2011 was a great year for PCI. You wouldn’t know it by looking at the sp but that’s more a story of 2011′s broader debt/economic woes than any company specific operational progress.
For a company that has already demonstrated the value of their asset through the drill bit but also via the farm out process – it’s astonishing that PCI is still valued at just a fraction of its overall asset worth. However, the markets tend to take a heavily discounted view these days when FDP’s and funding are uncertainties.
PetroCeltic have said that they are undergoing a second farm out process as well as in advanced talks to confirm the commercial project status with the Algerian Government/Sonatrach.
PCI had hoped to confirm details on the FDP by end of March but this date now appears to have been pushed out a further 3 months to July 24th deadline. Shareholders will be pleased that a firm deadline has been set but equally disappointed that it could take another 12 weeks to complete.
Plans on Italy look to be moving in the right direction and progress in Kurdistan on Seismics is encouraging.
Whilst it looks like a quiet first half to 2012 for PCI, the second half looks very busy indeed.
The stock may be suffering from the short term trading attitude that is prevalent in today’s climate but this should change once the FDP and MOU’s are agreed – and by the time farm out’s are sorted, PCI should have strong momentum and the valuation gap between sp and assets should be closing.
26(th) April 2012, Petroceltic International plc
Preliminary Results Announcement
Results for the twelve months ended 31 December 2011.
Petroceltic International plc (“Petroceltic” or “the Company”), the independent oil & gas exploration company focussed on the Middle East-North Africa (“MENA”) and Mediterranean region today announces its results for the year ended 31 December 2011.
– Successful six well appraisal drilling campaign in Algeria completed on time and under budget.
– Petroceltic estimate of most likely gas resource in place in the Isarene permit area, Algeria, increased by c.70 per cent to 10.3 TCF.
– Enel introduced to the Isarene permit as 18.375 per cent partner. Over US$100 million received to date.
– Substantial progress on finalising with Sonatrach a plan of development incorporating gross recoverable contingent resources of 2.2 TCF of gas and 180 million barrels of condensate and LPG recoverable contingent resources over life of field.
– Sonatrach, Petroceltic and Enel agree to a three month period from 24(th) April 2012 to conclude the Final Discovery Report and submission of the Declaration of Commerciality for the field.
-- Entry into two highly prospective licences in the Kurdistan Region of Iraq.
– Preparation for drilling of high value Carpignano Sesia prospect (formerly Rovasenda) in Italy.
-- Strengthened investor base following successful US$60 million share placing in May 2011.
– Funded and well placed to continue to develop and grow the business. Net debt position of US$15 million at year end and cash at 31 March 2012 is US$64 million with no debt.
Robert Arnott, Chairman of Petroceltic commented:
“Petroceltic delivered on all of its key targets for 2011. The Isarene farm-out deal was approved by the Algerian authorities, the Company completed its appraisal campaign on time and under budget, achieving significant success, the plan of development was submitted to Sonatrach on time, and the portfolio expanded through the addition of two highly prospective licences in the Kurdistan Region of Iraq.
The coming year will see the maturation of our Algerian asset towards development sanction, the booking of commercial reserves, and accelerated activity on some exciting exploration in Italy and Kurdistan. In 2012, the Company is well positioned, operationally and financially, to take advantage of opportunities to expand its portfolio”.
Full results can be found here