PCI.L Regulatory News (PCI)

Dublin

13 February 2014

Petroceltic International Plc

Algeria Farmout Update

Petroceltic International plc (PCI.L) ("Petroceltic" or "the Company"), the independent oil and gas exploration company focussed on the Middle East, North Africa, Mediterranean and Black Sea regions, is pleased to announce the agreed sale of an 18.375% interest in the Isarene Production Sharing Contract ("PSC"), which includes the world class Ain Tsila gas condensate discovery, onshore Algeria, to Sonatrach, the Algerian National Company for Hydrocarbons.

The assignment has been effected by way of a sale and purchase agreement, under which Sonatrach will acquire an 18.375% interest in the Isarene PSC covering Blocks 228 and 229a. The amendment to the Isarene PSC (or 'Avenant') required to give effect to the transfer was signed by Sonatrach, Petroceltic and Enel at a ceremony in Algiers on 12 February 2014.

The terms of the agreement with Sonatrach, which are identical to those announced on 7 October 2013, provide for a consideration of up to a maximum amount of US $180 million. The consideration comprises US $20 million payment on completion of the transaction, a further US $140 million payment of Petroceltic's share of Isarene project development cost from the effective date of 4 July 2013 and contingent payments of up to US $20 million based on the achievement of certain project related milestones.

Sonatrach has acquired the interest by exercising its right of pre-emption in relation to a transaction with similar terms previously agreed between Petroceltic and another oil and gas company. Formal completion of this assignment remains subject only to final ratification by the Algerian Government Authorities. Upon completion of the transaction, Sonatrach will hold a 43.375% participating interest in the Isarene PSC, Petroceltic will hold 38.25% and Enel will hold 18.375%. Operations in the development phase will be undertaken by the Groupement Isarene, a joint venture between Sonatrach, Petroceltic and Enel.

Brian O'Cathain, Chief Executive of Petroceltic, commented:

"The second Isarene farm-out is a major commercial milestone. Petroceltic has had a positive and mutually beneficial relationship with Sonatrach throughout the exploration, appraisal and now development phases of the Isarene PSC. We believe that Sonatrach's decision to increase its interest as we commence development works is an indication of their confidence in the technical and financial strength of the project and the experience and capability of the team responsible for delivering it. We look forward to continuing to work with Sonatrach and Enel to deliver the Ain Tsila Project and maximise the value of this important national resource for Algeria."

Ends

For further information, please contact:

Brian O' Cathain /Tom Hickey, Petroceltic International Tel: +353 (1) 421 8300

Philip Dennis / Rollo Crichton-Stuart,

Pelham Bell Pottinger Tel: +44 (20) 7861 3919

Joe Murray / Joe Heron, Murray Consultants Tel: +353 (1) 498 0300

John Frain / Roland French, Davy Tel: +353 (1) 679 6363

Dr. Dermot Corcoran, Head of Exploration, Petroceltic International plc, and the qualified person as defined in the AIM Note for Mining and Oil and Gas Companies, June 2009, has reviewed and approved the technical information contained in this announcement. Dr. Corcoran has a B.Sc in Geology, a M.Sc. in Geophysics, and a Masters degree in Business Administration, all from the National University of Ireland, Galway. He also holds a Ph.D in Geology from Trinity College, Dublin. Dr. Corcoran has over 20 years experience in oil & gas exploration and production, and has previously worked at ExxonMobil, the Petrofina Group, and Statoil.

Notes to Editors:

Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on the Middle East, North Africa, Mediterranean and Black Sea regions, and listed on the London Stock Exchange's AIM Market and the Irish Stock Exchange's ESM Market. The Company has production, exploration and development assets in Algeria, Egypt, Bulgaria, Romania, the Kurdistan Region of Iraq Italy and Greece.