Petroceltic to Suspend Sidi Toui 3 Well in Tunisia

Petroceltic operated well Sidi Toui 3 in the Ksar Hadada block has been drilled to a total measured depth of 1300 meters, logged and tested. The objective Ordovician Hamra Quartzite, was encountered at 1023 meters approximately 380meters up dip from the Sidi Toui 1 well located 4.5 kilometers to the east.

Whilst drilling through the Hamra Quartzite oil shows were recorded over a 177meter gross interval from 1023 to total depth at 1300 meters. Casing was set above the Quartzite to facilitate a short duration open hole test which commenced on the evening of 2 December, 2004 during which hydrocarbons were not recovered.

The Ordovician Hamra Quartzite, when fractured, is a significant hydrocarbon producer in Libya, Algeria and Tunisia.

Oil and gas shows were also encountered at a shallower depth over an interval from 835 to 900meters. However, it was not possible to test this zone, which is behind casing, at this time due to a commitment to release the rig to another oil company after conducting one test.

The well is to be suspended pending further evaluation and/or testing in order to assess the future potential of the Sidi Toui structure.

Oryx Prospect

Acquisition of new seismic over this prospect is expected to commence next month. This data will be acquired at no cost to Petroceltic and will be used to determine a well location on this prospect

John Craven CEO of Petroceltic commented, "The oil and gas shows in Sidi Toui 3 give us confidence that there is working petroleum system in the southern part of our Ksar Hadada block. In this area there are some very large structures including Sidi Toui and Oryx. During the coming weeks we will be evaluating all the data from Sidi Toui 3 and the new seismic from Oryx to plan our future drilling campaign in this large block."

Further Information

Petroceltic has a 100% working interest in the 7, 500 square kilometer Ksar Hadada Block in southern Tunisia, which contains a number of leads and prospects. Petroceltic also has appraisal and exploration interests in Algeria, Italy and offshore Ireland and has cash resources going forward of over US$25 million.