24th Jul 2015 09:31
LONDON (Alliance News) - Petroceltic International PLC Friday said it has transferred its interest in the Isarene Production Sharing Contract in Algeria to its wholly owned subsidiary Petroceltic Ain Tsila Ltd.
Petroceltic said it was informed of the official transfer by the Council of Ministers in Algeria on Wednesday.
The company was awarded operatorship of the Isarene PSC in April 2005 with a 75% equity interest which has since fallen to a 38.25% stake as of Friday.
The contract covering the Ain Tsila gas condensate field is the company's key asset, and Petroceltic is aiming to produce 2.1 trillion cubic feet of sales gas and 179 million barrels of liquids, comprising 69 million barrels of condensate and 110 million barrels of liquid petroleum gas over the 30 year PSC period.
Petroceltic is holding its annual general meeting today, which is expected to hit a few bumps due to the ongoing battle between the company and its largest shareholder Worldview Capital Management Ltd.
Worldview has called for two separate extraordinary general meetings in the last month. The first to discuss the company's proposed bond issue and the borrowing powers its board holds, which opened a new chapter in its ongoing battle with the management and board of Petroceltic over the company's plans to pledge its "crown jewel" asset as security for a USD175 million bond issue.
Worldview had claimed Petroceltic had "run out of money" and therefore was placing the key Ain Tsila gas condensate field in Algeria, as security for the proposed bond issue, which Worldview described as "perilous to shareholders".
Worldview then called for a separate EGM to table a resolution that proposes that Petroceltic should seek approval from shareholders for any material asset disposals which represent 25% or more of the company's revenues, profits or oil and gas reserves.
Petroceltic responded to Worldview's claims and said it found the requests for two separate EGM's as "misguided, unnecessary and a waste of the company's and shareholders' time and resources".
Petroceltic said it has taken legal advice about the first requisition that centres on concerns about the bond issue, and said "it does not believe that it is necessary to convene the requested EGM," adding that the requisition does not comply with the requirements of Irish company law or its articles of association.
Petroceltic also said earlier in July that it had not received the proposed requisition for the second EGM concerning asset disposals from Worldview, and has not released any further news concerning the second EGM since.
The rejection of the requisitions suggests Worldview may try to bring up its issues at the AGM Friday.
Petroceltic has previously said it would have to seek shareholder approval for any asset disposals that resulted in a "fundamental change of business", and therefore believes any request for another EGM by Worldview concerning the matter would be an "inappropriate interference".
Petroceltic shares were up 0.7% to 73.25 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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