New Projects and good prospects. will be the winner in 2004. IMO
25p in early 2004

I like what i read about this company, I have bought some in anticipation......I like the fact they are chasing prospects in Libya & Algeria plus the regular income from their gas wells in EIRE. Give it few months after some announcements and price will double. So far the charts looks good. Good luck to all.

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Enjoy!!! 10% up Am i the only one here???

Company Petroceltic International PLC
TIDM PCI
Headline Acquisition
Released 07:00 30-Jun-04
Number 2827A



PETROCELTIC INTERNATIONAL PLC

Acquisition of stake in Italian Exploration Permits

BRG 490 and Civitaquana



Petroceltic International plc (Petroceltic), an AIM quoted upstream oil and gas company, announces that it has entered into an agreement to acquire up to a 40% interest in two permits which will give exclusive right to explore and produce hydrocarbons in two blocks, BRG 490 (offshore), and Civitaquana (onshore) in Eastern Italy.



In the offshore block, BRG 490, an oil discovery, ELSA 1, was made in the early 90s. Earlier this year, onshore and less than 2 km from BRG 490, drilling at Miglianico has confirmed the largest oil discovery in Italy in the last 20 years. Petroceltics evaluation of the geological, seismic and drilling data strongly indicates that BRG 490 shares the same geological, structural and reservoir characteristics as the Miglianico discovery, which is now in production. BRG 490 is thought to have the potential to contain 100-300mmbbl of recoverable oil.



Petroceltic has agreed to acquire an initial 15% interest from Rigo Oil, an Independent Italian oil company, with an option to increase its interest to 40% up to the time that a decision is made to drill. Rigo Oil will continue to hold the remainder of the stake in the permit, over which Petroceltic will hold pre-emption rights. Under the terms of the agreement, Petroceltic will issue as consideration 6 million warrants, which can be converted to ordinary shares in Petroceltic at Stg 9.94p, exercisable over a period of three years.



BRG 490 is situated on the Adriatic coast and the onshore block, Civitaquana, is located close by in Italys Abbruzzi province.



Brian Cusack, Executive Chairman of Petroceltic, commented:



We are extremely pleased to enter into this agreement, which fits into our strategy of acquiring low cost, high impact, appraisal projects in an established oil province. The Italian exploration and production terms are comparably very attractive and our initial work on the project has made us confident that we can conduct a successful appraisal programme in the near future.



Contacts:



Petroceltic International plc Tel: +353 1 662 7993
Brian Cusack, Chairman
Tel: +353 87 257 5476

brian.cusack@petroceltic.ie

John Craven, Managing Director
Tel: +353 86 386 2076

john.craven@petroceltic.ie

www.petroceltic.com





Binns & Co PR Ltd Tel : +44 (0) 20 7786 9600

Paul McManus
Mob: +44 (0) 7980 541 893


paul.mcmanus@binnspr.co.uk

Simpson PR

Ronnie Simpson
Tel: +353 1 260 5300




Davy

John Frain
Tel: +353 1 679 63 63




END





2004 London Stock Exchange plc. All rights reserved

Today's Leaders and Laggards
Shares in Petroceltic International rose 6% to 10.575p on news that the company has agreed to buy up to a 40% interest in two permits, which will give exclusive right to explore and produce hydrocarbons in two blocks, BRG 490 (offshore), and Civitaquana (onshore) in Eastern Italy. BRG 490 is thought to contain as much as 100-300m barrels of recoverable oil, it said.

xmortal: Other BBs are much more active on this stock. Price has just ticked up again. Now 11.10p on the offer and set to rise further. Prediction is 12p before the week is out. Hold tight and enjoy the fun.

Offer has just jumped to 11.25p. Here we go!

Up she goes again. Now 11.3p.

Today's announcement was the expected Italian tie up. More news to follow.

Reply from PCI to a recent email:

I'm sure you will appreciate that any announcements re. Drilling news and
further North African Acquisitions are of a price sensitive nature and a
such will be announced to all shareholders via the Stock Exchange. I have
your email address and will ensure that any announcements that are made are
sent to you when they come out.

I'm not entirely sure on what your assumption that PCI will release news in
June is based.

You will see that in the AGM statement made on 21 April the company is at an
advanced state of negotiation on the acquisition of a major interest, in
Europe, in a substantial offshore oil appraisal project. At the time
Petroceltic said that it expects to be in a position to make an announcement
on this project "shortly". We are still awaiting such an annoucement to be
made.

