Enel has agreed to acquire the stake in the PSC for the Isarene perimeter (Blocks 228 and 229a) and will pay up to $36.75m towards costs already incurred in the project, and up to $75m depending on the volume of recoverable reserves.
The PSC was signed between Petroceltic and the Algerian National Company for Hydrocarbons (Sonatrach) in April 2005.
As per the terms of the agreement, Enel has agreed to pay up to $ 36.75m to Petroceltic, which equates to 24.5% of all back costs incurred from signing of the PSC in 2005 until the end of the exploration period in April 2010.
The company will also fund 49% of the cost of the first six appraisal wells in an enlarged Isarene appraisal campaign (including AT-4, which has been completed and the second well of the campaign, AT-5, currently drilling the horizontal section) and of a contingent additional well, which costs are capped, in aggregate, at $ 145m.
Petroceltic will remain the operator of the permit with a 56.625% interest while the state oil company, Sonatrach, will hold the remaining 25%.
