Completion of Algeria Farmout

Dublin

8 July 2014

Petroceltic International Plc

Completion of Algeria farm-out transaction

Petroceltic International plc ("Petroceltic" or "the Company"), the independent oil and gas exploration and production company focused on the Middle East, North Africa, Mediterranean and Black Sea regions, is pleased to announce the completion of its sale of an 18.375% interest in the Isarene PSC to Sonatrach, the National Oil and Gas Company of Algeria.

The assignment was effected by way of a sale and purchase agreement, under which Sonatrach has acquired a further 18.375% interest in the Isarene PSC covering Blocks 228 and 229a. The amendment to the Isarene PSC (or 'Avenant') required to give effect to the transfer was signed by Sonatrach, Petroceltic and Enel at a ceremony in Algiers on 12 February 2014. This was subsequently ratified by the Algerian Council of Ministers and completion occurred with the publishing of the Avenant in the official journal of Algeria on 18 June 2014 which was made available publically on 7 July 2014.

The terms of the agreement with Sonatrach provide for a consideration of up to a maximum amount of US$180 million. The consideration comprises US$20 million payment on this completion of the transaction, a further US$140 million payment of Petroceltic's share of Ain Tsila project development cost from the effective date of 4 July 2013, and contingent payments of up to US$20 million based on the achievement of certain project related milestones.

Post completion, Petroceltic has a 38.25% interest, Sonatrach has a 43.375% interest, and Enel maintains its 18.375% interest. Petroceltic remains operator of the license.

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

"We are delighted to announce the completion of the Sonatrach farm-out. Petroceltic has had a positive and mutually beneficial relationship with Sonatrach throughout the exploration, appraisal and now development phases of the Isarene PSC. The formal ratification of this agreement is a critical step in the overall funding plan for this development project. As development operations ramp-up, we look forward to continuing to work with Sonatrach and Enel to deliver the Ain Tsila Project and to maximise the value of this important national resource for Algeria"

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

Douglas Keatinge / 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.

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.