Dublin, Ireland-headquartered Petroceltic International has announced that it has completed the sale of three exploration licences in Egypt to its joint venture partner Edison International.
In a statement released on February 18, the company said that it had agreed to sell its interests in the deep water North Thekah licence and the North Port Fouad and South Idku exploration licenses to Edison for a cash consideration of $9.5mn, after working capital adjustments of about $5.8mn. Though the company did not list its percentages in the three licences in its statement, it previously held a 75% interest in the onshore South Idku concession, a 50% interest in the North Thekah licence, and a 50% interest in the North Port Fouad licence.
Edison is currently the operator of the North Thekah and North Port Fouad licences. It was a joint venture partner in the South Idku licence.
The sale has been completed following government approval and the waiver of pre-emption rights held by the Egyptian Natural Gas Holding Company (EGAS).
The company said that the sale was undertaken as part of its initiative to focus on other operations.
“This sale continues our strategic initiative, announced in early 2015, to focus the company on the Ain Tsila development in Algeria,” CEO Brian O?Cathain said.
The sale could open Edison up to even greater gas potential in Egypt. According to previous operations information published by Petroceltic, the North Thekah block is thought to contain an extension of the Levantine basin exploration play.
It has been previously rumoured that Edison has made a substantial discovery in Egypt, according to a former Israeli diplomat. However, Edison has yet to confirm or deny the statement, which was made in December 2015.
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