Exploration company Petroceltic has announced deals which will raise $26m to help fund the development of its Elsa-2 well off the coast of Italy.
Canadian-listed group Orca Exploration is to take a 15% stake in the Italian permit. In return, Orca will pay 30% of the drilling and completion costs for the proposed well up to a maximum of $11.5m.
Meanwhile, an investment fund which specialises in oil and gas is to provide $14m to help fund the well. In return, Petroceltic has agreed to provide Gemini Oil & Gas Fund with an entitlement to receive revenues from the oil and gas production from the Elsa field once it is brought into development.
Petroceltic says the full cost of the well, including testing, is expected to be around $37m. It retains a 55% stake. The company expects to start drilling on the well in the final three months of this year.
