Shares in Irish exploration firm Petroceltic rose sharply in early morning trading after it announced it has made a new gas discovery in Algeria.
The group said that well AT-1, on the Isarene permit in Algeria, has been successfully tested at the Ordovician (Unit IV) zone at a depth of 1915m.
Testing and sampling operations at the well have now been completed, the company said.
Shares in Petroceltic were up 19 per cent or 4c to €0.24 by 10.30am.
The well was drilled by Petroceltic, which has a 75 per cent stake and is the AT-1 operator in association with the Algerian Oil & Gas Company Sonatrach.
This is the third gas discovery tested by Petroceltic on the Isarene permit. In 2006, the Company tested gas from the shallower Devonian and Carboniferous objectives in wells HTT-2 and ISAS-1.
"We are delighted with the results of the AT-1 well test. This test exceeds our pre-drilling expectations, and is the most prolific single zone well test on the Isarene permit to date. The potential hydrocarbon resources associated with the Ordovician Ain Tsila ridge structure are an order of magnitude larger than our earlier discoveries on this permit," said Brian O'Cathain, chief executive of Petroceltic.
"These well results confirm the significant commercial potential of the Isarene permit to Petroceltic and our partner Sonatrach," he added.
