Oil and gas exploration company Petroceltic said it made “significant” progress on an operational and financing level as it strengthened its asset portfolio and decreased losses over the past year.

The company, which is focused on the Middle East, North Africa and the Mediterranean region, said the Ain Tsila appraisal programme, the farm-out to Enel and entry into the Kurdistan region of Iraq had helped bolster its position.

Publishing its interim results for the first six months of 2011, the group said it had a current cash balance of $84 million and no debt.

Petroceltic raised $60 million in funding with a successful placing in May.

During the six-month period, the company signed up Italian utility firm Enel as a minority partner for the Isarene licence in Algeria, farming out an 18.375 per cent stake. The agreement must be approved by the Algerian government but once this takes place, Petroceltic will receive an initial payment of more than $74 million within 30 days.

The company narrowed losses to $4.1 million (€2.85 million) from $4.9 million a yer earlier, mainly as a result of exchange rate movements.

The group also highlighted its enlarged Algeria appraisal programme which is currently underway. More results are due in September.

It also transferred operatorship of the Carisio permit in Western Po Valley to ENI during the first half of the year.

“Algerian drilling operations will see at least three further well results and four test results completed in the next six months, and our objective is to maintain and exploit the momentum created in this world class discovery,” said chief executive Brian O’Cathain.

“Although stock market conditions in recent months have presented challenges to all companies, Petroceltic has the team, the assets and the funding to deliver our ambitious growth objectives and create significant value for our shareholders.”