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

It is looking better and better. I have not been this excited since I got married 25 years ago.

same here!...........but I'm telling you, the divorce papers are at the ready!!!!(only joking!!)

Morning all! Nice to see MM and B buys this morning.

good morning grevis, looks promising......

Morning rooandu: From Irish broker Dolmen's daily note:

Todays Recommendations
Petroceltic (16p) Algerian upside Stuart Draper
Results preview : With Petroceltic due to report results for the
6 months ended 30/06/04 within the next 10 days, some attention
is soon likely to turn to the recent Isarene Permit
award in Algeria, the announcement of which has to date had
very little effect on the share price, even though it will have
major implications for the companys future direction.
Algerian upside : The Isarene Permit covers over 10,000 square
kms in the prolific Illizi Basin of southern Algeria. It contains
existing reserves of 380 bn cubic feet of gas, as well as possible
reserves of more than 4 trillion cubic feet of gas and of
more than 400m barrels of oil. Being less than 100 kilometres
from a major operating gas infrastructure, will also enable
these reserves to be commercialised at a relatively low cost.
Upcoming drilling : At the end of this month, Petroceltic will
also announce the start of drilling at its Sidi Toui 3 Well in
southern Tunisia. This prospect has the potential to contain
over 400m barrels of recoverable light crude oil within a large
fault block structure. Petroceltic has also identified a second
major prospect close to Sidi Toui, called Oryx, which may be
drilled by the end of this year.
Cash position : Crucially for equity investors, Petroceltic has
no near term funding risk and has cash reserves of c.$15m. In
addition, the company has a small royalty interest in the
Celtic Sea which generates net cashflow of 0.25m per annum.
Healthy scepticism : Following disappointing drilling results
from both Ramco Energy and Providence within the last 12
months, there is now a healthy scepticism towards the sector
from investors. This should help ensure that future drilling
success is even better rewarded by the stock market than
would have been the case without these failures. Drilling operations
and site preparation have already commenced at Sidi
Toui under the supervision of Norwell Ltd., a major Aberdeen
based drilling project management and well control company.
Sector outperformer : While any potential risk adjusted valuation
for Petroceltic is still very subjective, its projects are
lower risk than many oil and gas exploration projects. Given
the current buoyancy of peer valuations in the sector and the
companys strong cash position, with a current market cap of
c.78m, we would continue to rate Petroceltic as a sector outperformer.
Petroceltics share price has risen by 240% since
our BUY note of 23/01/04 : Speculative BUY.

Good to find PCI's share price holding steady at this level. Also encouraging to see some chunky buys coming through, in particular 400,000 which appeared around 2.30 this afternoon.

Afternoon all,

Thanks for posting that Dolmen's note Grevis. Noticed a 600k delayed trade after the close, looks like a rollover to me. Also liked the 400k buy. :-) Looking forward to tomorrow!

what impact has a roll over in the price?? do they count perhaps on a later date? Please informe me. Thanks

Morning all.

Xmortal: would have thought it was already in the price, but when they close the position then I think it would affect the price. Anyone any other thoughts?

Morning all. Still holding steady. Bid was lifted to 16p earlier. Spread is very narrow. Barclays are quoting 16.03p to 16.10p. When these finally break out, the upward movement could be quite rapid.

http://moneyam.uk-wire.com/cgi-bin/articles/200409081235177405C.html

Well spotted Big Al. The RNS is as follows:

Petroceltic International PLC
08 September 2004

Petroceltic International plc ('Petroceltic' or 'the Company')

Petroceltic Extends Licensing Option


8 September, 2004

The Board of Petroceltic announces that it has decided to extend and take a 38%
interest in Celtic Sea Licensing Option 03 / 4 with the Island Expro Group
pursuant to an agreement originally entered into in October 2003. Licensing
Option 03 / 4 covers three part blocks adjacent to the Kinsale Head Gas Field
offshore Ireland and contains a prospect named 'Old Head of Kinsale' which has
similar geological characteristics.

