Edison Initiates Coverage on Petroceltic

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Jul 07, 2015, 10:19 ET

LONDON, July 7, 2015 /PRNewswire/ --

Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Petroceltic

Highlights of the analysis on Petroceltic by Edison's oil & gas analysts Will Forbes, Kim Fustier, Elaine Reynolds, Peter Lynch and Ian McLelland include:

Petroceltic (PCI) is an AIM and Dublin-listed E&P with assets in Egypt, Bulgaria and Algeria. Its flagship project, the Ain Tsila gas/condensate project in Algeria, is approaching FID in late 2015 and should start up in Q418. PCI is also exploring in Egypt and Italy.

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Our core NAV is 125p/share, including Egypt, Bulgaria and Ain Tsila Phase 1. Hence at the current share price, the market is giving PCI no credit for Ain Tsila execution and upside and for exploration in Egypt/Italy. Our RENAV is 154p/share. As the project progresses and first gas nears, its value should grow, supporting a RENAV CAGR of c 16% out to 2020. We estimate PCI requires c $580m of debt funding to get through the heavy spend phase in H216-18 until first gas. Beyond the recently announced $175m secured bond issue, we expect it to look to a mix of corporate bonds, project finance and RBLs. Progress on refinancing over the next 12 months and on strategic issues with Worldview would be a positive catalyst.

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For more information please contact:

Will Forbes, Edison Investment Research , +44(0)20-3077-5749

Kim Fustier, Edison Investment Research, +44(0)20-3077-5741

[email protected]

SOURCE Edison Investment Research