Company name Petroceltic Intnl
Headline Interim Results and Operational Update


RNS Number : 8157K
Petroceltic International PLC
28 August 2012
 

                                   

Dublin

28 August 2012

 

 

 

Results for the six months ended 30 June 2012.

Petroceltic International plc ("Petroceltic" or "the Company"), the independent oil & gas exploration company focused on the Middle East-North Africa ("MENA") and Mediterranean region today announces its results for the period ended 30 June 2012.

Highlights:

·     Proposed Merger of Petroceltic & Melrose Resources plc ('Melrose') announced 17 August.

·     Declaration of Commerciality announced 9 August for the Ain Tsila Field in Algeria.

·     Final Discovery Report filed with the Algerian Competent Authorities.

·     Petroceltic estimates the Ain Tsila field to contain gross resources of 2.2 Tcf of sales gas, 70 MMbbl of condensate and 113 MMbbl of LPG.

·     Agreement reached with Sonatrach to market the Ain Tsila gas at a price linked to Brent oil price.

·     Seismic acquisition underway in the Kurdistan Region of Iraq.

·     Award of two licences in the central Adriatic, offshore Italy.

·     Italian Legislative Decree 83/2012 approved by Italian Parliament 12 August, provides for the potential  resumption of activities offshore Italy.

·     Preparations for drilling of high value Carpignano Sesia prospect (formerly Rovasenda) in Italy in early 2013.

·     Funded and well placed to continue to develop and grow the business. Cash position of US$51.1m at 27 August 2012 with no debt.

 

Brian O'Cathain, Chief Executive of Petroceltic commented:

"This is a transformational time for Petroceltic, the proposed merger with Melrose has a compelling strategic and commercial logic, creating a regional leader with a diversified portfolio of producing, development and high impact exploration assets. Upon approval by shareholders of Petroceltic and Melrose of the proposed merger, the Enlarged Group will be well funded, capable of sustained long term growth and of delivering significant value to our shareholders. During the first half of 2012, Petroceltic has achieved some significant operational and commercial milestones in both Algeria and Italy, and has made good progress with seismic acquisition in the Kurdistan Region of Iraq. Our next important task will be the commencement of the development planning phase on Ain Tsila, in conjunction with our partners Sonatrach and Enel".

 

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) 498 0300

John Frain, Davy                                                                      Tel: +353 (1) 679 6363

 

Dr. Dermot Corcoran, Head of Exploration, Petroceltic International plc, is the qualified person who has reviewed and approved the technical information contained in this announcement. Dr. Corcoran has a B.Sc in Geology, a M.Sc. in Geophysics, and a Masters degree in Business Administration, all from the National University of Ireland, Galway. He also holds a Ph.D in Geology from Trinity College, Dublin. Dr. Corcoran has over 20 years experience in oil & gas exploration and production, and has previously worked at ExxonMobil, the Petrofina Group, and Statoil.

 

Notes to Editors:

 

Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on North Africa, the Middle East and the Mediterranean, and listed on the London Stock Exchange's AIM Market and the Irish Stock Exchange's ESM Market. The Company has exploration and appraisal assets in Algeria, the Kurdistan Region of Iraq and Italy.

 



 

Chairman and Chief Executive's Statement

We are pleased to present Petroceltic's Interim results for the six months ended 30 June 2012. This was a period characterised by intense activity and commercial negotiations in order to agree the proposed merger of Petroceltic and Melrose. This transaction represents a truly transformational step for both companies. The combination of Petroceltic and Melrose will create a uniquely focused, yet diversified Company and the strategic fit is compelling with both companies bringing skills and expertise that will enhance the enlarged business. Petroceltic brings a portfolio of upstream assets with future production potential whilst Melrose provides immediate access to producing assets in Egypt and Bulgaria, and the operational skills and expertise which Melrose's staff have developed in both onshore and offshore shallow water activities. This skill set will greatly assist in the development of Petroceltic's asset portfolio.

Aside from this transformational change, other significant operational progress has been achieved in our core areas of focus in both Algeria and Italy, in addition to steady advancement of the seismic programme in the Kurdistan Region of Iraq.

