Irish oil and gas explorer Petroceltic International said today that Spain's second-largest utility Iberdrola has purchased a 22.6 per cent stake in the company for €34.8 million ($55m).
Petroceltic said the deal would allow it to develop its oil and gas assets in North Africa, particularly in Algeria.
As part of the deal Iberdrola has an option to buy a 49 per cent stake in any existing Petroceltic assets for a further €34.8 million ($55m) and has also agreed not to sell its shareholding without Petroceltic's consent for a minimum of three years.
Brian O'Cathain, Petroceltic executive chairman said he was pleased to reach the agreement "all the more so at a time when there is limited access to financial markets for companies at our stage of development".
The company noted that high commodity prices and a worldwide decline in liquidity meant that funds for investment and exploration were now more readily available from industry than capital markets.
He added Petroceltic and Iberdrola were focused on growth in similar regions. During last year Petroceltic said it had focused on exploration and production in North Africa and Italy
This morning Petroceltic also reported a pre-tax loss of $2.5 million in the 12 months to December 31st last, down from a loss of $4.8 million the previous year.
At the end of last year the company retained cash and cash equivalents of $33.4 million, up from $19.4 million the previous year.
The company said the Kinsale gas fields yielded a net royalty of $550,000 in the year.
