypt development budget for 2014 amounts to $32 million and the firm investment programme includes facilities safety upgrade works on West Dikirnis and West Khilala and further development drilling at East Abu Khadra.

The company ended last year with $246 million of net debt.

“2013 was a year of solid progress, with highlights including the successful farm-out of the Ain Tsila Field in Algeria and the completion of a US$500 million debt facility, with availability for projects in Algeria, Egypt and Bulgaria,” Mr O’Cathain said.