Annual Report & Accounts 2013

 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2013

26. Post balance sheet events
27. Approval of financial statements

26. Post balance sheet events

On 12 February 2014, the Group announced the agreed sale of an 18.375% interest in the Isarene Production Sharing Contract (“PSC”) to Sonatrach, the Algerian National Company for Hydrocarbons. The terms of the deal provide for a consideration of up to a maximum amount of $180m. The consideration comprises $20m payment on completion of the transaction, a further $140m payment of Petroceltic’s share of Isarene project development cost from the effective date of 4 July 2013 and contingent payments of up to $20m based on the achievement of certain project related milestones.

Sonatrach has acquired the interest by exercising its right of pre-emption in relation to a transaction with similar terms previously agreed between Petroceltic and another oil and gas company. Formal completion of this assignment remains subject only to final ratification by the Algerian Government Authorities. Upon completion of the transaction, Sonatrach will hold a 43.375% participating interest in the Isarene PSC, Petroceltic will hold 38.25% and Enel will hold 18.375%.

On 16 May 2014, the Company will announce a proposed placing of new shares to raise $100m. The proceeds of this placing which remains subject (in part) to shareholder approval, will provide the Group with the financial flexibility to undertake all its currently planned exploration programmes, continue the current pace of progress on the Ain Tsila development pending completion of the second farm-out to Sonatrach and to maintain an appropriate balance of debt and equity funding within the business.

27. Approval of financial statements

The Directors approved these financial statements on 15 May 2014.