A number of UK financial institutions have taken a 10 per cent stake in Irish exploration group, Petroceltic International (formerly Ennex), following a series of trades in the London-listed stock earlier this week.
Around 31 million Petroceltic shares changed hands for a total of £465,000 sterling (€669,000) or 1.5p per share last Wednesday. The board told shareholders at the company's annual general meeting yesterday that it had not at that point received formal notification from either the sellers or the buyers of the stock.
However, The Irish Times has confirmed that the buyer was City of London corporate finance house Evolution (formerly Evolution Beeson Gregory), which said last night that it was acting on behalf of a number of financial institutions.
It is understood the seller was a Canadian financier, Endeavour. The Canadian shareholder cashed in as it specialises in mining stocks, and Ennex has shifted its focus from zinc and other mineral exploration to oil and gas.
In keeping with the change of focus, shareholders at the meeting voted to rename Ennex as Petroceltic International. At the same time, the group announced two deals in the oil and gas sector that managing director, Mr John Craven, described as "potential company-makers".
It has taken an option to buy 38 per cent of three part-blocks in the Celtic Sea, dubbed the Old Head field, from Island Expro. The blocks are next to the productive Kinsale gas field. Island Expro has the same shareholders as Island Group, a partner in the recently drilled Seven Heads field, which is likely to produce 60 million cubic feet of gas a day when it comes on stream next month.
Mr Craven told the meeting that the Old Head field held a potential 800 billion cubic feet of gas. Petroceltic has an existing royalty over gas from the Kinsale field, which is generating €344,000 a year for the group.
Mr Craven said Petroceltic had eight months to take up the option, for which it has agreed to pay £164,128 in cash and shares. If exploration drilling begins, it will pay £1 million of the estimated £4.5 million needed to complete that exercise.
In Africa, it has taken an option to buy the interests of UK company Derwent Resources and Italian firm GAIA, in a number of oil exploration blocks in Tunisia, Libya, Algeria and Mali. In return, GAIA and Derwent will each receive 4.5 million new Petroceltic shares, and will get a 2.5 per cent royalty from any oil produced.
