AGM Statement
October 17 2003 - 7:28AM
UK Regulatory
RNS Number:0231R
Ennex International PLC
17 October 2003
Ennex International plc
Ennex International plc Changes Name to Petroceltic International plc and
Announces Two Oil and Gas Exploration Deals in North Africa and Celtic Sea
Dublin, Friday, 17 October, 2003: At its Annual General Meeting held in Dublin
today Petroceltic International plc (formerly Ennex International plc)
("Petroceltic" or the "Company") announced the signing of two deals in line with
its strategy of moving into the oil and gas sector.
* Petroceltic announced that today it signed an option agreement with the
originators of the Seven Heads gas project to acquire a 38% interest in a
group of recently awarded blocks adjacent to the Kinsale Head Gas Field in
the Celtic Sea.
* An application has been filed for a licence over a large area (7000km2) of
onshore Tunisia. Oil has previously been found in this area and Petroceltic
has through its assessment of the acreage identified substantial oil and gas
potential.
"We are very excited to have concluded these two deals either of which has the
potential to be a company maker," commented John Craven, the recently appointed
Managing Director of the Company.
"The gas potential of the Celtic Sea has recently been recognised and the team
(The Island Group) behind the Seven Heads Gas Field have been using the same
evaluation techniques over other areas. As a result of this work they have
identified large potentially gas bearing structures adjacent to and geologically
similar to the Kinsale Gas Field. The Island Group has now received a licence
over this area and Petroceltic is pleased to have negotiated an eight month
option to acquire a substantial interest in this licence.
"In North Africa negotiations for a licence over a substantial onshore area in
Tunisia are at an advanced stage and we expect to make further announcements on
this subject over the coming weeks. The identified structure is large and oil
has previously been found in the block. Plans are underway to drill a well next
year on this feature and as the target horizons are shallow, exploration
expenditure will be modest making this a low cost high reward opportunity.
"The prolific hydrocarbon basins of North Africa extend across the countries of
Libya, Tunisia, and Algeria and host many giant oil and gas fields with further
significant potential. Areas such as Mali have hardly been explored yet have
similar petroleum systems. In addition we are in discussions with relevant
authorities regarding other opportunities in this region."
The African agreement has been signed with GA.I.A srl ("GAIA") of Italy and
Derwent Resources Limited ("Derwent") of the UK to acquire both companies'
interests in a portfolio of significant hydrocarbon appraisal and exploration
opportunities in Tunisia, Libya, Algeria and Mali.
An application has been filed by the three companies over a 7000km2 area of
Tunisia where oil has already been discovered and large structures have been
identified. Plans are underway to drill a well next year on this large
structure. The principal exploration and fiscal terms of a Production Sharing
Contract (PSC) over this area have been agreed with ETAP, the Tunisian State Oil
Company. Petroceltic expects to make further announcements on this subject over
the coming weeks.
Petroceltic is in discussions with relevant authorities regarding other
opportunities in this region.
On the successful agreement of terms for the Tunisian PSC application GAIA and
Derwent will each receive 4.5 million new Petroceltic shares. GAIA and Derwent
will each be entitled to receive a 2.5% carry after payout over each licence
granted in the area of interest.
GAIA and Derwent through their principals Roberto Bencini and Stephen Staley
have a wealth of oil and gas experience and knowledge in the region including
involvement with the teams that made several large commercial discoveries in
Libya and Algeria in similar geological settings to the area of interest. The
companies, Roberto Bencini's and Stephen Staley's database, intellectual
property and expertise will be available exclusively to Petroceltic to develop
the opportunities in the areas of interest identified in the agreement.
Petroceltic said that it plans to use this database and expertise to make
further applications and acquisitions in the area thus fast-tracking the
company's North African oil and gas interests.
The Celtic Sea option agreement that has been signed with Island Expro Limited,
Celtex Exploration Services Limited, Bexley Investments Limited and Carob
Limited (The Island Group) is over part blocks 49/17, 49/22 and 49/23 in the
Celtic Sea offshore Ireland.
The Island Group includes the same people that were responsible for the
successful re-evaluation of the Seven Heads field which led subsequently to its
successful development. They have expert technical knowledge of the Celtic Sea
area. The Celtic Sea now has 4/5 gas fields producing or about to produce and is
regarded in the industry as a high reward low risk exploration area for gas.
The consideration is Stg#82,609 towards the project budget during the option
period to 23 July, 2004. Petroceltic will also pay the Island Group Stg#82,609
through the issue of new shares in the Company. On exercise of the option and
the decision to drill Petroceltic will pay Stg#1million towards The Island
Group's drilling costs of an exploration well in the blocks. Final agreements
are subject to ministerial approval.
Notes to Editors:
1. Petroceltic International plc is an independent oil and gas company quoted on
the Alternative Investment Market of the London Stock Exchange.
2. The Company has recently raised approximately $1.8 million through a recently
announced share placing and the disposal of investment interests.
3. Petroceltic is now focused on growth in the oil & gas sector through
high-impact international exploration and carefully chosen investment in low
risk near term production and appraisal projects.
4. The company receives royalties from the Kinsale Gas Field, offshore Republic
of Ireland, of approximately $400,000 per annum.
For further information:
Brian Cusack Executive Chairman
Tel: + 353 87 2575476
Hugh McCutcheon Davy Stockbrokers
Tel: + 353 1 679 63 63
Public Relations:
Dublin: Ronnie Simpson
Tel: + 353 1 2605300
London: Simon Rothschild
Tel: + 44 207 4444140
17 October, 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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