Petroceltic to drill gas prospects in Italy

Petroceltic plans to drill gas prospects in Italy's onshore Po Valley gas basin in 2008 after buying exploration permits from BG Gas International BV Italian Branch (BG Italia), a subsidiary of BG Group PLC.

Oct 16th, 2007

Uchenna Izundu
International Editor

LONDON, Oct. 16 -- Petroceltic International PLC plans to drill gas prospects in Italy's onshore Po Valley gas basin in 2008 after buying exploration permits from BG Gas International BV Italian Branch (BG Italia), a subsidiary of BG Group PLC.

Petroceltic will acquire 50-95% interests in the assets and will operate four of them. It also will buy interests in two exclusive permit applications from BG Italia—one in the Po Valley and one offshore in the Sicily Channel in southern Italy. The unrisked recoverable resources are estimated to hold more than 1 tcf of gas equivalent.

The additional acreage will more than double Petroceltic's position in Italy to more than 6,600 sq km. The company said the deal complements its "existing oil-dominated prospect inventory in the Central Adriatic area, with a gas-dominated prospect portfolio in the Po Valley basin."

It will gain over 750 sq km of 3D seismic data already processed for the new hydrocarbon plays and a legacy database with a number of other 3D seismic surveys. Completion of the transaction, subject to usual regulatory approvals, is anticipated before yearend.

Contact Uchenna Izundu at uchennai@pennwell.com.

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