Petroceltic wins permits offshore Italy

July 3, 2008 ROME -- Ireland's Petroceltic has been awarded nine exclusive exploration permits in the central Adriatic Sea, off Italy's eastern coast.

The permits, named d492 to d500, are adjacent to existing oil and gas fields that have demonstrated three working hydrocarbon plays, including the recent Ombrina Mare heavy oil discovery. Seismic data on the licence areas has indicated a number of prospects and leads. Petroceltic will now carry out further seismic surveying to determine locations for drilling. The licences have been awarded on a preliminary basis, and will be confirmed following Petroceltic's submission of an environmental impact study to the Italian authorities.Significance: The licence acquisitions are in line with Petroceltic's aim to establish a substantial acreage position off Italy's coast, an area with proven hydrocarbon deposits, but low exploration activity.

The region contains very heavy oil, with flows from the Ombrina Mare field testing at 17 degrees API, one of the reasons that interest in the area has generally been low. Petroceltic will hold 100% stakes in the nine licences, making exploratory drilling in the offshore area high-risk, but potentially high-reward for the company.

© 2008, Global Insight Limited.