Petroceltic Shares Suspended

Irish explorer Petroceltic on March 7 asked for trading in its shares to be suspended on London’s Alternative Investment Market (AIM) and Dublin’s ESM exchange, because of uncertainties arising from legal action by one of its shareholders, Worldview. Trading in them has been suspended.

Worldview – which owns 29.6% of Petroceltic – petitioned Ireland’s High Court on March 4 to appoint an examiner to Petroceltic International plc, Petroceltic Investments Limited and Petroceltic Ain Tsila Limited and to admit the three companies to the protection of the court. A full hearing of the petition has been adjourned until 4 April.

Petroceltic said on March 7 that the court did not appoint an interim examiner but has granted the full protection of the examinership process to the petition companies; the company is taking legal advice in relation to the petition.

On February 26 Worldview made a cash offer of £0.03 per share for Petroceltic’s entire stock. On March 3 Petroceltic advised its shareholders to take no action in relation to the takeover bid. The next day it substantially agreed with its senior lenders the commercial terms and conditions of a further waiver of payments to March 18 2016, but said the waiver could not be concluded once Worldview had presented its petition.

Petroceltic began developing the Ain Tsila gas condensate field in Algeria last month, with the expectation of producing first gas in 2019. Its 38.25% stake as operator in the relevant Isarene production sharing contract is its most valuable asset. Partners are Algerian state Sonatrach 43.375% and Italy’s Enel 18.375%.

Mark Smedley