Dragon Oil Confirms $800 million Bid for Petroceltic

Dragon Oil is moving closer to formalise its $800 million bid for Petroceltic. As a consequence of the 35% premium included in the offer, Petroceltic shares grew by 20.6% on Monday morning.

‘With the support of the Board and management team of Petroceltic, Dragon Oil has completed an extensive confirmatory due diligence exercise and has submitted to the Board of Petroceltic proposed offer terms of 230 pence sterling in cash per Petroceltic share,’ reads the note released on Monday. 

According to Petroceltic, the offer is conditional to approvals from the Algerian government, given Petroceltic’s stakes in the North African country.

Dragon Oil, which has assets in Turkmenistan and Tunisia, is defining its strategy with its majority shareholder, ENOC. 

ENOC is the Dubai Government owned energy company. 

‘There can be no certainty that any offer will be made or as to the terms of any offer. Shareholders are advised to take no action at this time,’ Petroceltic commented, adding that the note hard been released with the consent of Dragon Oil.  

In August 2013, Dragon Oil unveiled its plans to monetise its gas reserves in Turkmenistan.