Saturday 21 October 2017

Petroceltic granted another two-week waiver

Brian O'Cathain, CEO of Petroceltic Photo: Paul Sharp
Brian O'Cathain, CEO of Petroceltic Photo: Paul Sharp
Michael Cogley

Michael Cogley

Petroceltic, the troubled oil and gas explorer, has been granted another reprieve from its lenders as the firm continues to sell off its assets.

The company announced this morning that it had received a further waiver on the repayments of its senior bank facility, this time up to March 4.

The waiver was granted under the condition that the explorer makes satisfactory progress towards initiatives put forward in the firm's strategic review.

Petroceltic says that the lenders have also indicated their willingness to consider more waivers.

Last 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.

Meanwhile, the firm announced today that it is to start the development of drilling on the Ain Tsila gas and condensate field in Algeria.

Speaking about the firm's drilling announcement Mr O'Cathain said that Petroceltic would look to build on the success of earlier wells in the northern part of the field.

"Ain Tsila is a world-class asset and the main focus of our business. We are collaborating with our partners on a number of opportunities to reduce overall development risk and enhance long term-field recovery and value, and these will be progressed in parallel with the EPC award process," Mr O'Cathain said.

 

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