Petroceltic keeps up production with well success
PETROCELTIC, the Dublin-based oil and gas exploration and production company, reported a successful drilling operation in the company's Black Sea production well in the Kaliakra gas field off the Bulgarian coast.
The company, whose operational footprint stretches across northern Africa, the Middle-East and south-west Europe, also announced the appointment of Ian Craig as a new non-executive board member. Shares rose 1.5pc to 153.25 pence in London following the news.
"Petroceltic's two announcements this morning are relatively small but still important steps in the development of the group," Davy Stockbrokers said yesterday.
"The Bulgarian tie-in ensures maintenance of its production profile, and the experience of the new (non-executive) board member fits in with the scheduled evolution and growth of the group."
Petroceltic said the Bulgarian well tested at a rate of 12 million cubic feet of gas per day and will produce around 30 million cubic feet of gas per day, compared with 28 million cubic feet of gas in the first half of the year. This first-half production generated revenue of $43m (€32m) and gross profits of $16.4m.
The company said Mr Craig would serve as a non-executive director. The retired Shell gas expert was chief executive of the giant Sakhalin project in the Far East. The 61-year-old will focus on the company's Ain Tsila operations in Algeria.
"Bulgaria generates a significant proportion of the company's revenues and we remain committed to investment in the country. Elsewhere in the region we look forward to results from the multi-well exploration drilling campaign in Romania," chief executive Brian O'Cathain said in a statement.
Last week, Petroceltic reduced its full-year production targets slightly, due to a slowdown in production at its Egyptian assets.