Petroceltic Plans Nine Wells over 18 Months

Junior oil and gas firm Petroceltic International outlined plans to drill a minimum of nine wells during the next 18 months when it reported its annual results Monday.

Petroceltic said that its drilling campaign would take place across Bulgaria, Egypt, Kurdistan and Romania.

In Bulgaria, where Petroceltic operates three production licenses including the Galata gas field that it brought into production in 2004, the firm said that its latest exploration well – Kamchia – was spud this month and, if successful, could be rapidly developed through existing infrastructure.

The firm said it was continuing to invest in Egypt, in spite of the high degree of political uncertainty in the country, and that the recent award to it of the onshore South Idku and offshore North Thekah blocks was evidence of its commitment to the country.

In the Kurdistan region of Iraq, a joint venture in which Petroceltic is a part plans to begin drilling two high-impact prospects during the second half of 2013. The firm said that a number of prospects within the joint venture's Shakrok and Dinarta block are assessed to contain prospective resources in excess of 500 million barrels.

During 2012, Petroceltic acquired highly-quality 3D seismic data over the Muridava and Est Cobalcescu blocks in Romania as part of the country's 10th Licensing Round. The firm said it has identified the presence of a variety of potentially material exploration leads and prospects on these blocks, and it plans to drill two of these during 2013 as part of a wider Black Sea campaign. A further four wells are scheduled for 2014.

Meanwhile, Petroceltic has resumed planning for an appraisal well in Italy on the Elsa discovery offshore Abruzzo and was recently awarded the Central Adriatic permit B.R272.EL. Onshore, the firm has made steady progress on the permitting for its Carpignano Sesia well in the western Po Valley.

Petroceltic also said that it has booked reserves for its Ain Tsila assets of 304 million barrels of oil equivalent after a Declaration of Commerciality was made in December 2012.

The firm exceed its production target of 28,000 barrels of oil equivalent per day (boepd) during 2012, with the full-year pro-forma rate coming in at 28,400 boepd.

Petroceltic Chairman Robert Adair commented in a statement:

"Petroceltic has fundamentally transformed its business over the past year. The merger with Melrose in October 2012 has created a significant, regionally focussed, full cycle, independent oil and gas company. This combination has produced a company with stable finances and excellent growth prospects. Petroceltic has the technical expertise and ambition to develop further over the next 12 months while the recent announcement of our new $500 million financing facility represents a strong technical and financial endorsement of the quality of our producing assets and longer term growth ambitions of the group.

"All key objectives set out at the end of last year have been met or exceeded. The Declaration of Commerciality, announced in December 2012, is a significant milestone in the development of our Algerian asset, this has allowed us to book reserves for the Ain Tsila asset for the first time. Looking forward, we have an exciting programme of exploration and appraisal planned over the coming 18 months with a minimum of nine wells planned across our portfolio in North Africa, the Black Sea and the Kurdistan Region of Iraq."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Weak Jobs Data Batters Crude; Brent Sinks To Lowest in 8 Months

A disappointing reading on March U.S. payrolls sent crude oil futures tumbling, with Brent crude sinking to an eight-month low, on fresh concerns about weak oil demand in the world's biggest crude consumer.

Brent crude for May delivery fell $2.09, or 2%, to $104.25 a barrel, poised to settle at its lowest level since July 24.

Light, sweet crude for May delivery settled 56 cents, or 0.6%, lower at $92.70 a barrel on the New York Mercantile Exchange, its lowest level in two weeks.

The U.S. added just 88,000 jobs in March, according to the Labor Department Economists surveyed by Dow Jones Newswires had expected nonfarm payrolls to rise 200,000.

The unemployment rate, obtained from a separate survey, ticked 0.1 point lower to 7.6%.

The report was a particularly heavy blow for oil markets, analysts said, because the U.S. economy had been adding jobs at a quickening clip in recent months. Job growth is closely correlated with oil demand because fewer jobs means fewer motorists driving to work, buying goods or taking vacations.

"The employment rate is very critical to having a constructive outlook on energy demand," said John Kilduff, founding partner at Again Capital in New York. "It's been a bright spot, and now it's obviously diminishing."

Friday marked the third straight day of lower crude prices, with Nymex crude shedding 4.7% this week and the Brent contract posting a 5.2% loss. Analysts attribute the declines to a drumbeat of disappointing economic news this week, including a weak jobs report Wednesday from Automatic Data Processing Inc. and a disappointing read on weekly jobless claims Thursday.

Brent's heavier losses have raised expectations among investors that the two crude-oil benchmarks, which have traded far apart for more than two years, may be closing in on each other again. Brent's premium to WTI shrank on Friday to under $12 to its narrowest since late June.

"This week is really not about oil fundamentals; it's about global macro [news] and appetite for risk in commodities as a whole," said Brison Bickerton, managing director at Freepoint Commodities, a trading firm.

Brent's losses have been exacerbated by several independent factors, say analysts, including improving output in the North Sea--where the crude is produced--and cooling global tensions. Dow Jones Newswires data indicate that loadings of crude oil in the North Sea in May are set to rise 8.5% from April levels.

Meanwhile, Iran sat down Friday with global powers to discuss plans to end an international stand-off over its nuclear program, signaling that a violent confrontation remains unlikely even if diplomatic progress remained elusive.

A series of high-profile oil analysts have taken an increasingly bearish stance on oil prices in recent weeks. Last week, analysts at Citigroup said rising efficiency and increasing natural-gas demand could cause oil demand to peak by the end of this decade, leading oil prices to trade between $80 and $90 a barrel in the long term.

On Wednesday, oil analysts at Barclays cut their forecast for 2013 Brent crude to $112 a barrel from $125 a barrel, and their view for Nymex crude to $95 a barrel from $108 a barrel. The analysts cited a "a more placid geopolitical environment than previously expected."

Refined fuels also plumbed new lows Friday. Front-month May reformulated gasoline blendstock, or RBOB, settled lower by 3.51 cents, or 1.2%, at $2.8636 a gallon, its lowest finish since Feb. 27.

May heating oil finished lower by 5.36 cents, or 1.8%, at $2.9098 a gallon, a one-week low.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here