Oil firm's profits take a dip

EXPLORATION company Petroceltic, which changed its name from Ennex last year, recorded a minor profit of $33,000 (€27,000) in the first six months of the year, down from $69,000 in the same period last year.

Turnover increased from $168,000 to $266,000 as the company received higher royalty payments relating to the Kinsale gas field off the coast of Cork.

Chairman Brian Cusack was upbeat about the company's prospects and said Petroceltic would add to its drilling activity over the next 15 months.

The company has stakes in eight oil and gas ventures in Algeria, Tunisia, Italy and Ireland, each of which had the potential to deliver "significant" returns, said Mr Cusack.

He said the company was in a strong financial position, with $14.6 million in net cash on its books.

Its cash balance was boosted by a successful share placing that raised over $12m from mostly institutional investors.

The company said it achieved "major success" in Algeria by being granted a licence to explore an area in the south of the country, which takes in parts of the Sahara desert.

The area which Petroceltic plans to explore has already seen six successful projects.

"We intend to pursue a very active exploration and appraisal drilling programme on these prospects," said Mr Cusack.

The company also undertook significant preparatory work in neighbouring Tunisia during the period and expects to start drilling in the Sidi Toui area within weeks.

Its Italian operations, which consist of a 40% interest in two licences, one of which is offshore, were described as "exciting" and have the potential to deliver up to 300 million barrels of recoverable oil, according to the company.

Petroceltic also aims to carry out work on an area next to the Kinsale gas field.

It said that its initial study of the area was "encouraging" and that negotiations were under way to get approval for further exploration and possible drilling.