Petroceltic International said today it had raised $26 million from partners to fund the development of its Italian oil fields.
The company has signed a farm-out agreement over its offshore Italy permit, and agreed an investment deal with Gemini Oil and Gas Company.
Under the farm-out agreement, Orca Exploration will get a 15 per cent participating interest in the permit, and will pay 30 per cent of the drilling and completion costs for the proposed Elsa-2 well up to $11.5 million. It will also pay Petroceltic 15 per cent of the well's back costs up to $520,000.
Gemini Oil and Gas will provide $14 million towards the funding for the well in three tranches, with the final tranche of $4 million available on testing of the well. As part of the deal, Gemini will be entitled to receive revenues derived from the oil and gas production from the Elsa field once it is brought into development.
Petroceltic will retain a 55 per cent interest in the permit once the deal is completed.