Petroceltic Shares Surge on Possible Offer

By John Lee.

Shares in Irish-based Petroceltic International have risen more than 20 percent on Monday following the announcement of that the company is in detailed discussions regarding a possible offer to be made by Dragon Oil.

With the support of the Board and management team of Petroceltic, Dragon Oil has completed an extensive confirmatory due diligence exercise and has submitted to the Board of Petroceltic proposed offer terms of 230 pence sterling in cash per Petroceltic share.

The shares were trading at 217 pence sterling late Monday morning, up from a closing price of 178.5 pence on Friday.

Petroceltic added:

"There can be no certainty that any offer will be made or as to the terms of any offer. Shareholders are advised to take no action at this time".

Following disappointing results from its Shakrok licence in Iraqi Kurdistan, Petroceltic shifted the focus of its Iraqi activities to Dinarta.

(Sources: Petroceltic, Dragon Oil, Yahoo!)

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