PCI.L Regulatory News (PCI)

PETROCELTIC INTERNATIONAL PLC

Tunisian Well Spud

Petroceltic International plc (PCI.L) ("Petroceltic" or "the Company"), the independent oil & gas exploration company focussed on the Middle East, North Africa and Mediterranean is pleased to announce the commencement of drilling operations for the exploration well Oryx-1 on the Ksar Hadada Permit in Tunisia. Petroceltic holds a 27.03% interest and is the operator of the permit which covers an area of 5,608 square kilometres.

The Oryx-1 well is the first of a two well drilling programme that forms part of the work programme agreed when PetroAsian Energy Holdings Limited farmed into the permit. PetroAsian is committed to finance all of the joint venture's work commitments in the current programme, including the drilling of the two wells, up to US$14.5 million.

The well is being drilled into an Ordovician Bir Ben Tartar Formation oil target and is planned to reach a vertical target depth of a minimum of 1,165 metres. It is envisaged that the Oryx-1 well will take approximately three weeks to drill at a dry hole cost of approximately US$ 4.35 million. Independent expert assessment by Blackwatch Petroleum Services Ltd., estimates that the most likely (P50) prospective resources in the Oryx target of 25MMbbls oil, with a 34% chance of success to the exploration well.

On completion of the Oryx-1 well, the rig will be moved to the site for the Sidi Toui-4 well to drill the second well in the current programme.

Brian O'Cathain, Chief Executive commented:

"We are pleased to be drilling again in Tunisia on this high-potential exploration licence. We look forward to some interesting evaluation results in the near future".

 Ends

Press Enquiries to:

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

Philip Dennis /Klara Kaczmarek, Pelham Bell Pottinger Tel: +44 20 7861 3919

Joe Murray / Joe Heron, Murray Consultants Tel: +353 (1) 4980300

Hugh McCutcheon / John Frain, Davy Tel: +353 (1) 679 6363

Dr. Dermot Corcoran, Head of Exploration, Petroceltic International plc, is the qualified person who 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. Definitions in this press release are consistent with Society of Petroleum Engineers/ World Petroleum Council guidelines, which can be seen at http://www.spe.org/industry/reserves/docs/Petroleum_Resources_Management_System_2007.pdf

GLOSSARY OF TERMS USED.

MMBBLS are millions of barrels of oil.

PROSPECTIVE RESOURCES are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development.

Notes to Editors:

Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on the Mediterranean, Middle East and North African area, and listed on the London Stock Exchange's AIM Market and the Irish Stock Exchange's ESM Market. The Company has exploration and appraisal assets in Algeria, Tunisia and Italy.