The consideration for the 38% interest in the Licensing Option is the allotment
of 1,607,717 shares in Petroceltic to the Island Expro Group. The extension and
Petroceltic's participation is subject to ministerial approval and the shares
allotted to the Island Expro Group can not be traded until such approval has
been confirmed.

Application has been made to the London Stock Exchange for 1,607,717 New
Ordinary Shares of nominal value 0.0125 each in the capital of the Company to
be admitted to trading on the Alternative Investment Market of the London Stock
Exchange. Dealing is expected to commence in these shares on 13 September, 2004.
These shares rank pari passu in all respects with the existing Ordinary Shares
of the Company.



For further information contact:

Con Casey (Director, Petroceltic) +353 1 661 1245

Stephen Barry (Davy Corporate Finance) +353 1 679 6363



This information is provided by RNS
The company news service from the London Stock Exchange

North Africa is certainly the place to be:

First Calgary completes initial drilling of LES-1 well in Algeria

LONDON (AFX) - First Calgary Petroleums Ltd said the initial drilling
results of exploration well LES-1, an exploration well on the Ledjmet Block 405b
in Algeria indicates the presence of 60 metres of net hydrocarbon pay over
multiple geological intervals.
In a statement, the oil and exploration company said production testing is
anticipated to commence in late September as equipment becomes available.
President and CEO Richard Anderson said: "The wireline logs indicate the
presence of high quality sandstone reservoirs with excellent hydrocarbon
saturation."
newsdesk@afxnews.com

Thanks for that Big Al, missed it earlier. Grevis, what do you think about the Celtic Sea option? Another 1.6m shares to be issued. The Algeria news sounds good for FCP. Hope we can do as well in Algeria.

Hi Gavdfc: I'm not over excited about the Celtic Sea. North Africa is something else. With luck we will pass 20p when drilling is announced this month. Good luck!

Hi Grevis, yes you're right about the Celtic Sea not being the jewel in the crown here, Tunisia and Algeria are. Just a bit concerned about the new shares to be issued on 13/9. Hopefully they won't hold us back too much.

Guys,

Can't see 1.6m shares doing too much. It's only about half daily volume most days. MM's might use it as a "fear factor"!! If they pull it back, it might prove a good time to add with drilling potentially 3 weeks away????

;-))

Big Al,

Cheers for that. Looking at it this way, it's only about 0.42% of the shares in issue so hopefully it wouldn't hold us back.

Iam holding these long and have been enough to show profit.

Nice for a Ferengi

Morning all,

2004 Interim's out:

Petroceltic International PLC
09 September 2004


PETROCELTIC INTERNATIONAL PLC

Interim Report 2004

Chairman's Statement

To the Shareholders.

I have pleasure in presenting the interim figures of your company for the period
ending 30 June 2004, reporting on its activities during the period and providing
an update on recent acquisitions and current operations.

During 2004 Petroceltic has aggressively pursued its objective of value creation
for shareholders by acquiring high reward appraisal and exploration projects,
predominantly in the proven petroleum systems of the Mediterranean and North
African regions. Through the successful implementation of this strategy
Petroceltic has to date obtained material stakes in eight substantial oil and
gas prospects in four countries, Algeria, Tunisia, Italy and Ireland.
Individually each of these prospects has the potential to deliver significant
shareholder value. As of this date final preparations are in place to commence
drilling during the coming weeks on one of these prospects, Sidi Toui in
Tunisia. It is further intended to continue with plans for an active drilling
campaign on our other licence areas over the next fifteen months.

Highlights of the Period

Algeria. A major success was achieved in Algeria. In April 2004, the Algerian
State Oil Company, Sonatrach, invited Petroceltic to participate in the 5th
Algerian International Licensing Round. Being invited to bid was a direct
consequence of our technical knowledge and our strong operational presence in
the region. In July Petroceltic's bid was successful with the award of the
10,000 square kilometre Isarene block in the prolific Illizi Basin in Southern
Algeria. There have already been six successful discovery wells drilled within
the Isarene licence block, which have demonstrated the presence of three
distinct hydrocarbon reservoir targets (HTT- gas, F6-oil and F2 -gas).
Sonatrach, our 25% partner, has represented that the HTT and F6 targets contain
existing discovered reserves of approximately 380 billion cubic feet (bcf) of
gas and 28 million barrels (mmbbls) of oil with potential gas and oil reserves
of up to 4 trillion cubic feet (tcf) and 400 mmbbls respectively. Petroceltic
has carried out its own in house analysis of the previous drilling results which
supports Sonatrach's evaluation of these discoveries and also concludes that the
third reservoir, the F2, which has flowed gas on test from five wells within the
block, has the potential of an even greater gas reserve. We intend to pursue a
very active exploration and appraisal drilling programme on these prospects.

