Petroceltic International provides an update on operations at the Ain Tsila field in Algeria. Petroceltic operates the permit with a 56.625% interest, Sonatrach holds a 25% interest and Enel holds an 18.375% interest.

Highlights

■ AT-9 well flows at 43.9 MMscf/d from the Upper Zone and 8.9 mmscf/d from the Lower Zone without fracture stimulation ■ Substantial condensate yields from both zones - 1,005 bpd from the Upper Zone and 205 bpd from the Lower Zone ■ Highest pre-fracture stimulation flow rates achieved to date on the Ain Tsila field ■ The well will not be fracture stimulated at this time as current test rates are already limited by surface facility capacity. ■ 2011 Algerian appraisal drilling and testing programme now complete - all 6 wells successfully tested gas columns ■ 3 of the total of 9 wells drilled have flowed gas at rates in excess of 33 mmscf/d

AT-9 operational update

The AT-9 well is a horizontal appraisal well located towards the centre of the Ain Tsila field. Its main objective was to assess the productivity associated with a structural feature of a different style to those already tested at AT-5 and AT-8, and in an area between two known productive wells. A near horizontal section of 415m was successfully drilled entirely within the upper part of the reservoir with the well reaching its total depth of 2494m on 24th October 2011. Logging results indicated an uppermost interval of 57m along hole with an average net porosity of 10.6%, and with good indications of natural fractures in the remainder of the well. An open-hole packer multistage completion was run isolating two individual zones.

The AT-9 well is now being suspended for use as a future production well. It may be fracture stimulated when completed as a development well.

This well test is the final part of the 2011 six-well appraisal programme, which has successfully proven gas in all six wells, and has tested gas at rates above 33 mmscf/d in three of those wells.

Brian O'Cathain, Chief Executive of Petroceltic, commented,"We are delighted to have achieved such excellent flow results from the Ordovician reservoir at AT-9 without fracture stimulation. This result confirms the improved reservoir quality indicated by well log analysis and significantly extends the area of excellent productivity within the Ain Tsila Field. This is the 3rd of our nine appraisal wells to flow at very high rates, and supports the production profile anticipated at field start up. We believe that in full production and following fracture stimulation this well could produce at rates in excess of 60mmscf/d on a sustained basis.

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