Friday 30 September 2016

Petroceltic set for another two-week lifeline

Published 21/02/2016 | 02:30

Despite Saudi Arabia leading the charge on cutting production last week, these are not happy time for oil markets (stock image)
Despite Saudi Arabia leading the charge on cutting production last week, these are not happy time for oil markets (stock image)

Troubled oil and gas explorer Petroceltic is expected to announce tomorrow that it has received another two-week waiver on repayments to lenders.

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The stay of execution will give the company time to complete more deals as it seeks to raise cash fast.

Earlier this week, Petroceltic told the market it had concluded a deal to sell Egyptian exploration licences to joint-venture partner Edison International for $9.5m in cash.

"This sale continues our strategic initiative, announced in early 2015, to focus the company on the Ain Tsila development in Algeria," chief executive Brian O'Cathain said.

O'Cathain thinks the Ain Tsila project - which the company said in August was progressing towards gas production by 2018 - will be the main driver of the company's long-term value.

It will pique the interest of potential investors, with Petroceltic up for sale after announcing before Christmas that it had breached banking covenants.

Petroceltic's largest shareholder, Worldview Capital Management, has been weighing up an all-cash bid for the rest of the shares.

In addition, a team of former Tullow Oil directors - T5 Oil & Gas - has been mulling a move for the company's Egyptian production assets.

Sunday Indo Business

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