Petroceltic’s share price boosted by settlement

Dublin-based exploration firm Petroceltic has agreed a settlement with one of its former consultants in North Africa, after lengthy legal proceedings, nudging its share price in London up by almost 1% yesterday.

Petroceltic’s traditional asset base is spread across northern Africa — mainly in Algeria and Egypt.

The company last year issued legal proceedings against two former consultants to its African operations, in response to them claiming the firm owed them outstanding fees. The consultants — one of whom was looking for payment of $3.4m — were signed up by Petroceltic’s previous board in 2004 and 2005.

Late last year the High Court granted Petroceltic judgment against one of the parties and yesterday the company announced it had reached a settlement agreement with the other party; Samir Abdelly and Associes International Consulting

All claims have been withdrawn and the proceedings struck out in the High Court. No financial details of the settlement have been disclosed, but a Petroceltic spokesperson said yesterday that the company is pleased to see the matter resolved.

Elsewhere, Botswana Diamonds — the London-listed mining company chaired by John Teeling — said yesterday that a drilling programme at its PL117/2011 prospecting licence in the Orapa region of the southern African country will commence in the third week of September.

Two specific targets will be drilled by Sunland Minerals — a joint-venture between the Irish firm and Russian diamond giant Alrosa — within the 2.9sq km block and are prospective for the discovery of kimberlite bodies.

Mr Teeling said the results of detailed fieldwork studies should be known within days, with expectations high that they will be positive.

Botswana Diamonds is also finalising an extensive exploration programme regarding its own lands in Orapa.

“It has taken two years of painstaking data gathering and analysis to get to first drilling. The programme is eagerly anticipated,” Mr Teeling added.