Algeria explorer First Calgary has posted a $2.4 million loss after spending some $50 million in the first three months of 2007, as it turns the Algerian desert into a sea of appraisal wells, just as the TAGI “pools” look commercial.

With $30 million in working capital still on hand and no credit or debt agreements in place, First Calgary will still spend $150 million in 2007. Meanwhile, “commerciality reports” must be submitted to the Algerian authorites regarding the Central Area Field Complex.

“First Calgary has been approached by a number of parties seeking to fund the block development and has appointed Citigroup as sole advisor to the Company on project debt for the ($1 million to $1.3 million Menzel Ledjmet East) development," a statement said.

A production-sharing agreement is in place with Sonatrach on Ledjmet Block 405b, site of the giant MLE field.