Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/petroceltic-provides-update-on-algeria-farmout-pro.shtmlPetroceltic provides update on Algeria farmout process
Petroceltic International confirms that it has received formal notification that Sonatrach, the Algerian State Oil Company, is exercising its right under the Isarene
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Petroceltic International confirms that it has received formal notification that Sonatrach, the Algerian State Oil Company, is exercising its right under the Isarene Production Sharing Contract (PSC) to pre-empt the Company's proposed sale of an 18.375% interest in the PSC.
The commercial terms and proceeds of pre-emption are similar to those agreed between the Company and a potential third party purchaser and comprise a $20 million payment on completion, a $140 million development carry and two contingent payments of $10 million each based on the achievement of certain early production and technical completion milestones. Following the completion of the transaction, Sonatrach will hold a 43.375% participating interest, Petroceltic will hold 38.25% and Enel will hold the remaining 18.375%. The transaction is not expected to have any impact on the overall timing for award of major contracts or initiation of detailed development activities.
