Petroceltic gets boost after Eni Med gas find

Caitlin Morrison
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SHARES in oil firm Petroceltic jumped yesterday, on hopes that a new natural gas discovery off the coast of Egypt could ramp up interest in the Irish group’s holdings in the region.

The Dublin-based company closed trading up by 14.02 per cent.

Over the bank holiday, Italy’s Eni announced the discovery of what it called a “supergiant” gas field off Egypt’s Mediterranean shore in the Shorouk Concession, less than 5km from Petroceltic’s acreage.

Petroceltic holds a 50 per cent share in the North Thekah and Port Fouad blocks in the region.

“The discovery bodes well for the prospectivity of the wider region where Petroceltic holds two blocks,” said David Farrell at Macquarie.

Analysts at Numis said: “While it is difficult to quantify the impact, the news is clearly encouraging for Petroceltic.”

Meanwhile, an analyst note from Davy stated: “Although current markets are discounting much lower oil prices and the exceptionally tough backdrop for E&P stocks, the value of the Egyptian offshore blocks is almost certainly not being reflected in the share price.”

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