Operations Update

Algeria

The first quarter of 2012 saw the completion of the farm-in deal with Enel and the subsequent receipt of over US$100 million for an 18.375% interest in the Isarene Permit. Petroceltic partly applied these funds to fully pay down the Macquarie bridging loan which had been used to fund the remaining elements of the appraisal programme prior to the closing of the Enel farm-in.

Petroceltic submitted its draft Final Discovery Report ('FDR') to Sonatrach for discussion and agreement in early January 2012. Throughout the first six months of 2012, Petroceltic and Enel worked together to successfully negotiate the commercial terms of the field development plan and gas commercialisation strategy with Sonatrach. In April 2012 an extension to the original deadline of 26 April 2012 was granted to allow for a conclusion to these negotiations. On 8 August 2012, the parties to the Isarene Production Sharing Contract ('PSC') agreed a Formal Declaration of Commerciality.

The Declaration of Commerciality and supporting documentation which includes the final agreed FDR has been submitted to the Algerian Competent Authorities. Following their approval, the parties to the PSC will be granted a 30 year exploitation permit for the Ain Tsila field. As part of the process to achieve the Declaration of Commerciality, Petroceltic and Enel entered into an agreement with Sonatrach to have Sonatrach market all of the gas from the Ain Tsila development at a well-head price linked to Brent Oil prices.

Petroceltic estimate the field to contain gross resources of 2.2 tcf of sales gas, 70 mmbbl of condensate and 113 mmbbl of LPG. Development work is expected to commence in 2014 and first gas is planned for the third quarter 2017, initially from an estimated 18 vertical wells produced through a new gas processing plant at an annual average wet gas plateau rate of 355 million standard cubic feet/day (10.05 million standard cubic metres/day). The plateau length is 14 years and an additional 106 development wells are estimated to be required during the period to maintain this production plateau.

Italy

Legislative Decree 83/2012, published on the 26 June 2012, was approved by both houses of the Italian parliament and became law on the 12 of August 2012 following its publication in the Italian official journal (Gazzett Aufficiale). Under the Decree, the restriction applicable to offshore exploration and production activities under DL 128 will now apply to activities up to 12 nautical miles offshore the Italian coastline. However, under this new law, certain provisions of DL 128 will no longer apply to exploration licences that had already been issued or licence applications which had already been made prior to DL 128 coming into force.

Petroceltic holds interests in a number of licences and licence applications which were in existence prior to the enactment of DL 128. Petroceltic will now progress discussions with the relevant national and regional institutions concerning the resumption of activities on the Elsa project and elsewhere in its Adriatic offshore portfolio.

In July 2012, Petroceltic announced the award of two licences in the central Adriatic offshore Italy. Licences B.R 270 and B.R 271 are 144.5 km2 and 327.1 km2 in size respectively, and run for six years from the date of award. The Company has also applied for three other adjacent exploration permits in this area, which are currently under consideration by the Ministry of Economic Development. The permits, in water depths of 30 to 150 metres, are located adjacent to existing oil and gas fields which have demonstrated three working hydrocarbon plays in this region.

Operations in the Po Valley continue to progress with plans in place to commence well operations in early 2013 on the high value Carpignano Sesia prospect (formerly Rovasenda) which is operated by ENI.

Kurdistan Region of Iraq

The Dinarta (1,319 km2) and Shakrok (418 km2) blocks are operated by Hess and include a work programme commitment for the initial 3 year exploration period consisting of three components: geological fieldwork, acquisition of a minimum of 750 kilometers of 2D seismic data and the drilling of one exploration well in each block. The geological field work has now been completed and the 2D seismic programme began in May 2012 with an intention to acquire approximately 850 kilometres of seismic data over the two blocks. It is anticipated that the first exploration well, most likely on the Shakrok licence, will be spudded in July 2013.

Financial

In February 2012, Petroceltic received over US$100m in funds from the Enel farm-in deal. These funds were utilised to repay in full the US$27m bridging loan from Macquarie. The remaining amount is being used to fund the company's on-going operational activities in Algeria, Italy and the Kurdistan Region of Iraq. Cash on hand at 30 June 2012 was US$54.5m with no debt.

