Petroceltic given Italian licence boosts

Irish oil and gas explorer Petroceltic International has added another Italian exploration permit to its portfolio and has received environmental clearance on one of its existing licences.

The new permit covers 474 km square in the Central Adriatic offshore Italy and lies 15km from the Elsa discovery and the producing Rospo Mare Field. The company said the addition was a significant step forward in the development of its portfolio in the region.

Petroceltic's neighbouring Adriatic permit received legal go-ahead following appeals and the company is consequently reviewing options on how to proceed, with farm-in partner Orca Exploration Group having an option to earn a 15% interest in these permits following the drilling of the nearby Elsa 2 appraisal well.

Chief Executive Brian O'Cathain noted that the new permit "brings significant additional potential to our Adriatic portfolio directly adjoining and on trend with the Elsa oil discovery".

Elsewhere in the company's Italian portfolio, an onshore licence in the Po Valley where Petroceltic is 47.5% owner, has received an extension to its permitting process to allow principal operator Eni to revise its well location to take into consideration local concerns.

OH