Petroceltic Cuts Production Forecast Amid Egyptian Unrest

Petroceltic, the oil and gas explorer, cut its production forecast for the full year due to lower than expected output in Egypt.

The independent, which focuses on countries in the Middle East, north Africa and the Black Sea, said it expected output to be between 24,500 barrels of oil equivalent per day (boe/day) and 25,000 boe/day in the year ending December 31. Petroceltic said in January it expected production in 2013 to be between 25,000 boe/day and 27,000 boe/day. Current output is about 26,000 boe/day, it said.

“Although there has been no consistent or ongoing disruption to the business, a number of separate factors caused Egyptian production to be slightly below anticipated levels in the first half,” Petroceltic said in a statement accompanying its interim results for the six months to June 30.

Egypt accounted for more than 50 per cent of the company’s revenue in the first six months. Petroceltic said despite the unrest in Egypt it had continued “to receive regular monthly payments from Egyptian General Petroleum Corporation throughout 2013 to date”.

The company announced its pre-tax loss had widened to $5.29m in the first six months, from $3.2m a year earlier. Revenue rose to $104m from $291,000 a year earlier. However, the comparison with 2012 is skewed as this is the first set of interim results to incorporate the producing and other interests acquired as part of Petroceltic’s merger with Melrose Resources last year.

Petroceltic shares were down 1.66 per cent to 148.5p at lunchtime in London.

Source: The Financial Times