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2 Aug 2013 16:34
Dublin
2 August 2013
Petroceltic International Plc
Determination of Contingent Payment under Enel Farmout
Petroceltic International plc ("Petroceltic" or "the Company"), the upstream oil and gas exploration and production company focussed on North Africa, the Mediterranean and Black Sea regions provides an update on the contingent payment due from Enel Trade SpA ("Enel") in relation to the 2011 farmout of an 18.375% interest in the Ain Tsila project in Algeria
Under the 2011 farmout agreement, a contingent payment could be earned by Petroceltic based on the specific terms of the Declaration of Commerciality in respect of the Ain Tsila project. The key factors influencing the calculation included field reserves, production rates and the proportion of overall reserves produced on an annual basis.
Following approval of the Declaration of Commerciality in late 2012, Petroceltic invoiced Enel for $26.9 million based on its interpretation of the relevant terms of the agreement. Enel requested clarification of the basis of calculation of this amount and, with the consent of both parties the matter was referred to a Queen's Council for mutually binding determination. This process has now concluded and the contingent payment has been confirmed as $26.9 million. The payment is due to be made to Petroceltic on or before 14 August.
Ends
For further information, please contact:
Brian O' Cathain /Tom Hickey, Petroceltic International Tel: +353 (1) 421 8300
Philip Dennis / Rollo Crichton-Stuart,
Pelham Bell Pottinger Tel: +44 (20) 7861 3919
Joe Murray / Joe Heron, Murray Consultants Tel: +353 (1) 4980300
John Frain/Roland French, Davy (Nomad and ESM Adviser) Tel: +353 (1) 679 6363
Notes to Editors:
Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on North Africa, Mediterranean and Black Sea Regions, and listed on the London Stock Exchange's AIM Market and the Irish Stock Exchange's ESM Market. The Company has production, exploration and development assets in Algeria, Egypt, Bulgaria, Romania, the Kurdistan Region of Iraq, Italy and Greece.
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