Enel Trade Takes Stake In Algeria Contact

Bought 18.375% WI in Isarene contract south of Illizi Basin in SE Algeria.

Enel Trade SpA, Rome, (Borsa Italiana: ENEL) has acquired an 18.375% interest in the Isarene production-sharing contract in Algeria from Petroceltic International Plc, Dublin, (London Aim: PCI) for up to US$180 million.

The deal includes US$36.75 million to fund 24.5% of all back costs incurred from signing of the contract in 2005 until the end of the exploration period in April 2010. Enel also committed to fund 49% of the cost of the recently completed six-well Isarene appraisal drilling campaign, which costs are capped, in aggregate, at US$145 million.

Petroceltic would also receive a contingent cash consideration of up to a maximum of $75 million, which would be determined by a number of factors based on the results of the appraisal program, the overall level of reserves and the production profile.

The Isarene permit area is in the south of the Illizi Basin in south-eastern Algeria. The original permit area covered more than 10,000 square kilometers.

Petroceltic remains operator and now holds a 56.625 % interest. Sonatrach maintains its 25% interest.