Troubled oil and gas explorer Petroceltic, which owes more than $200 million (€179 million), has been given a two-week reprieve from its lenders.

In a statement to the Irish Stock Exchange this morning, the company said it had received a further waiver of repayments under its senior bank facility until March 4th.

Meanwhile, the exploration company has announced the start of development drilling on the Ain Tsila gas field in Algeria.

The company said the newly built rig arrived on the Isarene permit during November 2015, was assembled successfully on site, and has now passed acceptance testing.

Petroceltic holds a 38.25 per cent interest, Sonatrach a 43.375 per cent interest, and Enel an 18.375 per cent interest in the Isarene permit.

Petroceltic chief executive Brian O’Cathain said the explorer was collaborating with partners to reduce overall development risk and enhance long term-field recovery and value.

“We are delighted to start development drilling on Ain Tsila and look forward to building on the success of earlier wells in the highly productive northern part of the field. Ain Tsila is a world-class asset and the main focus of our business,” he said.