Petroceltic International reported the sale of an 18.375% interest in the Isarene Production Sharing Contract (PSC), to ENEL Trade S.p.A. (ENEL). This transaction is subject to the satisfaction of certain conditions, most notably the signing of an amendment to the PSC to effect the transfer of 18.375% of the rights and obligations under the PSC from Petroceltic to ENEL (the 'Amendment').

The Amendment was duly signed by Petroceltic, ENEL and the Algerian National Company for Hydrocarbons ('Sonatrach') at an official signing ceremony in Algiers on 28th April 2011.

The only regulatory condition now remaining relates to the approval of the Amendment by Executive Decree and subsequent publication of this decree in the Official Gazette of the Algerian Government. This is an administrative process which does not confer any rights of pre-emption or challenge or involve any additional scrutiny of the terms of the transaction. The first payment under the agreement, which will be in excess of US$55 million, is due 30 days following this publication.

Brian O'Cathain, Chief Executive of Petroceltic commented, 'We are delighted to have concluded the signing of the Amendment to the PSC in an efficient and timely fashion with the active support of Sonatrach and ENEL. Petroceltic has already commenced planning for the enlargement of the Isarene appraisal campaign and introduction of our new partner. We look forward to the results from the continuation of this drilling campaign and are confident that ENEL's input will also make a significant contribution to pre-development and gas commercialisation planning when this commences in the months ahead'.

Tags: Petroceltic International plc