Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Petroceltic International completes Algeria farm-out

Petroceltic receives an immediate US$20mln cash boost as a result, and crucially the deal lightens the load in terms of development spend as Ain Tsila advances towards production.
Petroceltic International completes Algeria farm-out

Petroceltic International (LON:PCI) has confirmed the US$180mln deal with Algeria’s Sonatrach to farm out 18.375% of the Ain Tsila gas project is now complete.

It receives an immediate US$20mln cash boost as a result, and crucially it lightens the load in terms of development spend as Ain Tsila advances towards production.

The farm-out deal was struck in October, and now it is complete Petroceltic will finally begin to reap the benefits.

Petroceltic retains 38.25% of the Isarene production sharing contract (PSC) that hosts the world class gas field, slated to start up in 2018, and under the terms of the farm-out Sonatrach will now cover US$140mln of the group’s development costs.

A further US$20mln cash payment is contingent upon certain project milestones.

“We are delighted to announce the completion of the Sonatrach farm-out,” said chief executive Brian O’Cathain.

“Petroceltic has had a positive and mutually beneficial relationship with Sonatrach throughout the exploration, appraisal and now development phases of the Isarene PSC.

“The formal ratification of this agreement is a critical step in the overall funding plan for this development project.

“As development operations ramp-up, we look forward to continuing to work with Sonatrach and Enel to deliver the Ain Tsila Project and to maximise the value of this important national resource for Algeria."

View full PCI profile View Profile

Petroceltic International PLC Timeline

Related Articles

oil and gas operations
June 08 2018
Sound Energy is advancing with multiple work-streams which means a number of value catalysts are coming down the line for investors.
oil and gas operations
September 14 2018
In the longer term exploration drilling will tell, nonetheless, a near 3bn barrel 'pre-drill' resource is certainly attractive for speculative investors
oil and gas operations
April 26 2018
The Verbier discovery was a breakthrough in 2017, and the 2018 progammes aims to follow up that success.

No investment advice

The Company is a publisher. 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.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use