Petroceltic also said in this statement that it is in discussions with a
number of international companies on potential joint ventures in Tunisia. It
is also analysing oil and gas opportunities in Algeria and Libya. No time scale was placed on these and should these discussions prove fruitful PCI will be obliged to make a statement to the stock exchange.

Finally you are correct re Drilling in Tunisia in the AGM statement the
company said that it anticipates drilling a well on the prospect by August.

I hope this is helpful.

Kind regards,


Paul McManus

Offer is now 11.5p and rising!

Percentage Gainers

EPIC Name Price Change(%)
1 (1) PEEL Peel Hldgs. 1230.0 35 A
2 (2) LPY Leisureplay 3.75 19
3 (3) NEB Netb2b2 1.1 18 A
4 (4) TMN Themutual.NET 0.205 16 A
5 (5) XEN Xenova Grp. 11.25 16
6 (6) CLC Clinical Comp. 25.0 13
7 (7) PCI Petroceltic 11.35 13 A

June 7, 2004

Libya: The Government Hopes To Attract US$30 Billion Of Foreign Investment In The Oil And Gas Sector

By Barney Smith

When President George Bush launched his war on terror, Libya was seen as a paid up member of the so-called Axis of Evil. Thus in political and diplomatic terms it was as significant as it was unexpected when Colonel Muammar Ghaddfi, the Libya leader renounced terrorism and announced in December 2003 that he had terminated his programme of weapons of mass destruction.

The reasons for this dramatic change of attitude were complex. Doubtless the invasion of Iraq helped drive home the thought that other members of the Axis of Evil might also be potential US targets. But the decision was more likely the culmination of slow process which started with the strong US reaction to the 1986 Lockerbie bombing. This involved both air strikes and a trade embargo entailing the withdrawal of all US oil companies still operating in Libya.

The economy had already been weakened by the idiosyncratic basis on which the economy had been run since 1970 when it produced 3.3.million bpd, more than double todays production of 1.5 million bpd. So the embargo, and the sanctions subsequently imposed by the UN in 1992, had an increasingly serious impact. (A striking, though almost perhaps typical example is the decline in production of the 5 fields formerly operated by the American Oasis consortium. When they pulled out in 1986 production was 400,000 bpd. Today the figure is only 100,000 bpd. The embargo simply made it impossible to get parts for the machinery installed by the consortium.)

The sanctions also had a domestic political effect, creating a sense of frustration with Libyas international isolation. But perhaps more serious was the steady growth of the feeling that the economy was not delivering the new jobs needed by the younger generation, resulting in their increasing alienation from the regime and it principles. An outbreak of religious dissent underlined the message from events in next-door Algeria that Islam can have great attractions for those disappointed by the unfulfilled promises of Socialism.






A changing attitude to the Lockerbie issue enabled Libya to secure the suspension of UN sanctions in 1999 and their final abolition in September 2003. This went hand in hand with a more market-orientated approach to the economy as it became clear that reform was essential. The pace quickened in the summer of 2003 with the appointment of a new prime minister, Shukri Ghanem, an economist, whose task was to promote foreign investment not only in the oil sector, but across the board, including tourism. He was also committed to abolishing the public sector. He promised a programme to privatise 360 companies by 2008, together with tax reductions, unification of the dual exchange rate system, and reform of the foreign investment law.

These moves have a better chance because, over the last few years, some of the economic numbers have started to improve. Oil export revenues in 1998 were US$5.9 billion. Helped by rising oil prices they rose to US$13.4 billion in 2003. This rise was highly significant since oil exports account for 95 per cent of hard currency earnings and 75 per cent of Government resources. Buoyant revenues have resulted in comfortable foreign exchange reserves, a current account surplus, a fiscal surplus and a GDP per capita figure the highest in Africa, along with Botswana and its diamonds.

But effective modernisation of the Libyan economy requires structural change. The population, though still under 6 million, is rising and the economy is not well designed for creating employment (the swollen public sector takes 60 per cent of the government budget). The physical infrastructure is poor, particularly roads and logistics. But perhaps more important for attracting foreign investment is the need to improve the commercial law framework and offer better legal protection. All this constitutes quite a challenge.

