Petroceltic International plc (AIM: PCI) ("Petroceltic" or "the Company"), the oil and gas exploration, development and production company focused on North Africa, the Mediterranean and Black Sea regions, today provides an operational update and review of its 2013 production outlook and exploration and development work programme.
2012 production in-line with guidance; 2013 forecast production range of 25.0 to 27.0 Mboepd
Ten firm wells planned over the course of 2013:
Five Exploration wells across Egypt, Bulgaria, Romania and Kurdistan
Five Development wells including completion of the Kaliakra discovery in Bulgaria and four development wells in Egypt
World class Ain Tsila project moves into 30 year development and exploitation phase post final Algerian approval in December
Upgrade of production facilities on West Dikirnis and West Khilala fields in Egypt on schedule
North Tarif-1 Exploration well in Egypt plugged and abandoned
Brian O'Cathain , Chief Executive of Petroceltic commented:
"Today's announcement clearly demonstrates the scale and diversity of the Petroceltic business following the merger with Melrose Resources in October 2012. Our business is now generating strong cash flows, undertaking active exploration in five countries and moving into development of the world class Ain Tsila gas-condensate project. We anticipate an exciting year ahead, with a sustained exploration drilling program which offers exposure to a diversified portfolio of prospects including the company's first well in Kurdistan."
The Company will hold an Investor day in London on 11 February. Further information will be circulated closer to the date and all presentations will be available on the Company's website www.petroceltic.com.
Business Performance and Production Outlook
The merger of Petroceltic and Melrose Resources Plc was completed in October 2012 and the subsequent integration process has gone smoothly with productive sharing of knowledge and expertise. In particular, the complimentary production, development and exploration skills of both organisations have significantly enhanced the operating, technical and financial capabilities of the enlarged business.
Average 2012 production from the Company's interests in Egypt and Bulgaria was in line with prior guidance at approximately 28.5 Mboepd on a working interest basis. The average daily working interest production rate for 2013 is expected to be in the range of 25.0 to 27.0 Mboepd comprising approximately 85 percent gas and 15 percent liquids. Egypt and Bulgaria will contribute 80 per cent and 20 per cent of the total production volume respectively.
Throughout 2012 the Company received regular payments from production in accordance with agreed schedules in both Egypt and Bulgaria and the level of receivables in Egypt has now reduced by approximately one third from its historic peak. These consistently strong cash flows enabled year end net debt to be reduced to approximately US$210 million. The business remains well funded and Petroceltic has already commenced planning for the near term refinancing of its US$300 million bridge facility.
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