Dublin-based Petroceltic International has signed KCA Deutag to a land-rig contract for the oil company’s seven-well Algerian drilling and testing campaign in the Isarene permit.
A new T-212 rig en route from Germany will appraise gas and oil discoveries already made on the license by Petroceltic and previous operators.
The drill-bit programme is expected to take up to 10 months with funding from the $55 million investment in Petroceltic by Spanish energy company Iberdrola in June 2008.
Petroceltic holds a 75 percent stake in Isarene with Algerian state champion Sonatrach, holder of the remaining 25 per cent.
Petroceltic is about to receive the first $7.3 million dollar advance from Iberdrola with expectations of a drill start in April.