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North Africa: Dragon bids for Petroceltic

Dragon Oil has approached Petroceltic with a cash offer of 230p/share. The Dubai-based company has been looking to get into North Africa for a long time and has a $2bn cash pile to spend. Buying Petroceltic would soak up about $1bn of that, while the remainder would enable it to cover the company’s 38.25% equity share in development of the Ain Tsila gas condensate field through to first gas in 2018. Sonatrach has been carrying Petroceltic’s costs over the past year, but the carry runs out in 2015, and the Irish company would otherwise be obliged to turn to the markets for more funds.

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