Italian Farm Out

PETROCELTIC INTERNATIONAL PLC

$26m farm out and investment agreement for Elsa-2 offshore Adriatic well

Orca Exploration and Gemini Oil & Gas Fund participate

Petroceltic retains operatorship and 55% interest

Petroceltic International plc (PCI.L) ("Petroceltic" or "the Company"), the independent oil & gas exploration company focussed on the Middle East, North Africa and Mediterranean region, today announces a farm-out of its offshore Italy, Central Adriatic B.R268.RG permit ("the Permit") to Orca Exploration and the signing of an investment agreement with Gemini Oil and Gas.

The farm out Agreement ("the Agreement") has been signed with Orca Exploration Group Inc. ("Orca"), a wholly owned subsidiary of Orca Exploration Inc (ORC-B: TSX Venture Exchange). Under the terms of the Agreement, Petroceltic has agreed to transfer a fifteen per cent (15%) participating interest in the Permit to Orca. In exchange, Orca has agreed to pay thirty per cent (30%) of the drilling and completion costs for the proposed Elsa-2 well ("the Well") up to a maximum amount of US $11.52 million. Orca has also agreed to pay Petroceltic fifteen per cent (15%) of the back costs in relation to the well up to a maximum of US $0.52 million. On completion of the Well, Petroceltic and Orca will fund all future costs relating to the Permit in proportion to their participating interests.

Additionally, Orca is entitled to a participating interest of 15% in all of Petroceltic's existing Adriatic area exploration permit applications, in permits d505BR, d500BR, d499BR, d498BR, d497BR, d496BR, d495BR, d494BR, d493BR, d492BR and d507BR-EL, on final decree of these permits. The Agreement is subject to receipt of Italian regulatory approvals.

The investment agreement ("the Gemini Investment Agreement") has been signed with Gemini Oil & Gas Fund II, L.P. ("Gemini"), a specialist investment fund focussed on acquiring entitlements to oil and gas revenues through provision of capital to companies. Under the terms of the Gemini Investment Agreement, Gemini has agreed to provide $14 million towards the funding for the Well to be made available to Petroceltic in three tranches, with the final tranche ($4M) becoming available on testing of the Well. In exchange, Petroceltic has agreed to provide Gemini with an entitlement to receive revenues derived from the oil and gas production from the Elsa field once it is brought into development.

On completion of the Orca Agreement and the Gemini Investment Agreement, Petroceltic will have raised over US $26 million towards the funding for the Well. The full Well cost is expected to be US$37 million, including testing. The Company retains a fifty-five per cent interest (55%) in the Permit and operatorship. Orca has a fifteen per cent (15%) interest in the permit and Vega Oil S.P.A. retains a thirty per cent (30%) interest, fully carried to the commencement of production testing.

The Elsa field was discovered in 1992 by AGIP with the drilling of the Elsa-1 well which encountered an oil column of 65 meters in the Lower Cretaceous Maiolica Formation at a depth of approximately 4,500 meters. A TRACS Competent Person's Report on the Elsa field published in March 2010 estimated the

most likely recoverable oil reserves to be in the region of 100 MMbbl, depending on oil gravity and viscosity. The low risk Well has the primary objective of confirming the commercial production potential of the reservoir when flow tested. Positive results from Elsa-2 will be followed by a 3D seismic survey over the field.

Brian O'Cathain, Chief Executive of Petroceltic, commented: "We are delighted to have Orca and Gemini participating in the Elsa-2 appraisal well. Both are respected industry partners who add further support to our commitment to the appraisal and development of our licences in the Central Adriatic region of Italy. Elsa is an exciting prospect, which has the potential to add significant value to our Italian portfolio. We expect to commence drilling at the Elsa-2 location in the fourth quarter of 2010, and are well advanced in discussions on contracting a rig for the well."

 Ends

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

Notes to Editors:

Petroceltic International plc is a leading Upstream Oil and Gas Exploration and Production Company, focused on the Mediterranean, Middle East and North African area, and listed on the London Stock Exchange's AIM Market and the Irish Stock Exchange's ESM Market. The Company has exploration and appraisal assets in Algeria, Tunisia and Italy.

The Elsa-1 well, drilled by ENI in 1992 (with partners Elf and Enterprise Oil), encountered a 65m oil column in the dolomitised early Cretaceous Maiolica Formation. Oil was recovered to surface after a sub-optimal open hole drill stem test. The well was not completed or properly tested at the time due to operational issues. The dolomitised early Cretaceous Maiolica formation play was subsequently proven as commercial by the drilling of the Miglianico-1 discovery well on the adjacent Miglianico field in 2001. Miglianico-1 tested 34 API oil from the Maiolica formation. A number of other commercial oil accumulations are close to Elsa, including the Rospo Mare Field and the Ombrina Mare field.