The loss for the period to 30 June 2012 was US$3.2m, down from US$4.1m in the comparable period in 2011. This decrease results from a reduction in administrative expenses of US$1.8m due to lower activity levels following completion of the drilling programme, offset by an increase in new venture exploration costs of US$0.4m and an increase in the cost of share-based payments of US$0.8m. Finance income also increased by approximately US$0.25m due to higher cash levels being held on deposit.

Capital expenditure in the period amounted to US$10.6m which primarily related to the completion  of the Ain Tsila appraisal campaign, Italian exploration costs and the on-going seismic programme in the Kurdistan Region of Iraq.

During the first half of 2012, the Group focussed on optimising its operational efficiency following the completion of the Isarene exploration and appraisal campaign. A key financial aim is to continue to meet current and future operational needs whilst keeping a tight focus on cost control.

Board Changes

On 15 August, the Company announced the resignation of Alan McGettigan from the Board of Petroceltic. The Board thanks Alan for his dedication and service to the Company over the last four years and wishes him every success in his future endeavours. The Board would like to particularly thank Alan for his contribution to the recent successful gas sales negotiations in Algeria.

Outlook

The focus of the Company over the coming months is to complete the merger with Melrose, progress development of the Ain Tsila field in Algeria and advance our offshore and onshore operations in Italy as well as move towards drilling our first exploration well in the Kurdistan Region of Iraq in 2013. With solid funding in place, we look forward to making further progress in the second half of the year.

Responsibility Statement

Each of the Directors, whose names and functions are listed in the 2011 Annual Report, with the exception of Alan McGettigan who resigned as a Director on 15 August 2012, confirm that, to the best of each person's knowledge and belief:

a)   the condensed interim financial statements comprising the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows and related notes have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

b)   the interim management report includes a fair review of the information which would be required by:

i.    Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations 2007, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

ii.    Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations 2007, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

 

Principal risks and uncertainties

Petroceltic is subject to various risks and uncertainties that may impact its business in the remaining six months of the financial year as well as in the more distant future. The principal risks and uncertainties faced by the Group remain unchanged from the disclosures included in the Annual Report as at 31 December 2011. The Board categorises the risks as follows: geopolitical, technical & operational, financial, and currency. A more detailed explanation of the risks can be found on pages 29 and 61-64 of the 2011 Annual Report and Financial Statements.

 

On behalf of the Board of Directors,

           

Rob Arnott                                                                               Brian O'Cathain         

Chairman                                                                                Chief Executive

27 August 2012                                                                       27 August 2012



 

Condensed Consolidated Statement of Comprehensive Income

For the period ended 30 June 2012







Unaudited
6 months ended 30 June 2012

Unaudited
6 months ended
30 June 2011

Full year ended 31 December 2011

Note

US$'000

US$'000

US$'000

Continuing Operations





Revenue

2

291

158

419






Administrative expenses


(1,831)

(3,602)

(4,834)

Amortisation & depreciation


(201)

(185)

(367)

Exploration costs written off


(1,243)

(799)

(3,182)

Cost of share-based payments


(1,234)

(461)

(1,759)

Results from operating activities


(4,218)

(4,889)

(9,723)






Finance income  

3

1,045

787

1,658

Finance expense

3

(75)

-

(108)






Loss before tax


(3,248)

(4,102)

(8,173)






Income tax expense


-

-

-






Loss for the period and total comprehensive income - all attributable to equity holders of the Company

(3,248)

(4,102)

(8,173)











Basic loss per share (cents)


(0.14)

(0.20)

(0.37)

Diluted loss per share (cents)


(0.14)

(0.20)

(0.37)

 

 



 

Condensed Consolidated Statement of Changes in Equity




For the period ended 30 June 2012







Unaudited

Share capital

Share premium

Capital conversion  reserve fund

Share-based payment reserve

Retained deficit

 Total equity


US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

Period ended 30 June 2011







Balance at 1 January 2011

48,383

305,112

51

7,201

(94,699)

266,048








Total comprehensive income for the period







Loss for the financial period

-

-

-

-

(4,102)

(4,102)








Total comprehensive income for the period

-

-

-

-

(4,102)

(4,102)








Transactions with owners, recorded directly in equity





Contributions by and distributions to owners






Shares issued

6,371

50,948

-

-

-

57,319

Share-based payment charge

-

-

-

501

-

501

Effect of share options exercised or lapsed

-

-

-

(505)