However the potential rewards are on the same large scale. Libya is sitting on 3 per cent of the worlds oil, with proven oil reserves of 29.5 billion barrels, together with 1.5 per cent of the worlds gas (46.4 trillion cubic feet and maybe much more.) Yet in spite of a long history stretching back to 1959 for exploration and 1961 for production, Libya is comparatively unexplored. As a result of the sanctions and the hard terms sought by the Libyan government, only 25 per cent of the countrys area is covered by agreements with oil companies. In addition, the crude is high quality and production costs are extremely low, down to US$1 per barrel in the case of ENIs vast Elephant field. Finally, Libya benefits from a Mediterranean location. Italy, Spain, France and Germany take 75 per cent of Libyas oil and their oil companies have substantial operations there.

In order to achieve the Governments target of raising production to 2 million bpd by 2010, it is estimated that some US$30 billion of investment is needed, partly to develop the new fields, partly to introduce modern enhanced oil recovery techniques, and partly to renovate existing facilities. There is no shortage of external interest. Apart from the European companies already present, some old players are getting back into the act. At the time of UK Prime Minister Tony Blairs recent visit, there was the announcement of a long-term strategic partnership between the Libyan State Energy Company and Shell, which was active in Libya from the late 50s until 1974, and did some further exploration work in the late 80s. In addition there has been a technical visit by the members of the old Oasis consortium (Marathon, ConocoPhillips and Amerada-Hess). The Libyans have reportedly suggested they build an LNG plant on their old concession.

There are some new players too: the Indians and the Turks have a joint interest in the concession blocks and the Chinese National Petroleum Co has completed a US$230 million pipeline project. And, in the largest deal of them all, Petronas of Malaysia and Nimr Petrol of Saudi Arabia have been designated as operators of the entire November 7th Concession, the area jointly owned by Libya and Tunisia, estimated to contain 3.7 billion barrels of oil and nearly 12 trillion cubic feet of natural gas.

The message seems to be that foreigners are welcome, but not just western foreigners.

Grevis... i visit ADVFN soemtimes... what boards do u suggests. BTW. Many thanks for your post. We will appreciated if you also keep this board updated. Ta

xmortal: Seems that ADV are the dominant force for BBs but keep it up on here as well. The more who learn about this stock the better. PCI stand a good chance of hitting paydirt in Tunisia and if they do, then this stock will double from here. Good luck.

Small Cap Company with excellent prospects.
Great news just released.
The company's share price is undervalued and it should be the big winner soon.

Here is the broker note from January that gives a "conservative" value of 18p :

http://www.davy.ie/other/email/petrocr20040121.pdf

Here is a company presentation from January/Febuary time :

http://www.petroceltic.ie/pub/Petroceltic-preJan04.pdf

Here is the AGM presenation from April :

http://www.petroceltic.ie/pub/PetroAGM-presentation.pdf

This is from Oilbarrel.com,10.12.2003
Small But Ambitious Petroceltic Makes Progress With Two Possible Company Making Projects In Ireland And Tunisia
Petroceltic International is a small Irish and London AIM listed company, which is transforming itself from a mining company into an oil and gas concern. It was Ennex International which had interests in Kazakhstan. Renamed Petroceltic, it has a market capitalisation of around about 10 million. It has cash of about 1.8 million, some which it gained from a share placing raising, and the rest from the sale of investment interests, notably in Faroe Petroleum which floated fairly recently in London.

There is cash flow of about US$400,000 net per annum from an ongoing royalty from the Kinsale Head gas field in the Celtic Sea offshore Ireland. At the time of writing Kinsale Head is Irelands only producing gas field, although Ramco is expected to announce any day that production has started from its Seven Heads fields, also in the Celtic Sea. Kinsale is a mature field, but its life has been extended to 2012.

Petroceltics royalty income is expected to rise to US$500,000 in 2005. That for the moment is it, apart from some residual mining interests in Kazakhstan which do not produce any income just now.

But Petroceltic is nothing if not ambitious. It is currently progressing two low risk/high reward projects. The first, in the Celtic Sea Ireland, could be a company maker. The second, onshore Tunisia, North Africa could be described as possibly a jumbo company maker. Petroceltic has paid 82,609 in cash, and 82,609 in shares for an option to participate to the extent of 38 per cent in the licensing option covering part blocks 49/17, 49/22 and 49/23 in the Celtic Sea, granted to private group Island Expro. The option lasts until next August.

