Agreement with Investment Co.

CELTIC RESOURCES PLC
12 August 1999


CELTIC RESOURCES HOLDINGS PLC ('Celtic')

Celtic today announced that it has reached agreement with a UK based
investment Group, Redhaven Limited ('Redhaven'), which allows Redhaven to
subscribe for up to 13 million new Ordinary Shares of Celtic at par (IR2p),
raising IR£260,000 for Celtic before expenses.  The subscription in respect of
8.5 million new Ordinary Shares is partly paid in the amount of IR0.5p per
share; the balance is payable on or before 11 October, 1999.

On completion by Redhaven of its subscription for the 8.5 million new Ordinary
Shares of Celtic, Redhaven may also subscribe for an additional 4.5 million
new Ordinary Shares of Celtic at par.  It is anticipated that payment in full
for all of the 13 million new Ordinary Shares will be made on or before 11
November, 1999.  Payment of outstanding sums in respect of the 8.5 million new
Ordinary Shares may be deferred until 11 March, 2000.  In this case, Redhaven
will not be entitled to subscribe for the additional 4.5 million new Ordinary
Shares.

No application will be made to have these new Ordinary Shares admitted to
dealing until they are fully paid up and rank pari passu with the existing
issued Ordinary Shares.  In the event of the balance due on these shares not
being received by the due dates, the shares will be forfeited.

Redhaven also has an Option to purchase 5.51 million Ordinary Shares of Celtic
which are currently held by Dragon Oil plc ('Dragon').  The Option to purchase
the Dragon shares may be exercised in whole or in part until 11 August, 2000,
provided Redhaven has subscribed for all 13 million new Ordinary Shares of
Celtic by 11 November, 1999 and provided the exercise of the Option does not
require Redhaven to make a bid for Celtic.

For further information, please contact:

Sean Finlay
Celtic Resources plc                        353 1 661 1245

Hugh McCutcheon
Davy Corporate Finance Ltd                  353 1 679 6363

Nigel Heneghan
Heneghan PR                                 353 1 660 7395