505

-

Total transactions with owners

6,371

50,948

-

(4)

505

57,820








Balance at 30 June 2011

54,754

356,060

51

7,197

(98,296)

319,766








 

Period ended 30 June 2012







Balance at 1 January 2012

54,754

355,921

51

8,840

(101,791)

317,775








Total comprehensive income for the period







Loss for the financial period

-

-

-

-

(3,248)

(3,248)








Total comprehensive income for the period

-

-

-

-

(3,248)

(3,248)








Transactions with owners, recorded directly in equity





Contributions by and distributions to owners






Shares issued

-

-

-

-

-

-

Share-based payment charge

-

(53)

-

1,835

-

1,782

Effect of share options exercised or lapsed

-

-

-

-

-

-

Total transactions with owners

-

(53)

-

1,835

-

1,782








Balance at 30 June 2012

54,754

355,868

51

10,675

(105,039)

316,309

 



 

Condensed Consolidated Statement of Changes in Equity (continued)




For the period ended 30 June 2012







 


Share capital

Share premium

Capital conversion  reserve fund

Share-based payment reserve

Retained deficit

 Total equity


US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

For the year ended 31 December 2011







Balance at 1 January 2011

48,383

305,112

51

7,201

(94,699)

266,048








Total comprehensive income for the year







Loss for the financial year

-

-

-

-

(8,173)

(8,173)








Total comprehensive income for the year

-

-

-

-

(8,173)

(8,173)








Transactions with owners, recorded directly in equity





Contributions by and distributions to owners






Shares issued

6,371

50,809

-

-

-

57,180

Share-based payment charge

-

-

-

2,720

-

2,720

Effect of share options exercised or lapsed

-

-

-

(1,081)

1,081

-

Total transactions with owners

6,371

50,809

-

1,639

1,081

59,900








Balance at 31 December 2011

54,754

355,921

51

8,840

(101,791)

317,775

 

 



 

Condensed Consolidated Statement of Financial Position

As at 30 June 2012







Unaudited
30 June 2012

Unaudited
30 June 2011

Audited 31 December 2011


Note

US$'000

US$'000

US$'000






Assets





Non-current assets





Intangible assets

5

269,378

243,406

360,933

Property, plant and equipment


357

651

504

Total non-current assets


269,735

244,057

361,437






Current assets





Trade and other receivables


2,632

924

1,021

Cash and cash equivalents


54,501

89,612

9,075

Total current assets


57,133

90,536

10,096






Total assets


326,868

334,593

371,533






Equity





Share capital

7

54,754

54,754

54,754

Share premium

7

355,868

356,060

355,921

Capital conversion reserve fund


51

51

51

Share-based payment reserve

7

10,675

7,197

8,840

Retained deficit


(105,039)

(98,296)

(101,791)

Total equity


316,309

319,766

317,775






Liabilities- current





Trade and other payables


4,048

12,857

23,381

Loans & borrowings

6

-

-

23,413

Derivative liability


499

-

882






Liabilities- non current





Decommissioning provisions


6,012

1,970

6,082






Total liabilities


10,559

14,827

53,758






Total equity and liabilities


326,868

334,593

371,533

 

 



 

Condensed Consolidated Statement of Cash Flows

For the period ended 30 June 2012





Unaudited
6 months ended 30 June 2012

Unaudited
6 months ended
30 June 2011

Full year ended 31 December 2011


US$'000

US$'000

US$'000

Cash flows from operating activities




Loss before tax

(3,248)

(4,102)

(8,173)

Adjustments for:




Finance income

(1,045)

(787)

(1,658)

Finance expense

75

-

108

Amortisation & depreciation

201

185

367

Exploration costs written off

1,243

799

3,182

(Gain)/loss on investment

-

-

(3)

Cost of share-based payments

1,234

461

1,759

Cash from operations before changes in working capital

(1,540)

(3,444)

(4,418)





(Increase)/decrease in trade and other receivables

(1,611)

3,299

3,202

(Decrease)/increase in trade and other payables

(19,333)

(856)

9,668

(Decrease)/increase in provisions

(44)

(20)