Gas was first discovered offshore Ireland in 1971 and the Kinsale Head field was brought into production in 1978 with reserves thought to be around 1 trillion cubic feet of gas. These have subsequently been upgraded to 2 trillion cubic feet. The field has been run by US group Marathon. Marathon explored for gas elsewhere and had finds in the Seven Heads field in the 1980s. These discoveries were not developed because Ireland at that time was a peripheral economy on the edge of Europe with little demand for gas. The emphasis switched to oil, and various groups drilled in the Celtic Sea but without real success.

The position has changed in that after a decade of strong economic growth Ireland is now hungry for locally flowing gas. Ramco took up the challenge and developed the Seven Heads field. Scottish based Ramco owns 86.75 per cent of the licence and is expected to produce 60 million cubic feet a day imminently.

Island Expro is run by Paul Griffiths and Viv Castens who were instrumental, through an earlier company, in getting Ramco involved in Seven Heads. They are hoping for success with the new part blocks 49/17, 49/22 and 49/23. These lie immediately to the southeast of the Kinsale Head gas field. The prime focus in this acreage will be for gas from the Lower Cretaceous Greensand (A Sand), the principal reservoir in the Kinsale Head gas field. The Lower Cretaceous Upper Wealdon (B), the principal reservoir in the Seven Heads gas field, is the secondary objective. There are at least two well-defined prospects. The companies are looking to find 1 trillion cubic feet of gas. This would be more than has so far been found at Seven Heads.

Petroceltics own model for the project says the risked value to the company, at a Net Present Value discounted at 10 per cent, would be 27 million to Petroceltic or around 8p per share. This assumes gross P50 reserves of 850 billion cubic feet of gas are found, a 38 per cent Petroceltic equity, a 25 per cent corporation tax, a 0.20 per therm gas price and that the Kinsale infrastructure is available for use. The company assumes a risk ratio factor of 1: 4.

The figures for the Tunisian project are even more jaw-dropping. Petroceltic is confident of signing soon a Production Sharing Contract with the Tunsian government for a 7,000 sq kms block near Libyan and Tunisian oil and gas finds. The Sidi Toui field is an Ordvician prospect, similar to other giant fractured Ordovician oil fields in North Africa including Hassi Messoud, Amal, Elephant, and Rhourd El Baguel. Petroceltic admits it has been lucky to come across the fields and fortunate that they have not been snapped up by other larger companies.

The Sidi Toui field was found for Petroceltic by geo-physicist Robert Bencini who is an old friend of John Craven, co-founder and managing director of Petroceltic. Bencini is the man who first found the Elephant field in Libya. The Elephant Field holds recoverable reserves of 560 million barrels of 38 per cent API sweet oil. The reservoir is naturally fractured quartzitic sandstone. The reservoir age is Cambro-Ordovician. It was declared commercial in February 1991. Sidi Toui is reckoned to be an analogue of Elephant and could hold 400 million barrels of oil reserves plus some gas.

Petroceltics model is that there could be a risked value to the company, at a Net Present Value discounted at 10 per cent, of 173 million or 50p a share. This assumes P50 reserves of 400 million barrels of oil and 160 billion cubic feet of gas, production of 50,000 barrels of oil a day and a US$20 per barrel flat oil price. Petrocletic reckons it would cost US$1.5 million to drill a well, and is thinking it might sole risk the project. It sounds mouth-watering, but as always it has to be pointed out that although such a project can be considered low risk, it is, nevertheless, like all oil and gas exploration projects, risky. You never know what is there until you drill.

Many thanks for your input, greatly appreciated.......lets hope some floor gets built around this prices before the next set of news.......

We can really do with some news on Libya and Algeria......They have mega massive gas and oil reserves.

xmortal: Apparently their Tunisian geoformation is similar to some of Algeria's biggest finds. This is according to one chap who has just returned from BP's production fields out there. All sounds pretty promising and yet another reason why the price is strengthening.

Many thanks Gravis2..... I am very confident PCI will move to 20p by the end of July.

Here is today presentation......To all of you have a read..... mega promising and exciting flow of news for the rest of 2004 and 2005.

http://www.petroceltic.ie/pub/June_30_2004.pdf

Good to see the price is on the up again after early profit taking.

Hi All,

I suppose some profit taking was bound to happen today on the back of yesterdays good rise. I've bought in twice on these and am holding for the long term.