Petroceltic up interest in Italian permit

Thu, Dec 17, 2009, 00:00

Exploration company Petroceltic said today it has signed a farm-in agreement with Vega Oil to increase its interest in the offshore Italian permit B.R268.RG from 40 per cent to 70 per cent.

Petroceltic said under the deal it is to assume operatorship of the permit, which includes the Elsa discovery, and will pay 100 per centof the drilling and completion costs for the proposed Elsa-2 well.

"The transfer of operatorship and the opportunity to increase Petroceltic's interest in B.R268.RG to 70 per cent demonstrates our commitment to Italy and to the Central Adriatic as a core areafor the company," said Petroceltic's chief executive Brian O'Cathain.

"We now believe Petroceltic is well placed to attract a new partner in early 2010 to exploit the Elsa discovery and the additional potential in this exciting new play fairway, in which Petroceltic holds 10 exploration licences at 100 per cent working interest," he added.