Petroceltic International gets takeover bid from Dragon Oil

Oil & gas explorer Petroceltic International has received a £491.6m takeover approach from rival Dragon Oil.

Petroceltic, which has exploration licenses in Algeria, Tunisia and Italy and production activities off Kinsale in Ireland, said Dragon Oil had proposed to offer 230p per Petroceltic share.

London and Dublin-listed Dragon runs oilfields in the Cheleken contract area in the Caspian Sea off the coast of Turkmenistan.

Petroceltic has told Dragon it would recommend its offer if Dragon gets the required approval from its own shareholders.

Petroceltic said in a statement: "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.

"Petroceltic shareholders will be kept informed of relevant developments and a further announcement will be made as appropriate."

Petroceltic shares rose 39.25p to 217.75p in early trading in London while Dragon Oil's stock was flat at 574p.