2011-05-30-2011-04-28

To acquire 18.375% WI in Isarene production-sharing contract onshore Algeria in exchange for funding costs of 6 appraisal wells.

ENEL Trade SpA, a subsidiary of ENEL SpA, Rome, (Borsa Italiana: ENEL) plans to acquire an 18.375% interest in the Isarene production-sharing contract onshore Algeria from Petroceltic International Plc, London, (London: PCI) for US$36.75 million in cash.

ENEL's payment equates to 24.5% of all back costs incurred from signing of the contract with Algerian National Company for Hydrocarbons in 2005 until the end of the exploration period in April 2010. ENEL has also committed to fund 49% of the cost of the first six appraisal wells in an enlarged Isarene appraisal campaign and of a contingent additional well, which costs are capped, in aggregate, at US$145 million.

The appraisal wells include AT-4 which has been completed and the second well of the campaign, AT-5, is currently drilling the horizontal section.

The contract includes the Isarene perimeter (Blocks 228 and 229a) and features the Ain Tsila gas condensate discovery.

ENEL also agreed to pay Petroceltic a contingent cash consideration, up to a maximum of US $75 million, determined by the level of recoverable hydrocarbon reserves approved by the Algerian authorities in the final discovery report, which is expected to be submitted by the parties in early 2012.

On completion of the appraisal drilling program, or if the agreed budget limits are exceeded, Petroceltic and ENEL will fund any additional costs relating to the contract in proportion to their participating interests.

Pro forma, ENEL will hold an 18.375% participating interest in the PSC, Petroceltic will hold 56.625% and state-owned, Algiers, Algeria-based Sonatrach will hold the remaining 25%. Petroceltic remains operator for the permit.

Petroceltic chief executive Brian O'Cathain says, "ENEL is a well-established partner of Sonatrach, and their unparalleled knowledge of European gas markets will greatly enhance our ability to bring the Isarene gas to market. This transaction is a strong endorsement of the quality of the Isarene asset and an important financial support to our ongoing appraisal campaign and future development planning."