16th May 2014 11:12
LONDON (Alliance News) - Petroceltic International PLC Friday said it narrowed its losses in 2013, as revenues more than tripled, and said it intends to raise USD100 million in a share placing.
Petroceltic is an oil and gas exploration, development and production company with interests in the Middle East and North Africa and producing assets in Egypt and Bulgaria. Its current market capitalisation is GBP272.0 million.
In 2013, the company reported a pretax loss of USD4.5 million, down from a USD6.7 million loss in 2012, driven by a significant increase in revenues to USD196.7 million from only USD59.4 million in 2012, as production increased.
Petroceltic produced 25.2 million barrels of oil equivalent per day in 2013, in line with market guidance, of which 20.4 million came relates to Egypt, and the other 4.8 million to Bulgaria.
Its net loss for the year was USDD18.8 million, down from USD20.0 million last year, following an exploration write-off of USD36.7 million due to unsuccessful wells in Egypt, Bulgaria and Romania.
"I look forward to the remainder of 2014 when some of our material exploration prospects will be drilled in Kurdistan and Romania and front-end engineering and design will commence for our most significant asset, the Ain Tsila gas condensate field in Algeria," said Chairman Robert Adair in a statement.
In a separate statement Friday, the group also said it intends to raise approximately USD100 million in a share placing with institutional investors, at EUR0.3125 each. It said the placing will be done in two tranches, the first of which doesn't require shareholder approval and will see 8.8 million shares placed.
Petroceltic said the proceeds will be used to pursue growth opportunities across its existing portfolio and also through new ventures, to bridge funding pending receipt of Sonatrach farm out proceeds, as well as for additional debt availability under the senior secured facility and for general corporate purposes.
The company said the placing is being conducted, through an accelerated bookbuilding process carried out by joint bookrunners J&E Davy, HSBC Bank PLC and Mirabaud Securities LLP and closing Friday afternoon.
Petroceltic also said that Dovenby Capital Ltd will invest GBP30 million as part of the placing, becoming a new strategic shareholder. Dovenby is an investment company led by Ahmad Fuad, an experienced Malaysian oil and gas industry specialist, Petroceltic said. Fuad served as deputy chairman of Bumi Armada Bhd until his retirement in June 2013. Bumi Armada is a Malaysia-based international offshore oil field services provider.
Petroceltic International shares were up 1.7% at 154.74 pence Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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