Petroceltic has posted a loss of $5 million for the first six months of the year.
This compares to a loss of just over $2 million in the same period last year.
In its interim results for the six months to 30th June 2010, the exploration company said that its drilling of the Sidi-Toui 4 well in Algeria commenced drilling in August 2010 and is currently drilling ahead.
Petroceltic confirmed that its three-well Ain Tsila appraisal drilling programme, which had been agreed with an optional fourth well, is scheduled to begin next month.
The company reiterated that the first well in Tunisia, Oryx-1, found no significant hydrocarbons. The well was drilled on budget to target depth of 1140m in July 2010 it added.
The company had cash of $ 108 million at period end.
Chief Executive Brian O'Cathain said that "solid progress" had been made in the period.
"We have put in place the capital and resources to exploit our world-class discovery in Algeria, and have made good progress in Italy and Tunisia, despite challenging circumstances. We are focused on the exploitation of our valuable Algerian discovery first and foremost and we remain confident that the appraisal programme for the Ain Tsila gas condensate field, due to start in October 2010, will further de-risk and demonstrate the value of this important asset."
He added that the company is exploring opportunities to expand the company's portfolio further.