Exploration firm Dragon Oil has an official window of three weeks to put up or shut up regarding the prospect of a takeover of the Irish firm Petroceltic.

Any pending formal takeover offer for Dublin exploration firm, Petroceltic from Middle Eastern player, Dragon Oil is expected by analysts to tempt other parties into a bidding war.

Petroceltic’s contentious $100m-share placing plan is expected to get the green light next week, on the back of the firm agreeing a major restructuring of its board with its largest independent shareholder.

Shares in Irish exploration firm Petroceltic fell by over 7% yesterday on the back of further negative drilling news from its operations in Kurdistan.