News

March 24, 2009

Backed By Spanish Cash, AIM’s Petroceltic International Gears Up For Possible Multi-TCF Drilling Campaign In Algeria

Cash is king in the current market and so investors in AIM-quoted Petroceltic International must be enjoying a slightly regal moment as the company draws on the deep pockets of its Spanish backer Iberdrola to forge ahead with its drilling plans in Algeria. Last year the Spanish utility took a 22 per cent stake in the AIM firm, which also has projects in Italy and Tunisia, following an initial US$55 million investment, taking cash in the bank from US$23 million at the start of 2008 to around US$76 million by year end.

It is difficult to underplay the importance of this injection of capital from Iberdrola. “I shudder to think how we would have raised this otherwise,” Brian O’Cathain, Petroceltic’s new chief executive, told delegates at oilbarrel.com’s November conference in reference to the tight lending conditions now prevailing. This cash base means the company has the financial muscle to drill up to seven wells on its promising acreage in Algeria’s Illizi Basin in 2009 as well as up to five wells in Italy...