Petroceltic International plc, the upstream oil and gas exploration and production company focused on North Africa and the Mediterranean has received the following announcement from Cygam Energy Inc. its partner in the B.R268.RG permit (“the Permit”), located in the central Adriatic Sea offshore Italy and encompassing an area of approximately 31,300 acres (127 km2).

Cygam Energy Inc. announce that it has received an independent assessment of contingent oil and gas resources on the B.R268.RG permit (“the Permit”), located offshore Italy, in the central Adriatic Sea, and encompassing an area of approximately 31,300 acres (127 km2).

DeGolyer and MacNaughton Canada Limited (“D&M”), a worldwide petroleum and engineering consulting firm, has determined that a best estimate of the unrisked contingent recoverable oil and gas resource attributable to the 13.65 km2 Elsa structure identified in the Permit is 104.23 million barrels of oil and 31.49 Bcf of gas.

The Petroleum Initial in Place (PIIP), expressed as oil, on the Elsa structure was estimated by D&M at 521 million barrels for the best case scenario (403 million for the low case and 556 million for the high case). Petroleum Initial in Place is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered.

While existing seismic data on the Permit clearly shows several large structures, with closure, D&M was asked to evaluate only the Elsa structure at this time. The Corporation believes that additional potential also exists in the other structures and may ask D&M to evaluate them at a future time.

Petroceltic has a 40% working interest in the Permit. The remaining interest is held by Cygam Energy Inc. which has a 60% working interest, inclusive of a 20% carried interest in the first well drilled on the block.

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