Proactiveinvestors recommends
Stocktube video
26/01/2012

Petroceltic CEO Brian O’Cathain says he’s excited about the Kurdistan prospects

View full size
Additional Information
Market: AIM
Sector: Energy
EPIC: PCI
Latest Price: 6.31p  (-2.92% Descending)
52-week High: 12.00p
52-week Low: 3.80p
Market Cap: 149.52M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Petroceltic International
www.petroceltic.ie

Petroceltic is an upstream oil and gas exploration and production company with headquarters in Dublin, Ireland and with interests in Algeria, Kurdistan Region of Iraq, Italy and Ireland.

Full Petroceltic International profile here
Is PCI a Buy, Sell or Hold?Get your FREE analysis of PCI
Pdf

Petroceltic set for US$103 mln payday as ENEL farm-out is ratified in Algeria

19th Dec 2011, 7:32 am by Jamie Ashcroft Petroceltic is the operator of the Isarene permit with a 56.625 per cent stake

 

Petroceltic International (LON:PCI) today confirmed that it is set for a US$103 million payday as the Algerian authorities ratified its farm-out deal with ENEL.

The deal was struck back in April. 

Europe’s second largest utility company is paying US$36.75 million for an 18.375 per cent stake in the Isarene permit, which hosts the Ain Tsila gas discovery.

It has also agreed to pay a proportion of Petroceltic’s back costs on the licence as well as a further contingent cash payment, which could rise to a maximum of US$75 million.

Petroceltic says the amount to be paid currently exceeds US$103 million.

"We are delighted to announce that the final approval in Algeria of the Enel transaction has been granted which will allow for the deal's swift completion in the coming days,” said chief executive Brian O'Cathain.

“We look forward to formally welcoming Enel as an important new partner to the Isarene licence. 

“This transaction, allied to the excellent results from our appraisal campaign, has confirmed the quality and value of our Algerian asset and provides a firm foundation for the ongoing growth and diversification of our business" 

Petroceltic is the operator of the Isarene permit with a 56.625 per cent stake. The other partners Sonatrach has a 25 per cent stake and on closing ENEL will hold 18.375 per cent.

Last week Petroceltic shares revealed excellent flow test results from the AT-9 well at Ain Tsila.

The well produced gas at a combined rate of 52.8 million cubic feet per day (mmscf/d) during the test, with 43.9 mmcf/d coming from the Upper Zone and 8.9 mmscf/d from the Lower Zone. The well also produced over 1,200 barrels of condensate a day.

This is the highest pre-fracture stimulation flow ratesachieved on the Ain Tsila field to date. O’Cathain believes the well could produce at a rate of 60 million cubic feet a day on a sustained basis once it is has been fracture stimulated and it is in full production. 

The result marked the end of the 2011 appraisal programme.

According to analysts the AT-9 well tests should remove any lingering uncertainty regarding the commerciality of the Ain Tsila project. 

 

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.