The board of Petroceltic International plc provides an update on the company's current operations and the outlook on plans for 2008.

Algeria

In the Isarene permit (Petroceltic Operator, 75% interest) Petroceltic is pleased to announce the commencement of geophysical operations for the acquisition of a major 3D Wide Azimuth (WAZ) seismic survey. The survey, covering a total area of approximately 850 km2, is focussed on the highly prospective North Ain Tsila Ridge, in an area where log and test data from prior wells indicate the presence of hydrocarbons in both the Ordovician and Devonian reservoirs. Petroceltic and its partner Sonatrach have awarded the contract for this survey to Global Geophysical, a company experienced in 3D WAZ seismic survey acquisition elsewhere in Algeria.

Petroceltic's strategy going forward is to employ the latest seismic technologies and a key objective of the 3D WAZ seismic survey is to identify high permeability sweet spots in the target Ordovician reservoirs in order to optimize drilling and well testing procedures. This technique has been successfully deployed by BP in the appraisal and development of the adjacent Tiguentourine Field in the Illizi Basin (to the east of the Isarene Permit) - where average development well flow rates of 80 mmscf/d from the Ordovician reservoir, have been reported*.

The survey is scheduled to take six months to acquire, and the data will be utilised as acquired to plan up to 5 wells in this area commencing in Q4 2008, and continuing into 2009.

After completion of the survey on the ridge, 3D seismic will be acquired over the Isas and Hassi Tab Tab discovery areas as a prelude to delineation drilling planned for 2009.

Italy

The acquisition of the BG Group Italia Po Valley upstream interests, announced on 15th October 2007, was completed on 28th December 2007, following partner approval and final consent from the Italian authorities. This deal gives Petroceltic an inventory of operated and non-operated ready-to-drill prospects defined by existing 3D seismic data near to producing gas fields in the Po Valley and compliments Petroceltic's existing oil dominated acreage in the Central Adriatic region.

Activity in the Po Valley in 2008 will focus on the Carissio and Torrente Nure Licences. In Carissio (Petroceltic Operated, 95% interest) there are two gas prospects well-defined by 3D seismic, Rosso and Arborio. These low-risk prospects are adjacent to existing gas infrastructure. The Company intends to mature these to fully-permitted, ready-to-drill prospects during the year, with drilling planned for Q4 2008/Q1 2009, subject to rig availability. In Torrente Nure (ENI operated, Petroceltic 55% interest) the operator intends to shoot additional 2D seismic, with a view to drilling an exploration well in 2009.

Central Appenines: On the BR268 RG licence (Viga Oil S.P.A. Operated, Petroceltic 40% interest), the Company intends to acquire additional seismic on the Elsa-1 discovery, prior to offshore appraisal drilling in Q4 2008/Q1 2009, subject to rig availability. On Civitiquana (Vega Oil S.P.A. Operated, Petroceltic 40% interest), data collation and study is underway, with a view to drilling in the first half of 2009.

The Company may seek to share risk in some of these prospects through a partial farm-out to industry partners or strategic investor.

Tunisia

Petroceltic is pleased to announce that it has notified ETAP, the Tunisian State Oil Company, of its intention to enter the second phase of the Ksar Hadada Production Sharing Contract (Petroceltic 57%, Operator), which will extend this licence until April 2011. The Company has remapped the reprocessed seismic data on the licence, and is now planning up to three wells (subject to rig availability) in Q2/Q3 2008. Discussions on rig contracting are currently underway. It is likely that the Company will seek to share the risk of drilling the prospects identified through a partial farm-out of its interest in the licence.

Petroceltic's CEO, Mr John Craven, said, "We are very excited about the prospects for the Company in 2008/09. Work has now commenced on the 3D WAZ seismic survey across our main prospect and discovery areas on the Isarene permit in Algeria. This, together with the exploration drilling planned for later in 2008, should help to firm up the resource potential of this very prospective area. The new seismic has the additional benefit of fulfilling our outstanding work programme commitment for the first exploration phase of this Production Sharing Contract.

In Italy, we have developed our portfolio dramatically through the BG Italia Po Valley acquisition, and look forward to a year of adding significant value for shareholders and in Tunisia, our re-mapping of the area has identified additional prospectivity.

We are confident that our programme can be achieved within the current funding and strategic options open to the Company, and we look forward to an active period focused on unlocking the significant value within our portfolio".

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