Petroceltic International gets green light on Algeria project

Petroceltic International has reached a milestone in its development plans for its Ain Tsila gas-condensate field after receiving approval from the Algerian Competent Authorities.

Petroceltic International has reached a milestone in its development plans for its Ain Tsila gas-condensate field after receiving approval from the Algerian Competent Authorities.

The project in Algeria will now move forward into a 30-year development phase following the approvals along with the field's declaration of commerciality in August and an agreement with Sonatrach to market all gas produced.

The approval is conditional on partners committing to initiate certain planning and development works associated with the field next year.

Petroceltic owns a 56.625% interest in Ain Tsila with Sonatrach holding 25% and Enel 18.375%. Petroceltic said it was striving to farm down a further 18.375% of its interest next year.

The approved plan of development will involve the production of gross reserves of 2.1 trn cubic teet of sales gas, 67m barrels of condensate and 108m barrels of liquid petroleum gas.

Brian O'Cathain, Chief Executive of Petroceltic, said: "This approval marks a major milestone for Petroceltic and allows us, along with our partners ENEL and Sonatrach, to move forward to focus on implementing the Development Plan with the goal of achieving first gas in the third quarter of 2017. The regulatory approval of the plan of development should also allow Petroceltic to book the reserves associated with this asset and to finalise the outstanding financial arrangements associated with the farm-in by ENEL which was completed earlier this year."

Development planning will begin next year and first gas is scheduled for the third quarter of 2017.

Shares rose 1.68% to 6.66p at 11:45 Friday for the company which has a market capitalisation of £294.03m.

RD

Recommended

Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022
Britain’s most-bought shares w/e 5 August
Stocks and shares

Britain’s most-bought shares w/e 5 August

A look at Britain’s most-bought shares in the week ending 5 August, providing an insight into how investors are thinking and where opportunities may l…
9 Aug 2022
Where to find inflation-resistant stocks
Investment strategy

Where to find inflation-resistant stocks

Terry Smith’s latest update contains some valuable pointers for investors looking to protect against inflation.
8 Aug 2022
A low-risk way to beat inflation
Share tips

A low-risk way to beat inflation

Demand for care-home places is strong and the sector should be able to raise prices ahead of costs, says Max King.
8 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Fear of missing out – what should investors do now?
Investment strategy

Fear of missing out – what should investors do now?

Markets have rallied from their mid-June lows. But if you missed out, as most investors did, what should you do now? Max King explains.
8 Aug 2022