Petroceltic International PLC : Issue of Legal Proceedings

Dublin

5 July 2013                

Petroceltic International Plc

Issue of Legal Proceedings

Petroceltic International Plc ("Petroceltic" or "the Company") announces that it has issued legal proceedings in the High Court of Ireland against two parties with whom the Company's previous Board entered into service and consultancy agreements in 2004 and 2005 with respect to its North African business activities. 

Petroceltic's action follows the receipt of correspondence threatening legal proceedings against the Company on behalf of one of the parties seeking payment of sums totalling $3.4 million pursuant to these agreements. The agreements contain provisions under which the parties could make claims for further material payments from the Company.

Petroceltic, having taken legal advice, believes that the original agreements constituted a fraud on the Company and has consequently issued legal proceedings to have them declared void. The proceedings also seek recovery of significant payments made to the two parties under the agreements during 2005 and 2006.  The Company will also consider any further actions that may be required to protect its interests.

The matter has been brought to the attention of the relevant authorities, as well as current and intended future partners and other key stakeholders.

Further announcements will be made as appropriate.

For further information, please contact:

Notes to Editors:

Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on 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, Bulgaria, Egypt, the Kurdistan Region of Iraq, Italy and Romania.