2010-03-10-2009-12-17

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
0MM
Description

To acquire addtl. 30% WI in Elsa discovery offshore Italy.

Petroceltic International Plc, Dublin, (London AIM: PCI) has signed a farm-in agreement with Vega Oil SpA, a subsidiary of Cygam Energy Inc., Calgary, (Toronto Venture: CYG) for a 30% interest in a permit located offshore Italy.

The agreement increases Petroceltic's interest in the B.R268.RG permit, which includes the Elsa discovery, to 70%. In exchange, Petroceltic has agreed to pay all of the drilling and completion costs for the proposed Elsa-2 well. Elsa-1 was drilled by Eni SpA in 1992.

In September 2009, DeGolyer and MacNaughton Canada Ltd. estimated that the Elsa structure included in the permit contains 104.23 million barrels of oil and 31.49 billion cubic feet of gas.

Petroceltic chief executive Brian O'Cathain says, "We now believe Petroceltic is well placed to attract a new partner in early 2010 to exploit the Elsa discovery and the additional potential in this exciting new play fairway, in which Petroceltic holds 10 exploration licenses at 100% working interest."