Petroceltic raises €30m to fund drilling and exploration

IRISH oil and gas exploration company Petroceltic has raised $40 million (€30.2m) through a share placing to help fund its drilling plans in North Africa and the development of its exploration activities in Italy.

The Dublin-headquartered company – in which Spanish energy group, Iberdrola bought a near 23% stake last year for €35m – also yesterday reported that its losses widened last year.

Petroceltic’s pre-tax loss for 2008 amounted to $3.7m, up from a loss of $2.46m in 2007.

Similarly, the company’s loss per share increased – year-on-year – from 33c to 44c.

The company’s operating losses reached $3.7m for the year – mainly from higher administrative expenses and movements in the foreign exchange rates.

However, the company’s revenues did grow from $549m to $962m.

The company’s management told shareholders yesterday that 2008 was “a year of positioning for the future” and that 2009 will herald “the most exciting phase in the company’s history”.

That phase is set to include drilling activity in Algeria – exploration and appraisal drilling is due to begin shortly there – to be followed by drilling in “the most attractive prospects” in the company’s expanded Italian asset portfolio.

Petroceltic non-executive chairman, Andrew Bostock said: “Our shareholders have been patient in waiting for the necessary foundations to be put in place to ensure the company can maximise its chance of success.

“We’re optimistic that this patience will be rewarded as we start to unlock the value which we believe exists in our portfolio.”

The company is to drill seven wells in Algeria.