Petroceltic's wholly owned subsidiary, Petroceltic Italia Srl, has been awarded the exploration permit "B.R272.EL" in the Central Adriatic offshore Italy (formerly application block d.507).
The award of the B.R272.EL permit is a significant step forward in the development of the Company's Central Adriatic portfolio. The block covers 474 km2 and lies some 15km from the Elsa discovery and the producing Rospo Mare Field.
It contains the high-potential "Turchese" prospect located along the North Eastern extension of the Elsa trend.
The work programme for the initial six year phase of the exploration permit includes a 3D seismic acquisition program, which the Company is aiming to extend over the adjacent B.R270.EL permit, to high-grade prospects for possible future exploration drilling.
Seismic acquisition will involve industry "best practice" techniques to limit impact to marine mammal populations, including the use of qualified, independent marine mammal observers, exclusion zones and "soft startup" procedures.
Following local legal appeals, the Lazio Administrative Court has annulled the environmental clearance for the offshore Adriatic permit B.R271.EL on procedural grounds. In light of this decision, the Company is currently reviewing options on how to proceed.
The Central Adriatic permits have been awarded 100% to Petroceltic; however, as part of a farm-in agreement signed with Orca Exploration Group Limited ("Orca") in June 2010, Orca will have an option to earn a 15% interest in these permits following the drilling of the Elsa 2 well, subject to the usual regulatory approvals.
Brian O'Cathain, Petroceltic's Chief Executive, commented: "Permit B.R.272.EL brings significant additional potential to our Adriatic portfolio directly adjoining and on trend with the Elsa oil discovery. We look forward to working with the relevant Ministries to enable the commencement of seismic operations in this highly prospective region.
"Petroceltic is fully committed to operating in an environmentally sensitive manner in all its operations and will continue to work with all partners and stakeholders to support the National Energy Strategy's objective of doubling Italian oil and gas production by 2020."
Western Po Valley - Carpignano Sesia-1 well update
The Company has been advised that Eni Spa ("Eni"), as operator of the Carisio permit (Eni 47.5% Operator, Petroceltic 47.5%, Condotte 5%) in the Western Po Valley, has lodged an application with the Piedmont Region requesting a further extension of the permitting process until 30 June 2013. This extension will allow Eni to present a revised well location which takes into consideration local concerns. Petroceltic is supporting Eni's ongoing engagement with local and national stakeholders to ensure a successful outcome to this permitting process that will facilitate the drilling of this exciting oil prospect.
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