Update on Italian Offshore Legislation

Dublin

6 August 2012

Update on Italian Offshore Legislation

Legislative Decree 83/2012 (the "Decree"), published on 26 June 2012, has now been approved by both houses of the Italian Parliament with no substantial modifications. The Decree will become law following publication in the Italian Official Journal. The new law modifies, and in some cases extends, restrictions on offshore oil and gas exploration and production originally introduced by DLGS 128/2010 in August 2010.

The law clarifies the application of certain restrictions imposed under DLGS 128/2010. In particular, these provisions will no longer apply to:

(i) applications for production concessions that were under review at the time DLGS 128/2010 came into force;

(ii) any titles, including exploration licences that had already been issued prior to DLGS 128/2010 coming into force; and

(iii) any proceedings connected with or subsequent to such titles, including possible extensions of the same.

Brian O'Cathain, Chief Executive of Petroceltic commented:

"We are very pleased that the Decree has been approved and believe that the new law removes the existing uncertainty concerning exploration, development and production activities in Italian waters. We will now commence discussions with the relevant National and Regional institutions concerning the Elsa project, which we are committed to progressing to the benefit of all stakeholders in a safe and environmentally-responsible manner"

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

John Frain, Davy Tel: +353 (1) 679 6363

Notes to Editors:

Petroceltic Operations in Italy

Italy is the third largest producer of oil and the fifth largest of gas in Western Europe. Proven reserves in Italy to date exceed 622m barrels of crude oil and 8 TCF of gas. Petroceltic has had a strong presence in Italy since 2005. The current portfolio consists of four permits in the central Adriatic area, including the Elsa discovery, of which Petroceltic is operator. The Company also has four permits in the Western Po Valley, including the Carisio Permit containing the Carpignano Sesia prospect due to begin drilling later in 2012.