Petroceltic withdraws from Romanian exploration activities

Dublin-based oil and gas exploration firm Petroceltic has withdrawn from its interests in Romania to focus its activities on its licences in Egypt and Italy.

The company, which is focused on the Middle East, North Africa and the Mediterranean region, said it transferred its 40 per cent interest in Block 27 Muridava and its 20 per cent interest in Block 28 Est Cobalcescu to its Romanian subsidiary Petroceltic Romania on Saturday.

It subsequently sold the subsidiary to GVC investments, a private limited company that has considerable oil and gas assets in the region. it is understood the price paid for the assets is not material and that the rationale for the transaction is that it frees the company from future development costs in Romania.

“This concludes our involvement in the Romanian Black Sea. This process of disengagement forms part of our strategy to focus our efforts on our production and development assets, and to exit from high risk exploration ventures. We have now withdrawn from Romania and Kurdistan, and are focusing our future exploration efforts on Egypt and Italy,” said chief executive Brian O’ Cathain.

Petroceltic, which is listed in Dublin and London has production, exploration and development assets in Egypt, Algeria, Italy and Bulgaria.

The firm announced its withdrawal from the Dinarta licence in Kurdistan in northern Iraq in March. It said at the time the decision to withdraw was made in light of the current low oil price environment, lack of conclusive well results to date and the limited time remaining in the current period of the production sharing contract for the licence.

SP Angel said Petroceltic’s decision to dispose of its Romanian portfolio was “a significant step forward for the company as it starts to narrow the focus of its operations to its core areas.”

Elsewhere, Davy said the exit was expected and that the stockbroker did not carry any value for the portfolio in its group valuation.