Delegates at Petroceltic's AGM heard today that the recently completed evaluation on the Sidi Toui oil prospect in Tunisia was very encouraging.
The company's executive chairman, Brian Cusack, said Petroceltic hopes to drill a well on the prospect by August.
'We are satisfied that there is a significant amount of oil in place and are drilling to establish the extend and the recoverability of this resource,' he added
He also told shareholders that the company had recently identified a second major structure, Oryx' within its Ksar Hadada site in Tunisia. Oryx is close to Sidi Toui and has similar geological characteristics and risk profile. It may also be drilled by the end of the year.
Mr Cusack also said that Petroceltic is very encouraged with the outcome of the reprocessing and interpretation of the seismic data over its licence area in the Celtic Sea.
'The results indicate that the main structure 'Old Head of Kinsale' may be a mirror image of the nearly Kinsale Gas Field, operated by Marathon Petroleum,' he said.
'The Old Head of Kinsale structure has the potential to contain gas reserves in excess of 40% of the Kinsale Gas Field. It confirms our view that this prospect could be a company maker,' he added.
Petroceltic is examining options to fast-track the development of this prospect and is discussing plans and opportunities with its partner.
The company is at an advanced stage of negotiations on the purchase of a major interest in a substantial offshore oil appraisal project off the EU Mediterranean area. It is also in discussions with a number of international companies on potential joint ventures in Tunisia and is looking at opportunities in Algeria and Libya.
