Petroceltic senior bank facility repayment waiver extended to Feb. 19

By Mark Reccek

Bethlehem, Pa., Feb. 8 – Petroceltic International plc’s waiver of repayments under its senior bank facility was extended to Feb. 19 from Jan. 29, according to a news release.

The company said its lenders also indicated their willingness to consider further waivers to continue Petroceltic’s strategic review process, the release said.

As previously reported, Petroceltic’s board of directors initiated a formal strategic review of the company’s business and assets in December to consider all options to maximize value for shareholders and stakeholders.

In its 2014 annual financial results and 2015 half-year results, the company said a combination of adjustments to reserves arising from a 2014 “competent person’s report,” the drop in oil prices and a reduction in capital investment programs in relation to the group’s assets in Egypt and Bulgaria impacted availability under the group’s senior bank facility during 2015.

Petroceltic said these circumstances led to the requirement to make significant repayments, which the group has not been in a position to do. The group has also breached other covenants of the facility, which is secured by substantially all its assets, the release said.

Petroceltic said the group was exploring a number of debt and portfolio management initiatives to secure additional financing, create liquidity and/or reduce financial commitments with a variety of counterparties, including existing shareholders, license partners and other parties.

Absent new funding being made available, the company said that the group does not have certainty on liquidity beyond early January.

Petroceltic is a Dublin-based oil and gas exploration and production company focused on the North Africa, Mediterranean and Black Sea regions.

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