Petroceltic Buys BG's Italian Assets

Petroceltic International has entered into an agreement with BG Gas International BV Italian Branch a subsidiary of BG Group PLC to acquire BG Italia's interests in five Exploration Permits in the prolific Po Valley onshore gas basin. The interests in these permits vary from 50 per cent to 95 per cent. In addition, Petroceltic has agreed to acquire interests in two Exclusive Permit Applications from BG Italia, one in the Po Valley and one offshore in the Sicily Channel in Southern Italy.

The acquisition achieves significant portfolio diversification for Petroceltic with exposure to new hydrocarbon plays generated by over 750 km2 of 3D seismic already acquired and processed in the permit areas. Included in the package is a significant legacy database with additional 3D seismic data. Completion, subject to the usual regulatory approvals, is anticipated before year-end.

Petroceltic's CEO, John Craven, commented:

"Petroceltic has availed of a unique opportunity to acquire a strategic position in the mature Po Valley Basin, Italy's largest gas province. Drillable gas prospects in this portfolio have already been matured via 3D seismic acquisition and interpretation. I am also confident that additional hydrocarbon prospects will be generated by the legacy database, particularly as it includes a number of 3D seismic surveys.

We are delighted to be expanding our area of interest in Italy, and look forward to advancing a drilling program there in 2008"