Irish oil and gas company Petroceltic said today it aims to raise $25 million in a share sale to fund exploration and has appointed a drilling contractor in Algeria.
Petroceltic said the new funding and the award of the drilling contract gives the company "sprint capacity" to complete its aggressive 2006 drilling programme which includes the two wells in Algeria and one well off the Irish coast.
The company has chosen drilling contractor Schlumberger to operate its two wells in Algeria's Illizi Basin.
Schlumberger recently struck oil in a field operated by Rosneft of Russia which is next to Petroceltic's block and shares similar geological features to the Petroceltic field.
Plans are already under way to increase the level of the company's drilling activity during 2006 and 2007 which may include drilling additional wells in Algeria, offshore Italy and re-entering and testing the Sidi Toui 3 in Tunisia.
The placing of 102,000 new shares at 14p on London's Aim market will be underwritten by RAB Capital .
