PCI.L Regulatory News (PCI)

Petroceltic International plc ("Petroceltic" or the "Company")

AGM STATEMENT

1st June 2010

Speaking at the Annual General Meeting today, Petroceltic International plc's Chairman, Mr Robert Arnott said;

2009 was an active and highly successful year for Petroceltic. The Company successfully executed a major operated drilling programme, delivering a world class gas condensate discovery and reinforcing its reputation as a first class exploration and production organisation. The Company is now well positioned to add value across the portfolio, with an active and funded appraisal and exploration programme across all three of its geographical areas of focus, Italy, Algeria & Tunisia.

Our Algerian drilling programme yielded a major discovery

In Algeria, Petroceltic's five well drilling programme resulted in the discovery of the world class Ain Tsila gas condensate field, which was flow tested at commercial gas flow rates up to 34 mmscf/d. Data from the three wells drilled on the field to date suggest the presence of a single extensive and continuous gas accumulation. When taken with the three smaller discoveries already made, the potential gas resource in place in the Isarene Permit area is now estimated by Petroceltic at up to 11 trillion cubic feet. The delineation of the discovery areas has now been agreed with the Algerian authorities and a two year appraisal period, extending until April 2012, has also been agreed.

The ten month drilling programme commenced in May 2009 and was executed as planned with field operations completed without incident. This is a tribute to the experience, dedication and safety awareness of our Algerian team.

We are now looking to build on our success.

In Tunisia, the Company plans an exploration programme on the Ksar Hadada Permit in the third quarter of 2010. This programme will consist of two wells designed to test the Sidi Toui and Oryx prospects located in the Southern end of the permit. The Company's exploration operations in Tunisia are fully carried as a result of a farm-out agreement with a subsidiary of PetroAsian Energy Holdings Limited, a Hong Kong listed company.

In Italy, Petroceltic plans an appraisal well on the Elsa field located in its Central Adriatic B.R268.RG Permit. We plan to drill in the fourth quarter of 2010. The objective is to appraise a 1992 oil discovery well by drilling and testing the Elsa-2 well adjacent to it. Independent reports have attributed gross contingent recoverable resources in the Elsa field of up to 170 million barrels.

We announced this morning a 15% farmout to Orca Exploration Group, in exchange for Orca funding thirty per cent (30%) of the Elsa-2 well up to a maximum amount of US$12.1 million. We also announced an investment agreement with Gemini Oil & Gas Fund II, ("Gemini"). Gemini has agreed to provide US$14 million towards the funding for the Elsa-2 well in exchange for an entitlement to receive revenues derived from the oil and gas production from the Elsa field once it is brought into development. Post financing we will reduce our equity from 75% to 55% but raise US$26.1 million in total towards our well budget of US$36.7 million. In this market that is a significant achievement and the team should be congratulated for delivering such a deal.

In Algeria, the Company plans to commence an appraisal programme in the fourth quarter of 2010. Consisting of at least three wells, the objective is to further delineate the hydrocarbon volumes on the block, to determine the most likely recovery factors in respect of those hydrocarbons and optimise the development plans for the fields.

Our cash position is strong and we continue to build a high quality investor base

Our cash and cash equivalents at year end were US$33.7 million and we had no bank debt. This followed the successful share placing completed in June 2009, which raised gross proceeds of US$43.4 million for the Company. In April of this year, a further share placing raised additional gross funds of US$120.5 million, ensuring that the Company is healthily positioned to execute its forward drilling programme.

Coupled with the successful placing in January of this year of a 15.7% holding in the Company, formerly held by Iberdrola, S.A. the Board considers that the placings have resulted in a considerable strengthening of the Company's investor base with many 'Blue-Chip' institutions now occupying prominent positions on the Company's shareholder register.

With regard to our Board, a number of changes have taken place

John Craven stepped down from the Board in March 2009 after serving for some five years as Chief Executive. He was replaced as Chief Executive by Brian O'Cathain, who was previously the Company's Executive Chairman. Andy Bostock, formerly the senior non-executive director, was appointed temporarily as non-executive Chairman.

Further Board changes took place in January of this year, with the resignation of Christian Schaffalitzky and Pablo Fuentes-Cantillana as non-executive directors. Both Christian and Pablo have made valuable contributions to the Company during their tenure and they depart with the Board's gratitude and thanks. Christian's position was filled initially by my appointment as a non-executive director and latterly by Andy Bostock, when I recently assumed the role of Chairman.

We look forward to the future with confidence

In 2009 Petroceltic focused on delivering the Algerian drilling programme and high-grading the Italian and Tunisian opportunities. We are now poised for another exciting year of delivery. Well advanced and funded drilling programmes for 2010/11 will move the work programme from the exploration phase towards appraisal and development and this is likely to result in the Company being in a position to book its first commercial reserves in the near future.

Going forward we will continue to complement our organic growth programme by pursuing both corporate and asset acquisition opportunities. In particular we are looking for assets with early production potential coupled with exploration upside. The Company will remain vigilant for and ready to exploit any such opportunities.

Finally

I would like to thank Andy Bostock for the significant contribution he made to our Company during his tenure as Chairman and for his ongoing support in his new role as a Non Executive Director.

I would like to thank Petroceltic's shareholders for the strong support which they have shown for the Company during the last twelve months. We are optimistic that this support will be rewarded with further growth in shareholder value in the forthcoming year.

We would also like to thank Petroceltic's staff and contractors, our partners and other stakeholders for all their hard work and loyal support in bringing the Company to this promising stage in its development. We look forward to a year of further growth and progress across all of our assets.