Shares boost for Petroceltic
PETROCELTIC'S shares soared after the Dublin-based explorer said a new well has produced far more gas than expected and management have agreed a new credit line.
The company has disappointed investors with poor results from two other fields this year and amid worries that it did not have enough cash to complete its drilling programme ahead of a payment due soon to Italian oil company Enel.
Yesterday it said its AT-8 well in Algeria was producing twice as much gas as originally forecast and could account for a sixth of the all the gas that Petroceltic hopes to produce. Shares closed up 20pc at 7.2 cents in Dublin last night.
The results exceed the company's first well in northern Algeria and "further confirm the high deliverability achievable" in this field, chief executive Brian O'Cathain said yesterday.
Petroceltic also revealed details of a new $30m (€22m) lending facility with Australia's Macquarie Bank, which may be used to fund the company's Algerian, Kurdistan and Italian operations.
"This is belt and braces; we don't expect to use it," said O'Cathain.