Petroceltic Revises Estimates Down; Focuses on Kurdistan, Romania

Ireland’s Petroceltic revised down its 2013 full year production estimates to 24,500-25,500 boepd, blaming unexpected events in Egypt. The Irish oil and gas company said in January it saw 2013 production to be between 25,000 boepd and 27,000 boepd.

‘Although there has been no consistent or on-going disruption to the businesses, a number of separate factors caused Egyptian production to be slightly below anticipated levels in the first half,’ reads a note released on Monday.

The company’s loss before tax passed from 3,248,000 in the first six months of 2012 to 5,029,000 dollars in the six months ended 30 June 2013. 

Petroceltic said it will remain committed to Egypt, but announced that its focus in the short term will be its drilling campaigns in Iraq and Romania.

“The first half of 2013 has been a period of solid operational delivery and significant financial and corporate progress… We are now entering a period of potentially transformational exploration activity with high impact drilling campaigns in Kurdistan and Romania,” said Chief Executive Brian O’Cathain in the note reporting the interim results and operational update.

Petroceltic has two offshore licences in Romania, with one well to be drilled on each licence in 2013. In Iraqi Kurdistan it has a 16% participating interest in Dinarta and Shakrok, blocks operated by US-based Hess.

The Irish oil and gas company significantly increased its revenues from 291,000 in the first six months of 2012 to 103,668,000 dollars in the first six months of the current year. Egypt represented the main market, with 58% of the revenues coming from the country.

‘Production during the period averaged 97 mmscfd and 2,825 boepd, slightly below expectations due to a short operational interruption at the South Batra gas plant and a comprehensive well integrity review programme which required two wells to be shut-in pending routine remedial work,’ reads the note.

The company, whose revenues come mostly from gas operations, reports to remain positive about the prospects of the company. 

“In particular, the successful conclusion of our refinancing and negotiation of a second farm-out for the Ain Tsila asset in Algeria clearly demonstrates the strength of the group’s funding position and the quality of our asset base,” added O’Cathain. 

Sergio Matalucci