Petroceltic International pulls out of Dinarta licence on falling crude prices

Oil explorer Petroceltic International has confirmed it will pull out of the Dinarta licence in Iraqi Kurdistan because of the decline in oil prices and disappointing well results.

The Irish group, which owns 16% of the joint venture alongside oil and gas producer Hess Corp, said it had agreed to withdraw from the area, citing the limited time remaining in the current period of the shared contract.

"This should not come as a huge surprise to the market although the size of the impairment may be higher than some would have estimated," analysts at Westhouse Securities said in a note on Wednesday.

The brokerage added that the oil company could see annual costs rise by approximately $7m (£4.7m) as it faces remedial and demobilisation work.

Petroceltic shares were down 3.94% to 122.00p at 11:38 on Wednesday.