25th Mar 2015 10:25
LONDON (Alliance News) - Petroceltic International PLC on Wednesday said it has decided to withdraw from the Dinarta licence in Kurdistan, Iraq.
The company said it and operator Hess Middle East New Ventures have decided to stop drilling at the Shireen-1 well in the Dinarta licence. Hess has a 64% stake in the licence, with Petroceltic holding a 16% stake and the Kurdistan regional government holding the remaining 20%.
The well encountered significant operational challenges last year, and Petroceltic said the decision to withdraw from any further drilling was driven by the current low oil price environment, the lack of conclusive well results so far, and the limited time remaining on the production sharing contract for the licence.
"Petroceltic's strategy remains clearly focussed on delivering from its core producing and development assets, whilst maintaining balanced exposure to longer term exploration led growth wherever possible. In light of this, and the current oil price environment, the decision to withdraw from Kurdistan is the right one for the business," said Chief Executive Brian O'Cathain.
Petroceltic shares were down 2.4% to 124.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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