Petroceltic losses jump by more than €225m after unsuccessful exploration
Irish oil and gas exploration firm Petroceltic saw losses jump up by more than $250m (€225m) last year due to exploration write-offs and a hefty impairment charge.
The firm made a loss of $282m for the 12 months to the end of 2014 compared to a loss of $19m the year before.
The increased losses were mainly attributed to an exploration write-off of $183m due to unsuccessful wells in Kurdistan, Romania and Egypt and an impairment charge of $86m.
Revenue also contracted for the year, dropping from just under $200m in 2013 to $157.2m. Losses per share jumped from 10.73 cent to 143.5 cent.
The company also announced plans to issue up to $175m three year secured bond, saying that further financing will be required to fully fund its Algerian development.
Petroceltic chairman Robert Adair said:“In 2014, the Group delivered on its production target and generated $157m of revenue from oil and gas sales. Key contracts in respect of the Ain Tsila asset in Algeria were awarded and these are crucial steps towards unlocking the value of this important gas field for Algeria and Petroceltic.
“In June 2014, a share placing raised gross proceeds of $100m and a contemplated bond issue, announced today, plans to raise up to $175m in new funding.”
He added: “The group reserves were reduced as of the end of the year primarily due to the Sonatrach farm-out which completed during the year and will generate up to $180m in funding towards Petroceltic’s share of costs of development in Algeria.
“Exploration results were challenging and the group’s losses for 2014 reflected a write-off of unsuccessful exploration and an impairment charge to reduce the carrying value of producing oil and gas assets. In light of this and the current industry climate, the group has de-emphasised certain exploration initiatives and is focusing its strategy on its core development and producing assets in order to generate greater value for shareholders”.