Petroceltic sells 18.4% stake in Algerian licence

IRISH exploration company, Petroceltic has sold an 18.4% stake in its leading asset in Algeria to Europe’s second largest utility company for a maximum consideration of $183 million (€123m).

Enel — Italy’s largest power company and Europe’s second largest utility — will pay an initial $36.75m for the share of Petroceltic’s Isarene licence in Algeria, which is on course to generate commercial gas flows by 2015.

The Italians will also cover 49% of the cost of the current appraisal programme at the site, where gross costs are capped at $145m; and up to a maximum of $75m, dependent on the recoverable reserves approved by the Algerian authorities in the final discovery report, expected to be submitted early next year.