‘Detailed talks’ on bid for oil explorer

Dragon Oil has said it remains in "detailed discussions" with its backers over a proposed bid for Irish exploration firm Petroceltic.

The Dubai-based explorer — which also has its shares listed on the Irish Stock Exchange — said last week it was considering making a cash 230p per share/€636m takeover offer for Petroceltic, a transaction which would extend Dragon’s geographical reach to southern Europe, Northern Africa, and Kurdistan.

Dragon — which has undertaken due diligence regarding the Dublin firm — is talking with the Emirates National Oil Company, which owns 54% of its business. It would also need to gain approval from the Algerian government, given the amount of assets held in that country by Petroceltic.