Algeria Operational Update

Petroceltic International plc

Algeria Operational Update

AT-7 Produces 4.9 MMscf/d and AT-9 encounters improved reservoir quality

Petroceltic International plc ("Petroceltic" or "the Company"), the upstream oil and gas exploration and production company focused on North Africa, the Middle East and the Mediterranean, is pleased to issue an update on operations at the Ain Tsila field on its Isarene permit (Blocks 228 & 229a) in south eastern Algeria. Petroceltic operates the permit with a 56.625% interest, Sonatrach holds a 25% interest, and Enel holds an 18.375% interest, pending Algerian authorities approval.

Highlights

·; AT-7 well flows at 4.9 MMscf/d after fracture stimulation

·; AT-9 successfully encounters improved reservoir quality

AT-7 well testing results

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The AT-7 well, a vertical well, was drilled approximately 12 km south of the AT-3 well and 15 km west of the AT-6 well to appraise the south western extension of the field. The well has been hydraulically fractured and successfully produced at a gas rate of 4.9 MMscf/d on a 48/64" choke with a well head pressure of 470 psig.

Well testing operations are continuing on a series of different choke sizes to assist in characterising the reservoir in this southerly part of the field.

AT-9 operational update

The AT-9 well is a horizontal appraisal well and is located towards the centre of the Ain Tsila field, 4.3km north east of the AT-2 appraisal well and 7.8km south east of the AT-1 discovery well. Its main objective is to assess the productivity associated with a structural ("pop-up") feature of a different style to those already tested at AT-5 and AT-8, and in an area between two known productive wells (AT-1 and AT-2). It is the 6th and final well in the current appraisal programme. The rig will be released from contract on completion of this well.

The well commenced drilling on 12th September and reached its total depth of 2494m on 24th October. A near horizontal section of 415m has been drilled successfully as planned entirely within the upper part of the reservoir. Logging results indicate an uppermost interval of 57m along hole (7.5m vertical thickness) with an average net porosity of 10.6% and a maximum porosity value of 14.5%. There are good indications of natural fractures in the remainder of the horizontal section.

Testing with the rigless testing unit will commence during November after completion of testing at the AT-7 well.

Brian O'Cathain, Chief Executive of Petroceltic commented:

"We are delighted to have successfully fracture stimulated the AT-7 well. This result confirms that commercial gas rates can be achieved in the south of the field after the mixed results of AT-6.

We are very encouraged by the logging results from AT-9, which was drilled on time and within budget, particularly as it extends the presence of this interval of high quality sand, successfully tested in AT-1 and AT-8, further south into the centre of the field. Initial petrophysical evaluation indicates that this is the best quality reservoir encountered in any of the Ain Tsila wells to-date.

These results improve our understanding of this field and support the current conceptual Field Development Plan in the Final Discovery Report which we plan to submit to the Algerian competent authorities by the end of January 2012."

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) 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.

Glossary

Bpd: Barrels per day

Choke setting 64"s: The choke setting in diameter, measured in 64ths of one imperial inch.

MMscf/d: Million standard cubic feet per day

FWHP PSIG: Flowing well head pressure in pounds per square inch (gauge)

TVDSS: True vertical depth sub-sea in metres