Petroceltic Sells Option for Stake in Tunisian License
Petroceltic has sold an option, which if exercised, will result in the farming out of 38% interest in the Ksar Hadada Production Sharing Contract (PSC) onshore south east Tunisia. The option agreement is with Independent Resources (Ksar Hadada) Ltd, a wholly owned subsidiary of Independent Resources plc. The agreement provides for a fee payment of $400,000 in cash to Petroceltic, which has now been received.
The Ksar Hadada permit was awarded to Petroceltic in December 2003. The block covers an area of 7,012km2, with the main geological target contained within Ordovician quartzite reservoirs which have proved very prospective in Libya and Algeria, where several large oil and gas discoveries have been made. There are two significant prospects in the permit named Sidi Toui and Oryx. Previous wells in the permit have encountered oil and gas shows and new seismic has been acquired in 2005 which will be used to determine future drilling locations.
Should the option be exercised, Petroceltic will retain a 57% net interest and remain operator and Independent Resources will pay 40% of all future seismic and drilling costs on the Tunisian license. The Option has to be exercised during the first exploration period of the PSC which runs until March 2008. All drilling and seismic obligations in the first period have been fulfilled. If the option is not exercised Petroceltic will retain 100% (95% net) interest.
John Craven, CEO of Petroceltic said:
"I am pleased to be able to announce this positive development in the management and rationalization of our Tunisian assets. Consistent with the Company's strategy of retaining a material equity stake and operatorship in its projects, the Board has taken the decision to seek an equity stake appropriate to the risk/reward level for its Tunisian assets"
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