Italian Update

PRESS RELEASE

Dublin: 1st July 2010

PETROCELTIC INTERNATIONAL PLC

Italian Update

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 advises that on 30th June the Italian Minister of Environment, Stafania Prestigiacomo, announced at a conference in Rome that an outline proposed decree to amend the Italian Environmental Code had been adopted by the Council of Ministers that will inter alia prohibit drilling in the Italian seas within 5 miles of the coastline and within 12 miles around the perimeter of protected Marine Parks.

Petroceltic understands that should this restriction be passed into law it will apply to permit applications currently pending and is likely to include Petroceltic's current location for Elsa 2. This well was scheduled to spud in Q4 2010.

Petroceltic are currently seeking further clarification on the process for adopting or rejecting this outline decree and the validity of the application of an immediate restriction to drilling operations.

The Elsa structure straddles the proposed 5 mile restriction and therefore Petroceltic are considering alternative well locations on the structure which are outside of the proposed 5 mile boundary. Petroceltic intend to continue with the existing environmental permitting process, which is at an advanced stage, whilst the implications of the proposed restrictions are assessed.

Should the proposed change to the Environmental Code come into force Petroceltic intends to seek agreement from the Ministry of Industry to suspend any licence timing obligations in order to extend the well spud deadline.

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. .

Brian O'Cathain, Chief Executive of Petroceltic, commented: "We are keenly aware of the environmental concerns associated with drilling in the Abbruzo region and have been diligent in communicating to stakeholders our plans to mitigate environmental risks when drilling the Elsa 2 well. This has been done through the official permitting and consultation process and additionally through a voluntary supplemental communication initiative. We are committed to maintaining this partnership approach in the months ahead."

 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.