SHARE
Petroceltic International CEO Brian O’Cathain. Image courtesy of ProactiveInvestors Stocktube/Youtube.

Petroceltic International dropped its 2015 production forecast Thursday by about 20 percent from last year’s guidance.

The UK based upstream expects its 2015 production to range from 16.5 to 18.5 million barrels of oil equivalent, down from its 2014 top end guidance of 22.6 million boepd.

CEO Brian O’Cathain said while the current volatility in oil markets is challenging it will have “a limited impact on our daily business, as most of our production is fixed price gas in Egypt or Bulgarian gas priced on a long time lag.”

The company budgeted $175 million for its 2015 capital program with $80 million being carried under the terms of its Algeria farm-out.

Petroceltic reported “significant progress” on its Ain Tsila project in Algeria with front end engineering and design and gas sales contracts for the project being awarded last year.

The company is reviewing its forward options for its Shireen exploration well in Kurdistan following operational delays.

Petroceltic also said it will kick off a restructuring plan “to enhance focus on core assets, most notably Algeria and Egypt.”

Further details about the company’s restructuring plan have not been disclosed.

“During 2015, we will be focusing strongly on delivery from our core producing assets and de-emphasizing certain exploration initiatives, while maintaining exposure to long term growth wherever possible,” O’Cathain said.