ELSA FIELD Information

There are important differences between the circumstances in relation to deep water oil exploration in the Gulf of Mexico and the planned drilling operations near Abruzzo on the Adriatic Coast. The Elsa Field contains low pressure oil which is not capable of flowing naturally. A pump is required to bring oil to the surface. In contrast the deep water fields in the Gulf of Mexico are high pressure, meaning oil will naturally flow to the surface if left unchecked.

Furthermore, these wells in the Gulf of Mexico are at a depth of over 1.5 km from the surface. This requires a floating rig which means that the Blow Out Preventor (BOP) is located on the seabed, so containment of any problem has to be done remotely and is therefore much harder. In contrast, the rig for the Elsa 2 well would stand on the seabed in just 33 m of water. With this configuration the BOP is on the rig with a simpler control system which is accessible for repair or maintenance at all times.

It is subject to a permit being granted by the Ministry of the Environment. The permit process requires a full assessment of potential impacts on the environment. A decision on this will be made in Q2 2010. This will allow Petroceltic to undertake exploration but not production.

An exploration well will be drilled in early autumn 2010, subject to permit approval from the Ministry of the Environment. This drilling phase will last approximately four months.

Yes there will be an oil rig (known as a drilling rig) on site for approximately four months. It will be located seven kilometers from the coast and will be visible as a small object on the horizon

It is seven kilometres from the shore – so it will be visible as a small object on the horizon.

We have carried out a full environmental impact assessment and any effects will be very small. We will be using the Eco-Drilling Approach to minimise the impact of operations on the natural environment. This includes ensuring that no waste from the drilling process (such as rock cuttings) will be released in the sea and that robust systems are in place to prevent the accidental release of any oil.

We have created this website to be transparent about our plans and to answer any questions that people have. We will also be meeting with interested parties to talk them through the project.

The risk of an oil spill is negligible as there are control systems in place to stop this happening. Furthermore, the oil well is low pressure – meaning oil will only come to the surface if pumped.

The rig is designed to withstand an earthquake with a magnitude of 5.5. If there was an earthquake all operations would be shut down according to well practiced emergency procedures.

Drilling does not cause earthquakes.

Petroceltic believes that there may be commercially viable oil at Elsa 2. This cannot be confirmed until the analysis from the exploration phase is complete.

We don't believe it will have any effect on tourism. The oil rig will be barely visible from the shore – so tourists may not even notice it. If we get the permit then activity will start in the autumn – outside the peak tourism period.

Elsa 2 is anticipated to have up to 100 million barrels of recoverable oil. The decision to go into production depends on the actual size of the reserves and the quality of the oil found.

If the exploration phase goes ahead it will provide a financial boost to the region. We estimate that approximately half of the $38m costs of drilling the Elsa 2 will be spent on service companies and local businesses in the Province of Abruzzo.

All of the specialist services on board the rig will be supplied from the region. In addition, transport companies, local hotels and restaurants will benefit.

Approximately 40-50 people working on the rig will be from companies in the local area.

If commercial quantities of oil are discovered and a decision made to develop and produce the field, production will mean long-term investment and jobs for the region for potentially as long as 20 years. Petroceltic will also pay tax to the Province of Abruzzo if production goes ahead. It is impossible to give a figure at this point.

A number of government permits will be required to undertake further appraisal or develop the field and produce oil. This would include permits from the Ministry of the Environment.

The rig will be demobilised and the well sealed with cement. Nothing will protrude from the seabed.

The rig will be positioned more than seven kilometres from the shore and it will be barely visible on the horizon.

The rig will not be heard from the shore.

The noise level of the rig will actually be lower than that of a large seagoing vessel. Therefore, the impact on marine fauna is considered very low.

We have a designated safety zone around the rig to prevent unauthorised boats entering this zone. This extends for a radius of 500 metres and is enforced by an order of the harbour office.

The rig is a mobile device that takes about one day to become operational after arriving on location.

Around 2000 bbls of oil will be pumped to storage tanks during the Elsa 2 exploration phase as part of the testing process. This will then be transported ashore for sale or disposal. There will be no pipes to the shore.

Small supply boats will visit the rig daily to bring materials and supplies and to take waste away.

The supply boats will sail to/from the Port of Ortona.

The Ministry of Environment is conducting a public consultation to review the views of a wide range of stakeholders. We will be holding face-to-face meetings with some interested parties to address their concerns.

We have no immediate plan to explore in other parts of this licence at the moment. Elsa 2 is our focus.

Petroceltic has a firm commitment to conduct all its operations safely and maintain high environmental standards. Petroceltic has not had any environmental or significant health and safety issues within its operations.

A number of government permits are required. The approval of the Ministry of the Environment is a key requirement.