Petroceltic Secures Funds for Active Programs in Algeria, Italy
Petroceltic announced that at the Annual General Meeting of the Company in Dublin on June 3, 2009, all of the resolutions put to the meeting were passed.
Speaking at the Annual General Meeting, Andrew Bostock, Chairman, said:
"I am pleased to be able to report that all of the resolutions at today's AGM have been approved, including the recently announced share placing, which will now proceed to completion. Petroceltic has raised aggregate gross proceeds of £27.5 million from this placing and is now well funded for active programs in both Algeria and Italy throughout 2009 and 2010. These programs will appraise the extent of discoveries already made in both areas and also extend our operations into new exploration prospects. We are optimistic that this program will start to unlock the value which we believe exists in our portfolio.
"In the period since the last AGM, we have embarked on a journey of significant change in Petroceltic. The start of the multi-well appraisal drilling program in Algeria, just three weeks ago, was a major milestone and would not have been possible without the underlying improvements to our Company made at board, operational and financial levels over the last 12 months. We should also not underestimate the importance of the huge amount of work that has been put in, both in Dublin and on the ground in Algeria, to ensure that we are fully prepared for drilling, not least last year's very successful acquisition of a large seismic program.
"It gives me great pleasure to be able to report that having now got the preparation right in Algeria and with drilling in Italy likely in 2010, we can now look forward to an exciting period of enhanced newsflow in the period between now and the next AGM."
Brian O'Cathain, Chief Executive, told shareholders at the meeting, "This year's Algerian drilling program is focused on prime locations identified in the extensive 3D seismic survey completed in 2008. The discoveries made by ourselves and earlier operators have the potential to deliver substantial reserves of gas and to prove up significant oil prospects. The drilling now underway will appraise this potential.
"Drilling of the INE-2 well on our Isarene permit has been underway since mid-May and we expect a second well to commence during June. The current program envisages a total of 5 to 7 wells in Algeria. Subject to the Company's regulatory announcement obligations, first test results are expected to be available in September in accordance with the announcement provisions of the Production Sharing Agreement with our co-venturer Sonatrach.
"Funding from the placing has also enabled the Company to accelerate the Italian exploration and appraisal program. We are now preparing for the drilling of up to three wells on our Italian acreage during 2009/10," Mr. O'Cathain added.
The remaining shares relating to the £27.5 million share placing announced by the Company on 30 April 2009 will now be issued in accordance with the terms set out in the circular accompanying the notice of meeting, subject only to the admission of these securities to trading on AIM and IEX. It is expected that admission will occur and that dealings in the Second Tranche Shares and Third Tranche Shares will commence on AIM and IEX on 8th June 2009. Following the admission of the new shares, the total number of shares in issue in Petroceltic will be 1,358,261,049.
The meeting today also passed a resolution enabling communications with shareholders to be conducted electronically in future.
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