Petroceltic International has agreed a farm-in deal with Vega Oil to increase its interest in the offshore Italian permit B.R268.RG from 40% to 70%. The permit includes the Elsa discovery.
Petroceltic will also assume operatorship of the permit and will now pay 100% of the drilling and completion costs for the proposed Elsa-2 well.
The company's CEO, Brian O'Cathain, said the agreement demonstrates Petroceltic's commitment to Italy and to the Central Adriatic as a core area for the company.
'We now believe Petroceltic is well placed to attract a new partner in early 2010 to exploit the Elsa discovery and the additional potential in this exciting new play fairway, in which Petroceltic holds ten exploration licences at 100% working interest,' he added.
