Algerian Update

Petroceltic International plc

Algerian operations update

AT-4 appraisal well spuds on Ain Tsila discovery

Petroceltic International plc ("Petroceltic" or "the Company"), the upstream oil and gas exploration and production company focused on the Middle East, North Africa and the Mediterranean is pleased to announce that it has commenced appraisal drilling operations on the Isarene permit in Algeria. Drilling began at the AT-4 well on the Ain Tsila discovery on 16th November 2010.

The overall programme of 4 wells planned for the Isarene permit by Petroceltic (Operator, 75% equity interest) and its co-venturer Sonatrach (25% equity interest), is focused on the large Ain Tsila gas condensate discovery made on the permit in 2009. The wells are being drilled as part of a two-year appraisal extension programme awarded to Petroceltic following the discovery.

The first 3 wells of the programme have already been approved for drilling by the co-venturer and are focused on demonstrating commercial production rates from the reservoir and extending the proven gas area beyond that already discovered in the initial 5-year exploration period. Allowing for rig moves and drilling times, the second well of the programme (AT-5) is expected to begin drilling operations in 8 to 9 weeks time.

AT-4 is a vertical well that is being drilled on the eastern flank of the field where mapping indicates the potential to significantly enhance proven gas volumes. It is planned to take up to 60m of core within the reservoir and then to log and run a completion. The testing programme is designed to facilitate hydraulic fracturing of the reservoir if required. The objective is to define the eastern limits of the field, assess the reservoir quality in this area and gather valuable production test data.

The Company plans to test and where necessary fracture the objective reservoir sections of the wells drilled without using the drilling rig ("rigless testing"). The rigless testing approach has many operational benefits and reduces cost and programme length overall. Petroceltic does not intend to announce the commencement of each well in the campaign. Well testing will be announced on completion, subject to regulatory announcement obligations and the co-venturers agreement to the announcement, in accordance with the public announcement provisions of the Isarene Production Sharing Contract. The first testing results are currently scheduled for announcement in February 2011.

Brian O'Cathain, Chief Executive of Petroceltic commented:

"The Ain Tsila field is a world class discovery and we are looking forward to further appraising its considerable potential. The field covers an area of over 1,000 square kilometers with current internal Gas Initially In Place estimates ranging from 6 to up to 14 Trillion Cubic Feet. The two year appraisal extension enables us to properly assess the structure, to establish recoverable gas reserves and to optimize our development programme investment. We expect to follow this delineation programme with submission of a plan of development to the Algerian authorities during 2011."

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.

Notes to Editors:

Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on the Middle East, North Africa and Mediterranean area, and listed on the London Stock Exchange's AIM Market and the Irish Sock Exchange's ESM Market. The Company has exploration assets in Algeria, Tunisia and Italy. Petroceltic is in a unique position in Algeria, operating a significant licence in partnership with Sonatrach the state oil company, one of only two AIM listed companies to enjoy this position.

The Ain Tsila discovery was made by Petroceltic in 2009 and was reported by IHS/Herold as the 10th largest discovery made worldwide in 2009.

A map depicting the location of the AT-4 well location within the Isarene permit in included in the Algerian section of the Operations area on the company's website, www.petroceltic.ie.