-

Net cash from operating activities

(22,528)

(1,021)

8,452





Cash flows from investing activities




Expenditure on intangible assets

(10,725)

(49,666)

(164,529)

Proceeds on farm-out  of intangible assets

102,092

-

-

Expenditure on property, plant and equipment

-

(86)

(86)

Interest received

662

516

882

Sale of financial investments

-

34

34

Net cash generated by/(used in) investing activities

92,029

(49,202)

(163,699)





Cash flows from financing activities




Proceeds from the issue of new shares

-

59,896

59,896

Payment of share issue transaction costs

-

(2,576)

(2,594)

Drawdown of bank loan

3,000

-

24,000

(Repayment) of bank loan

(27,000)

-

-

Net cash (used in)/generated by financing activities

(24,000)

57,320

81,302





Net increase/(decrease) in cash and cash equivalents

45,501

7,097

(73,945)

Effect of foreign exchange fluctuation on cash and cash equivalents

(75)

271

776

Cash and cash equivalents at start of period

9,075

82,244

82,244

Cash and cash equivalents at end of period

54,501

89,612

9,075





 



 

Notes to the interim condensed financial statements

1. Accounting policies and basis of preparation

Petroceltic International plc is a company domiciled in the Republic of Ireland. The Condensed Consolidated Interim Financial Statements ("the Interim Financial Statements") of the Company as at and for the six months ended 30 June 2012 comprise the Company and its subsidiaries (together referred to as the "Group").

This condensed set of financial information has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. The Interim Financial Statements have been prepared applying the accounting policies that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 December 2011.  There are no new standards, amendments to standards or interpretations which are mandatory for the first time for financial periods commencing on 1 January 2012 which have a significant impact on the reported results.

The comparative information provided in the Interim Financial Statements relating to the year ended 31 December 2011 does not comprise statutory financial statements.  Those statutory financial statements on which the Company's auditors gave an unqualified audit opinion, have been delivered to the Registrar of Companies.

This condensed consolidated interim financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2011, which are available on the Company's website, www.petroceltic.ie.

The Interim Financial Statements for the six months ended 30 June 2012 are unaudited and have not been reviewed by the auditors.

The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, being a period of not less than 12 months from the date of these Interim Financial Statements. Accordingly, they continue to adopt the going concern basis in preparing the financial information.

The Interim Financial Statements were approved by the Board of Directors on 27 August 2012.

 


2. Segmental analysis


Algeria
6 months ended

Kurdistan
6 months ended

Italy
6 months ended

Ireland
6 months ended

Corporate & other

6 months ended

Total
6 months ended

Unaudited

30 June 2012

US$'000

30 June 2011

US$'000

30 June 2012

US$'000

30 June 2011

US$'000

30 June 2012

US$'000

30 June 2011

US$'000

30 June 2012

US$'000

30 June 2011

US$'000

30 June 2012

US$'000

30 June 2011

US$'000

30 June 2012

US$'000

30 June 2011

US$'000



























Total external revenue

-

-

-

-

-

-

291

158

-

-

291

158














Interest income

-

-

-

-

-

-

-

-

662

516

662

516

Exploration costs written off

-

-

-

-

(14)

(116)

-

-

(1,229)

(683)

(1,243)

(799)

Depreciation and amortisation

-

-

-

-

-

-

(54)

(35)

(147)

(150)

(201)

(185)

Unallocated amounts - other corporate expenses

-

-

-

-

-

-

-

-

(2,757)

(3,791)

(2,757)

(3,791)














Reportable segment profit/(loss) before income tax

-

-

-

-

(14)

(116)

237

123

(3,471)

(4,108)

(3,248)

(4,101)














Reportable segment assets

202,900

233,603

56,845

-

11,901

9,679

323

391

54,898

90,920

326,868

334,593

Capital expenditure

6,350

41,152

3,004

-

1,250

2,713

-

-

1,242

5,518

11,860

49,383

Reportable segment liabilities

(8,071)

(10,003)

(1,098)

-

(227)

(48)

-

-

(1,163)

(4,775)

(10,559)

(14,826)

Group revenue is generated in the Republic of Ireland and comprises royalty income from the production of gas from the Group's interest in certain Kinsale gas fields.

