Gas firm expects Algeria approval

Dublin-based oil and gas exploration company Petroceltic is expected to achieve formal government approval for the future development of its headline Isarene/Ain Tsila gas field asset in Algeria by the end of July.

The company has in the past year increased its resource estimates for the asset by about 70% to 10.3tn cubic feet and has forecast 2017 as the date for first commercial gas flow from the site.

While the Algerian update dominated Petroceltic’s end-of-year assessment yesterday, the company also noted its intention to being drilling at its onshore Rovasenda prospect in Italy before the end of this year.

Chairman Rob Arnott said the company had delivered on all of its key targets for last year.

“The Isarene farm-out deal [to development partner Enel], was approved by the Algerian authorities, the company completed its appraisal campaign on time and under budget, achieving significant success, the plan of development submitted to Sonatrach [Petroceltic’s other partner on the field] on time and the portfolio expanded through the addition of two highly prospective licences in the Kurdistan region of Iraq.”

Mr Arnott said Petroceltic was “well-positioned” — both operationally and financially speaking — to take advantage of opportunities to expand its asset portfolio this year.

“The coming year will see the maturation of our Algerian asset towards development sanction, the booking of commercial reserves and accelerated activity on some exciting exploration in Italy and Kurdistan.”

In financial terms, Petroceltic made a pre-tax loss of almost $8.2m (€6.2m) last year; significantly down on the $12.6m loss generated in 2010.

Revenue also rose from $270,000 to $419,000, while the company’s losses per share fell from 69c to 37c.

The company — thanks mainly to the recent delivery of the $101m from the sale of a near 18.4% stake in Isarene to Italian company Enel — has also cleared its debt and arrived at a net cash position of $64m.