Petroceltic International PLC : Algeria - Ratification of Enel Transaction
12/19/2011| 02:40am US/Eastern
Recommend:
Petroceltic International plc
Algeria - Ratification of Enel Farmout
Transaction
Petroceltic International plc ("Petroceltic"
or "the Company"), the upstream oil and gas
exploration and production company focused on North Africa,
the Middle East and the Mediterranean, is pleased to announce
the approval by the Council of Ministers in Algeria of its
sale of an 18.375% interest in the Isarene PSC to Enel Trade
SpA (Enel).
This is the final stage of the approval process
relating to the transaction between Petroceltic and Enel,
announced in April, and paves the way for completion of the
transaction within 5 days and the settlement of all amounts
outstanding within 30 days thereafter.
Under the terms of the agreement ENEL has:
o Agreed to pay up to US$ 36.75
million to Petroceltic, which equates to 24.5% of all back
costs incurred from signing of the PSC in 2005 until the end
of the exploration period in April 2010;
o Committed to fund 49% of the cost
of the first six appraisal wells in an enlarged Isarene
appraisal campaign and of a contingent additional well, of
which costs are capped, in aggregate, at US$ 145 million;
and
o Agreed to pay Petroceltic a
contingent cash consideration, up to a maximum of US $75
million, such amount determined by a number of factors based
the results of the appraisal programme, such as the overall
level of reserves and the production profile.
Amounts outstanding under this agreement or to be paid
under cash call arrangements relating to the 2011 appraisal
programme, currently exceed $103 million.
Upon completion, Petroceltic will operate the permit
with a 56.625 % interest, Sonatrach will maintain a 25%
interest, and Enel will hold an 18.375% interest.
Brian O'Cathain, Chief Executive of Petroceltic
commented:
"We are delighted to announce that the final
approval in Algeria of the Enel transaction has been granted
which will allow for the deal's swift completion in the
coming days. We look forward to formally welcoming Enel as an
important new partner to the Isarene licence. This
transaction, allied to the excellent results from our
appraisal campaign, has confirmed the quality and value of
our Algerian asset and provides a firm foundation for the
ongoing growth and diversification of our
business"
Ends
For further information, please contact:
Brian O' Cathain/Tom Hickey, Petroceltic
International Tel:
+353 (1) 421 8300
Philip Dennis/Rollo Crichton-Stuart,
Pelham Bell
Pottinger Tel:
+44 (20) 7861 3919
Joe Murray / Joe Heron, Murray
Consultants Tel:
+353 (1) 4980300
John Frain / Stephen Barry,
Davy Tel:
+353 (1) 679 6363
Recommend :