Tunisia. An extensive geotechnical evaluation has been undertaken since the
Production Sharing Agreement over Petroceltic's Ksar Hadada block in southern
Tunisia was signed at the end of 2003. This work includes re-surveying the area,
acquiring new satellite images, reprocessing and mapping of seismic and well
data. It has confirmed the integrity of the large Sidi Toui structure and
defined one other large prospect and several leads within the contract area. A
land rig contract has been signed for one firm and one option well. Operations
are underway to commence drilling on the Sidi Toui structure in the next few
weeks.

Italy. In June 2004 Petroceltic agreed to acquire up to a 40% interest in two
very exciting license applications in Italy, one onshore, 'Civitaquana' and one
offshore D490 BR-RG. An unappraised oil discovery 'Elsa' was made in D490 BR-RG
in the early 1990's and more recently ENI the Italian oil major has drilled two
successful onshore wells Miglianico 1 and 2 on an adjacent licence. In house
evaluation has confirmed two structures on the D490 BR-RG block, up dip and
contiguous to the Miglianico wells. According to our own analysis and an
independent evaluation, these structures have the potential to hold more than
300mmbbls of recoverable oil.

Ireland. Petroceltic and its partners have conducted a detailed technical
review of the license option area, which is to the east of and adjacent to the
Kinsale Gas Field complex. Results from this study are encouraging, confirming
our initial view that the 'Old Head of Kinsale' structure has similar geological
characteristics to the Kinsale Gas Field. Negotiations to secure the option area
for further seismic and possible drilling are underway.

Funding. During the period your company raised a total of $12.5 m through a
successful share placing mainly to institutional investors. Net Cash Assets as
at 30 June 2004 totaled $14.6m.

Financial Results. Operating profits were $33,000 (2003 $69,000) Income from the
Kinsale Gas Royalty was $266,000 (2003 $168,000) Importantly we received an
adjustment of the 2003 Royalty payment of $61,641 or 25%, which reflects the
fact that the major deductions for Royalty payment calculations have expired.
This means that for the first time in over 25 years of Kinsale gas production,
the Royalty has been paid at a higher level than the minimum of 2% of gross gas
sales. Operating and administration costs for the period were $519,000 (2003
$109,000).

Throughout the period we continued to examine and review a large number of oil
and gas opportunities. We have established in less than one year a substantial
presence in North Africa and Italy. North Africa is attracting increasing
interest and investment from the international oil and gas community. We believe
that we have placed the company in a strategically advantageous position to
capitalise on our expertise and relationships in this area.

The activity in the company over the last six months is a reflection of the
number of people whose contribution has been important to the success that we
have achieved. In particular I would like to mention the efforts of our Chief
Executive, John Craven who was instrumental in the Company increasing its
portfolio of interests. I look forward to the future with confidence and I
believe that we are in a position to further expand and develop your company.

Brian Cusack
Chairman
9th September 2004

Financial Information (Unaudited)

June 30th 2004 June 30th 2003
US$000's US$000's
Turnover 266 168
Interest Received 125 1
Gain on Disposal of Investments 133 67
Foreign Exchange Gain 114 -
638 236

Administration and Operation Expenses (519) (109)
Amortisation and Depreciation (86) (58)
(605) (167)

Profit Before Tax 33 69

Profit Attributable to shareholders 33 69

Earnings per share - in cents .01 .02

The accounting policies applied in the preparation of the interim results is
consistent with those used in the preparation of the statutory accounts for the
year ended 31st December 2003. A dividend is not proposed for this period.

