Petroceltic to raise $120m from share placing

Oil and gas exploration firm Petroceltic has conditionally raised about $120.5 million to finance its appraisal programme in Algeria and proposed drilling in Italy.

• The placing is conditional on shareholder approval, and includes 635,294,000 new ordinary shares at a price of 12.75 pence (sterling) per share.

  The company plans to begin a six-well drilling programme in the second half of the year, with appraisal wells in Italy and Algeria and exploration wells in onshore Tunisia.

  “This placing will fund the appraisal programme to optimise development plans for our major discoveries on the Isarene permit in Algeria,” said chief executive Brian O’Cathain.

  “It also facilitates the drilling of a further well to determine the quality and extent of the oil discovery on the Elsa field in the Adriatic offshore Italy. We were particularly pleased that the placing was oversubscribed, despite the difficult market conditions.”

  He said the current climate was favourable, with oil prices fairly stable at around $80 a barrel.

  “The climate is good at the moment. We’re not expecting any dramatic changes. When prices stabilise, it’s easier for small companies like us,” he said.

  Petroceltic has said it was interested in taking on partners to work with it in Italy and Algeria. Mr O’Cathain said those talks were continuing.