Petroceltic jumps on Algerian find
SHARES in Petroceltic jumped yesterday after the Dublin-listed oil and gas explorer said it had found more gas than expected at a well in Algeria.
Petroceltic shares bucked the downward trend in London, rising over 8pc in morning trading. They later closed up 4.3pc at 4.15p. The gains helped erase recent losses which have seen Petroceltic's shareprice more than halve in the past six months as the Dublin-based company disappointed investors with news of small gas finds at other wells in Algeria.
"We are delighted to have achieved such excellent flow results," said chief executive of Petroceltic Brian O'Cathain. "These results confirm the potential for good productivity towards the north of the field, are likely to have a positive impact on our estimate of recoverable gas reserves and are very encouraging for the ultimate commercial development of Ain Tsila."
The company yesterday reported a positive outlook for the Ain Tsila field which led investors to speculate the field will yield commercial dividends.
"The rates achieved by the AT-8 well are impressive," said Davy Stockbrokers' Job Langbroek, an analyst who rates the stock outperform.