Petroceltic sells Algerian stake

Mon, Dec 19, 2011, 00:00

Oil and gas explorer Petroceltic has sold an interest in an Algerian production-sharing contract to Italian energy provider Enel.

In a statement to the Irish Stock Exchange this morning, Petroceltic said that Algerian authorities had approved the sale of an 18.375 per cent interest in the Isarene licence. 

The clearance paves the way for completion of the deal, which was initially agreed in April and could be worth up to $180 million, within five days.

Petroceltic said Enel would, under the agreement, pay up to $36.75 million in back costs, fund 49 per cent of the cost of the first six appraisal wells in an enlarged Isarene campaign and pay a “contingent cash consideration” of up to $75 million which would be determined by the level of recoverable reserves.

Petroceltic chief executive Brian O'Cathain said the development “has confirmed the quality and value of our Algerian asset and provides a firm foundation for the ongoing growth and diversification of our business".