Petroceltic completes sale of Egyptian licences

Dublin-listed oil and gas explorer sales assets for a cash consideration of $9.5m

Petroceltic chief executive Brian O’Cathain

Petroceltic chief executive Brian O’Cathain

 

Troubled oil and gas explorer Petroceltic has completed the sale of its Egyptian exploration licences to its joint venture partner Edison International for a cash consideration of $9.5 million (€8.5m), after working capital adjustments of $5.8 million

The Dublin and London-listed company, which owes more than $200 million (€179 million), is focused on North Africa, the Mediterranean and Black Sea region.

The sale of the Egyptian assets comes after the group transferred its rights to a licence it part-owns in Greece to its consortium partners, Edison and Hellenic Petroleum, in late December.

“This sale continues our strategic initiative, announced in early 2015, to focus the company on the Ain Tsila development in Algeria, ” Petroceltic chief executive Brian O’Cathain said about the Egyptian deal.

Earlier this month, Petroceltic was given a further waiver on its repayments, which runs out on Friday.

Petroceltic effectively put itself up for sale in December after a breach of banking covenants on its debts of $217.8 million.

Worldview Capital, a 29 per cent shareholder, which has been in dispute with the company’s board for more than a year, has previously announced it is considering making a cash bid, although an offer has yet to materialise.