Irish exploration company Petroceltic has reported an operating profit helped by the producing assets of recently acquired Melrose Resources.

Petroceltic merged with British exploration firm Melrose last year in a bid to strengthen its operations in North Africa and the Black Sea.

It banks on Melrose's producing assets in Egypt and Bulgaria until its own assets in Algeria start production in 2017.

The company today reported an operating profit of $4.0 million before exploration costs in the year to the end of December compared with a loss of $6.4 million a year earlier.

Consolidation of Melrose results from October increased revenues from $0.42 million to $59.4 million, the company said.

Once-off merger related costs, exploration write-offs and finance expenses resulted in a pre-tax loss of $6.7 million compared with $8.2 million in the previous year.

The company's net debt in 2012 stood at $209 million

Full-year production was equivalent to 28,400 barrels of oil equivalent per day (boepd).

The company, which focuses on the Middle East and North Africa region, the Mediterranean basin and the Black Sea, had said in January that it expects 2013 production to be 25,000 to 27,000 boepd.

Petroceltic shares were trading up 3.17 per cent at 6.5 pence earlier on the London Stock Exchange.

Chairman Robert Adair said: "Petroceltic has fundamentally transformed its business over the past year.

“The merger with Melrose in October 2012 has created a significant, regionally focussed, full cycle, independent oil and gas company. “

This combination has produced a company with stable finances and excellent growth prospects.”