Issues response to Dragon Oil announcement to not pursue deal: remains confident in the ongoing execution of its strategy as an independent company
The Board of Petroceltic remains confident in the ongoing execution of its strategy as an independent company, as stated in the Interim Results published on 17 September 2014. Petroceltic's production and development business has delivered a strong performance to date in 2014, with important progressions made and milestones met regarding our world class Ain Tsila asset in Algeria. In the last twelve months, the farm-out to Sonatrach has closed, funds have been received, the gas sales contract with Sonatrach has come into effect, and the Front-End Engineering and Design contract has been awarded to Chicago Bridge and Iron Company.
It is noteworthy that the Company's flagship gas condensate project in Algeria, which is expected to start production in 2018, is unlikely to be affected by the current volatility in crude oil markets, given the forecast level of oil prices at that time. Additionally, the majority of Petroceltic's current production is sold at a fixed gas price in Egypt, and is therefore unaffected by short-term oil price volatility.
As previously announced the Company is planning to host a Capital Markets Day where senior management will present the strategy and future plans for the business. The date for this will be confirmed shortly.
As a result of its announcement, Dragon Oil will, except with the consent of the Irish Takeover Panel, be bound by the restrictions of Rule 2.8 of the Irish Takeover Rules.