These results were announced to AIM on 9th September 2004 and posted to all
shareholders on the register at 9th September 2004. Copies of this interim
report will be available from the Company's registered office at 14 Upr
Fitzwilliam Street, Dublin 2.

OPERATIONS

ALGERIA

Algeria is a country with prolific oil and gas resources. According to the EIA
the country has reserves of 37.9 billion barrel of oil equivalent, and is the
world's 16th and 6th largest producer of oil and gas respectively. It supplies
22% of Europe's gas via three trans-Mediterranean pipelines to Italy and Spain
and ships Liquid Natural Gas to the United States. Sonatrach, the Algerian
State Oil Company, one of the largest oil and gas companies worldwide.

Against this background Petroceltic has focussed on seeking oil and gas
opportunities in Algeria and on 29th July, Petroceltic was awarded the Isarene
Permit (blocks 228 & 229 A) in the 5th Algerian International Licensing Round.
Other successful bidders included Amerada Hess, Statoil, Sinopec, BHP, Woodside
and Repsol.

The Isarene Permit is located in the prolific Illizi Basin of southern Algeria.
This basin contains giant producing oil and gas fields including the Tin Fouye
Tabenkort oil and gas field, located less than 100 kms to the north. The permit
area is over 10,000 sq kms.

In 2004 money terms over $100 million of seismic and drilling has been
undertaken by previous operators in the blocks resulting in six gas discoveries
flowing at well rates of up to 25 million cubic feet of gas a day from several
Palaeozoic reservoirs. Other wells drilled in the northern permit area have had
oil flows. All of this data is available at no cost to Petroceltic and will form
the foundation for future near tem exploration and appraisal programmes.

Information provided by Sonatrach, Petroceltic's 25% partner, states that there
are existing discovered reserves of 380 billion cubic feet (bcf) of gas and 28
million barrels of oil with possible resources of 4 trillion cubic feet of gas
(tcf) and 400 million barrels of oil. Petroceltic believes that another
reservoir target, the Devonian F 2, has the potential to host substantial
further gas reserves.

Compared to other regions of Algeria, target reservoirs are at shallow drilling
depths and therefore relatively less expensive to explore and exploit. The
permit area is less than 100 kms from established gas transportation and
processing infrastructure. Your Company believes that resources therefore can be
proved up and commercialised quickly and at relatively low cost.

The Isarene Permit will be operated through a production sharing contract ('PSC
') with Petroceltic (operator) and Sonatrach as 75%/25% partners, respectively.
Importantly the PSC allows Petroceltic and Sonatrach to jointly market gas from
Isarene outside Algeria. The PSC is scheduled for final execution on 25th
September 2004 and will include a firm commitment to drill one well estimated to
cost $5 million. The company is reviewing its plans and its preliminary
intention is to drill a number of wells in 2005.

TUNISIA

Since the execution of its Agreements over the Ksar Hadada contract area in
December 2003, Petroceltic has concentrated its efforts on a full geo-technical
evaluation of the acreage as a necessity to position our first exploration well.
Firstly existing seismic and well data has been obtained from the Tunisian
authorities, new satellite images purchased and the area has been resurveyed.
Over 200 kms of seismic has been reprocessed and a workstation interpretation
has been completed.

This evaluation has confirmed Petroceltic's initial views on the potential of
the acreage and in particular the Sidi Toui prospect in the southern part of the
licence. Our seismic interpretation clearly demonstrates that the Sidi Toui 1
well, drilled in 1959, was drilled considerably down dip from the crest of the
structure and that the follow up well, Sidi Toui 2 was located over a large
subsurface fault where the target Ordovician reservoir was absent. As such the
location of our planned Sidi Toui 3 well has been carefully chosen to encounter
a full section of the Ordovician sequence in a crestal position approximately 4
kilometres south east and up dip of the oil encountered in Sidi Toui 1. It is
also interesting to note that the highest part of the Sidi Toui structure is
expressed as a surface high known locally as Jebel Sidi Toui. Although only
modest in height it nevertheless is very distinct in what is generally a flat
desert terrain.

