Petroceltic International (LON:PCI) has now sold an 18.375 percent stake in the Isarene production sharing contract (PSC) to ENEL Trade.
It now expects to receive over US$55 million in the next 30 days - as the first payment under the deal that was struck last week.
On Thursday 28 April, the last trading day before the long bank holiday weekend - Petroceltic shares shot up over 15 percent as it reported the long awaited farm out deal for the Algerian asset.
ENEL, Europe’s second largest utility group, will pay up to US$36.75 million towards costs already incurred in the project, and up to $75 million depending on the volume of recoverable reserves from the field.
Petroceltic will remain the operator of the permit with 56.625 percent, while the Algerian state oil company - Sonatrach - will hold the remaining 25 percent.
"We are delighted to have concluded the signing of the Amendment to the PSC in an efficient and timely fashion with the active support of Sonatrach and ENEL,” said Petroceltic chief executive Brian O’Cathain.
“Petroceltic has already commenced planning for the enlargement of the Isarene appraisal campaign and introduction of our new partner.
“We look forward to the results from the continuation of this drilling campaign and are confident that ENEL's input will also make a significant contribution to pre-development and gas commercialisation planning when this commences in the months ahead".
Last week Davy analyst Caren Crowley said that the agreement looks a good deal for all parties involved and Petroceltic should trade up on this news. The analyst reckons Petroceltic's Algerian interests are now worth around 22.5 pence a share, compared to a previous valuation of 20.6 pence per share.