Petroceltic International was notified that Iberdrola had sold 215,769,231 ordinary shares, being all of its 15.68 per cent shareholding in Petroceltic, on the 15th January 2010. The shares were placed with a group of existing and new Petroceltic shareholders at 16p per share, a 1p per share premium to the previous day's closing price. The placing was co-ordinated by Petroceltic's brokers Mirabaud and Davy.

Following the sale, Iberdrola no longer holds a shareholding in Petroceltic. In line with the provisions of the Shareholder's agreement entered into by Petroceltic and Iberdrola on 30 June 2008, Iberdrola's representative on the Board of Petroceltic, Pablo Fuentes-Cantillana, has resigned as a director of the Company with immediate effect.

The Iberdrola shareholding had been subject to a lock-in arrangement and in exchange for Petroceltic's consent to allow Iberdrola to place this stake via the Company's brokers, Iberdrola has agreed to the early termination of its option to acquire a 49% interest in any of Petroceltic's upstream assets and Petroceltic has agreed to the repayment of the $7.3 million option fee paid by Iberdrola in January 2009, over the next 18 months. This agreement constitutes a related party transaction under the AIM and IEX Rules. The Independent Directors, having consulted with Davy, the Company's Nominated Advisor, consider that the terms of the agreement are fair and reasonable, insofar as Shareholders are concerned.

Brian O'Cathain, Chief Executive of Petroceltic, commented, "We are delighted that the principal shareholders in Petroceltic have expressed their strong support for the Company by acquiring the Iberdrola stake at a premium to market. Our investors see the considerable latent value in our portfolio, and are committed to working with us to realise the upside value over the coming year, in particular in our Algerian assets where our recent drilling campaign has demonstrated the presence of a very large gas accumulation capable of flowing at rates exceeding 30 mmscf/d per well.

We have valued Iberdrola's contribution to Petroceltic over the past 18 months. In particular, Pablo Fuentes-Cantillana has made a very positive contribution to our growth and on behalf of the Board I wish to thank him for his contribution, and to wish him every success in his future endeavours."

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