Reportable segment profit/(loss) before income tax reconciles to the loss before tax within the Consolidated Statement of Comprehensive Income.

Reportable segment assets and liabilities reconciles to the total assets and total liabilities within the Consolidated Statement of Financial Position.


3. Finance income and expense





Unaudited
6 months ended 30 June 2012 US$'000

Unaudited
6 months ended 30
June 2011 US$'000

Full year ended 31 December 2011
US$'000













Interest income

662

516

882

Foreign currency gains

-

271

776

Change in fair value of derivative financial instrument

383

-

-






1,045

787

1,658

 

Finance expense

814

-

1,645

Foreign currency losses

75

-

-

Change in fair value of derivative financial instrument

-

-

108





Total finance expense for the period/year

889

-

1,753

Interest expense capitalised

(814)

-

(1,645)

Finance expense recognised in profit or loss

75

-

108

 

Net finance income for the period/year

970

787

1,550

 

 

 

4. Loss per share





Unaudited
6 months ended 30 June 2012

Unaudited
6 months ended 30
June 2011

Full year ended 31 December 2011





Basic and diluted loss per ordinary share:








Loss for the period/year US$'000

(3,248)

(4,102)

(8,173)









Number of ordinary shares in issue - start of period/year

2,369,605,049

2,014,355,049

2,014,355,049





Effect of shares issued during the period/year

-

33,813,889

196,298,077





Weighted average number of ordinary shares in issue - basic & diluted

2,369,605,049

2,048,168,938

2,210,653,126

Basic loss per ordinary share (in cents)

(0.14)

(0.20)

(0.37)

Diluted loss per ordinary share (in cents)

(0.14)

(0.20)

(0.37)

 

Share options and warrants would have an anti-dilutive effect on the loss per share calculation and as a result the diluted loss per share is the same as the basic loss per share.



 

5. Capital expenditure

Capital expenditure during the period amounted to US$10.6m. Capital expenditures were split between Algeria US$6.3m, Kurdistan US$3m and Italy US$1.3m. In addition to this US$1.2m was invested in new venture activities which primarily represents the exploration costs written off in the statement of comprehensive income. Offsetting capital expenditure on intangible assets were amounts received from farm-in partners during the period of US$102m.

 

6. Loans and borrowings







Unaudited
30 June 2012

31 December 2011


US$'000

US$'000




Bridge loan

-

23,413

 

$24m was drawn on the US$30m bridging loan facility with Macquarie Bank Limited at 31 December 2011 with a further US$3m drawn early in 2012.  This loan was repaid in full on 13 February 2012.  Under the terms of the facility, warrants were issuable, based on the amount and timing of drawings.  As at the date of repayment, warrants to acquire a total of 59,069,802 shares in the Company had been issued to Macquarie and no further warrants are issuable.  All warrants were priced on the dates of individual issuances at prices from Stg£0.0452p to Stg£0.0824p based on the volume weighted average price during the five business days preceding each issuance.

 

7. Share capital, share premium and warrants

No shares were issued during the period and no share options were exercised during the period under employee share option plans.

26,227,508 warrants were issued in the period to Macquarie Bank Limited in the context of thebridging loan facility as discussed in Note 6 above bringing the total warrants issued to 59,069,802.

 

8. Related party transactions

The Group uses the taxation and payroll services of LHM Casey McGrath on an arms length basis. Con Casey is a partner of that accountancy practice. Total fees invoiced to the group for these services for the period (1 January to 30 June 2012) was US$20,776 (period from 1 January 2011 to 30 June 2011:  US$77,721).

 

 

9. Commitments

In accordance with the relevant production sharing contracts, Petroceltic has an obligation to contribute its share of the minimum work programmes for the Dinarta and Shakrok PSC's in the Kurdistan Region of Iraq. The minimum work programme is to acquire 750km of 2D seismic and drill a minimum of one exploration well per block.

 

10. Events after the reporting date

·     On 17 August 2012, a proposed merger of Petroceltic and Melrose was announced. For more information, please see the Petroceltic website www.petroceltic.ie.

·     On 9 August 2012, a formal Declaration of Commerciality was announced for the Ain Tsila natural gas field situated in the Illizi basin of  Algeria.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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