Petroceltic taking steps to stem gas decline offshore Bulgaria

Petroceltic’s gas production in the Bulgarian sector of the Black Sea averaged around 18.6 MMcf/d (526,693 cm/d) last year.

Offshore staff

DUBLIN, Ireland – Petroceltic’s gas production in the Bulgarian sector of the Black Sea averaged around 18.6 MMcf/d (526,693 cm/d) last year.

Strong performance from theGalata field, however, was countered by increased water production and lower gas recovery from the Kaliakra field.

Output from the Kaliakra-1 well rate has declined to 2 MMcf/d (56,634 cm/d) at present, suggesting the well is only in partial pressure communication with the main field area. The company is therefore considering an additional well (Kaliakra-3) to ensure all reserves are accessed and to fully drain the field.

Petroceltic conducted a review of the remaining exploration potential of the greater Galata license, identifying limited further prospectivity. The company will focus on optimizing future production from Galata and satellite fields, completing the tie-in this year of the Kavarna East discovery, and on managing operating costs.

The Kavarna-1 well has experienced water breakthrough and will likely be shut-in when Kavarna East comes onstream.

Offshore Abruzzo, eastern Italy,Petroceltic’s Elsa oil discovery contains 95 MMbbl of 2C contingent. The company re-submitted an environmental impact assessment for drilling of the Elsa-2 appraisal well last summer following consultations with Italy’s government and with local institutions. It received approval this March.

The final step in the process should be the issuing of a formal ministerial decree confirming the approval, after which, Petroceltic will recommence detailed well planning with a view to drilling the well in late 2016.

It will also consider farm-outs or another partnering initiative to mitigate its costs. If the well is successful, Petroceltic may look to accelerate exploration of its other Italian prospects.

06/29/2015

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