Exploration company Petroceltic has completed the sale of an 18.375% interest in the Isarene PSC to Sonatrach, the national oil and gas company of Algeria.
The farmout deal is for a maximum amount of $180m split into a $20m cash payment now, a further $140m on costs incurred from last July and a final contingent payment of $20m.
After the deal is concluded, Petroceltic will have a 38.25% share in the field. Sonatrach has a 43.375% interest, and Enel maintains its 18.375% interest.
Petroceltic remains the operator of the license.
"Petroceltic has had a positive and mutually beneficial relationship with Sonatrach throughout the exploration, appraisal and now development phases of the Isarene PSC," commented the company's chief executive Brian O'Cathain.
"The formal ratification of this agreement is a critical step in the overall funding plan for this development project. As development operations ramp-up, we look forward to continuing to work with Sonatrach and Enel to deliver the Ain Tsila Project and to maximise the value of this important national resource for Algeria," he added.