A second Ordovician prospect, named Oryx, has been identified approximately 25
kilometres south of Sidi Toui. Final technical evaluation is nearing completion
over this prospect in order to select an optimal drilling location.

Petroceltic has executed a drilling contract with Great Wall (a subsidiary of
the Chinese National Petroleum Corporation) to provide a land rig for one firm
well with a second optional well and Norwell Engineering in Aberdeen has been
engaged to project manage drilling operations. Environmental studies have been
completed.

Sidi Toui 3 is to be Petroceltic's first operated well. It will be drilled in
the coming weeks to evaluate the large Sidi Toui fault block structure, which is
capable of hosting up to 400 million barrels of oil reserves.

In recent months a number of new discoveries have been made in southern Tunisia.
Encouraging for Petroceltic is that these wells have tested hydrocarbons from
Palaeozoic reservoirs similar to the targets in Ksar Hadada. Your company
continues to monitor other opportunities in Tunisia.

ITALY

In June Petroceltic agreed to acquire an interest in two licence applications,
D490 B.R-RG (Miglianico East) and Civitiquana, from Rigo Oil and Vitorito
Petroleum, two small Italian oil and gas companies. Both applications have been
approved and the Italian authorities have provisionally awarded licenses. Final
gazetting of the licences is expected in Q 4 2004.

Miglianico East (Offshore)

Petroceltic has acquired a 15% interest in this licence application and
subsequent licence, with an option to increase to 40% together with pre-emption
rights over additional interest. The block is located in shallow water adjacent
to the Italian coast in the Adriatic Sea east of Rome. A consortium led by
Italian oil major ENI AGIP previously held the area and drilled a discovery well
on one of the structures (Elsa) in the early 1990's. For various operational,
technical and consortium reasons the discovery was not appraised by further
drilling and the licence was subsequently relinquished. More recently on a
licence west of and contiguous to Miglianico East, AGIP drilled two successful
oil wells, Miglianico 1 and 2, which are now on production. These wells are on
trend and down dip from the two identified prospects in the application area,
named Miglianico East and Elsa...

Rigo Oil has commissioned a competent persons report on both application areas.
This report concludes that the prospects in Miglianico East area have P 50 oil
reserve potential of 182 million barrels (P 10 of 567 million barrels) with a
probability of success of 23%.

We intend acquiring and reviewing all the technical data on the licence with the
intention of advancing the prospect towards drilling in 2005.

Civitiquana. (Onshore)

Petroceltic has acquired a 40% interest in this licence. It is onshore and East
of Miglianico East and is at a much earlier stage of geological evaluation. We
are accumulating all the available data for review. The competent persons report
assesses this prospect as having similar potential as Miglianico East but with a
probability of geological success put at 10%.

IRELAND

In October 2003 Petroceltic executed an agreement for an option to obtain a 38%
interest in Licensing Option 03 / 4 covering three part blocks adjacent and to
the east of the producing Kinsale Gas Field, offshore Ireland. At this time two
potential prospects 'Old Head of Kinsale' and 'East Kinsale' had been identified
in the Licensing Option area but it was decided at this time that both required
detailed technical evaluation before a decision to drill could be made.

The option period in the agreement was timed to allow the evaluation process to
be completed by August 2004. The main conclusions are that in terms of
reservoir target and structural style the Old Head prospect has similar
characteristics to the Kinsale Gas Field. Island Expro Limited, a partner in and
operator of the Option blocks, has estimated that Old Head has gas reserve
potential of 600 billion cubic feet. In terms of size, however, the East
Kinsale prospect is considerably smaller.

Given the encouragement related to the Old Head prospect Petroceltic has elected
to take up the 38% interest in Licensing Option 03 / 4 blocks and to seek the
approval of the Minister to extend the period of the Option to allow further
studies to be undertaken prior to drilling.

Through its interest in the Kinsale Gas Royalty, Petroceltic has gained
considerable technical and commercial knowledge of the Irish gas market and will
continue to seek further opportunities in this business.


This information is provided by RNS
The company news service from the London Stock Exchange