Petroceltic : Operations Update

Dublin

8 May 2014

Petroceltic International Plc

Operations Update - Kurdistan Region of Iraq, Egypt & Romania 

Petroceltic International plc ("Petroceltic" or "the Company"), the independent oil and gas exploration company focused on the Middle East, North Africa, Mediterranean and Black Sea regions, announces an update on its operations in the Kurdistan Region of Iraq, Egypt and Romania.

Kurdistan: The Shakrok-1 well on the Shakrok licence (Petroceltic 16%, Hess (Operator) 64% and Kurdistan Regional Government 20%) reached its total depth of 3,538m on 30 March 2014, as previously announced. Based on core and wireline log data, the Joint Venture partnership agreed to carry out Drill Stem Tests (DSTs) over four potential oil zones in the Jurassic interval, which is the primary objective of the well.

The first two of these DSTs have been completed in the fractured carbonates of the Butmah formation. Both of these tests flowed formation water to surface with no hydrocarbons. The forward plan is to proceed with the testing programme and run two further DSTs in the overlying Adaiyah and Mus intervals. Testing operations are planned to continue until late May.

Drilling preparations are at an advanced stage for the Shireen-1 well on the Dinarta licence (Petroceltic 16%, Hess (Operator) 64% and Kurdistan Regional Government 20%). The Parker Rig 247 is currently being rigged-up on the Shireen-1 location. Drilling is scheduled to commence within 3 to 4 weeks and the well is expected to take around 150 days to reach its planned total depth. The well is targeting oil in both the Jurassic and Triassic formations, with gross mean unrisked gross prospective oil resources of 706 MMbbls*.

Egypt: The Company commenced drilling an exploration well on the South Dikirnis prospect on 2 May 2014, using the EDC-9 rig. The well is targeting a potential oil and gas bearing prospect within the West Dikirnis licence (Petroceltic, Operator, 100%) adjacent to existing facilities and infrastructure. The South Dikirnis prospect has a gross mean unrisked prospective resource of 7.6 MMboe. The well is currently drilling ahead at 1042 metres measured depth, with total depth expected at 2895 metres. The well is scheduled to reach total depth in early June.

Romania: The Muridava-1 exploration well was initiated on the Muridava (EX-27) Licence (Petroceltic 40%, Operator, Sterling Resources, 40%, Petromar 20%) on 11 April 2014, and is drilling ahead at 1750 metres measured depth. The well is expected to take two months to complete, and is targeting gross mean unrisked prospective resource of 185 BCF from the Eocene, Paleocene and Upper Cretaceous intervals.

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

"We have reached the half-way point of our Jurassic formation testing program in Shakrok-1. The well-test results to date indicate that the Butmah formation is water-bearing and contains only residual, non-moveable, hydrocarbons. The remaining two tests will target potential oil zones which have been identified by wireline logging within a gross 300 meter stratigraphic column beneath the Alan Anhydrite formation, which acts as an effective seal for oil columns in offsetting discoveries. We await with interest the outcome of these next two tests. We will continue to update shareholders on Shakrok well testing, Dinarta operations, and on our ongoing exploration wells in Egypt and Romania, as further material results become available."

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.

*706 MMbbls oil is the Mean unrisked Gross Prospective Oil Resources for the Shireen prospect in the DeGolyer & MacNaughton Competent Persons Report of July 2012 for Petroceltic International plc.

Glossary

MMboe = Million Barrels Oil Equivalent
BCF = Billion Cubic Feet

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.