Algeria - Ratification of Enel Transaction (2021U)
December 19 2011 - 1:00AM
UK Regulatory
TIDMPCI
RNS Number : 2021U
Petroceltic International PLC
19 December 2011
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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