Update of Activities

Celtic Resources Holdings PLC
10 May 2002



                         Celtic Resources Holdings Plc

    Update of activities at the 980% owned Tamdykol oil project, Kazakhstan


Celtic Resources Holdings Plc (CER), quoted on the ESM of the Irish Stock
Exchange, today provided a market update on their 90% owned Tamdykol Oil Field
project, located in the Aktobe Oblast in Kazakhstan.


Two wells were drilled, completed, and tested during late 2001 and despite
indications of oil of up to 3%, both proved non-commercial and tThe 1A and 2A
field appraisal wells were drilled through the base of the Lower Jurassic
interval into the top of the salt to depths of 162m and 128m respectively. Both
wells were logged with results which led to subsequent completion and testing
operations as followshe company is now undertaking high resolution 2D seismic
across the field in an effort to determine the potential of oil accumulations in
the deeper Jurassic intervals.


Well 1A


The 1A field appraisal well was drilled through the base of the Lower Jurassic
interval into the top of a salt dome to depths of 162m. Logging results for well
1A indicated 15m of net pay intervals between 76m - 91m located in the Lower
Jurassic. The cut offs used for determining net pay were 16% porosity with
greater than 60% oil saturation. Well 1A was perforated between this interval
and put on extended test. Testing operations were recently concluded to be
non-commercial as the well produced an average rate of 128 barrels water per day
with traces of oil. All operations were carried out safely as per program in a
cost effective manner using a combination of local and western contractors.


Well 2A


The 2A field appraisal well was drilled through the base of the Lower Jurassic
into the top of the salt to depths of 128m. Logging results for well 2A
indicated 6m of net pay interval between 114.5m - 120.5m located in the D
reservoir in the Lower Jurassic. Well 2A was also perforated between this
interval and put on extended test. Testing operations were recently concluded
with the results indicating the well to be non-commercial as it produced an
average rate of 135 barrels water per day with traces of oil. All operations
were carried out safely as per program in a cost effective manner using a
combination of local and western contractors.


Interpretation of Results


Both wells were drilled in crestal locations on top of the Tamdykol salt dome.
Results indicate that the migration of hydrocarbons in the sediments which
overlay the top of the salt leaked up conductive fault planes which intersected
the surface and vented off into the atmosphere. Once the water phase of the
migration fluid intersected argillaceous (clay) intervals very near to the
surface they hydrated these intervals and created a shallow top seal.


Hence, the presence of quantities of oil very close to the surface was confirmed
but however the absence of commercial quantities of oil in the Lower Jurassic
intervals between 70m - 140m was also confirmed.






Seismic Program on Deeper Horizons


Based on this information, The decision has been made recently to suspend
drilling for the time being and Celtic has decided to shoot 81 line kilometres
of high resolution 2D seismic across the field in an effort to determine the
further potential of oil accumulations in deeper Jurassic intervals, along the
flanks of the salt dome and to further investigate a salt over hang termed as a
"sub-salt" play located to the north. Seismic operations have began this month
begun this month with the mobilisation of the topographic survey team followed
by camp and crew.


When asked about the future potential of the Tamdykol Oil Field, William
Kelleher, Celtic's Executive Vice President, it's Oil and Gas Division, remarked
said, "The crestal locations in Tamdykol were always our first targets to
identify the presence of hydrocarbons given their relatively shallow depth and
low cost to drill. WeHe went on to say, "Weneeded to prove that the timing of
hydrocarbon migration matched the analogue in the region to narrow down the risk
to trap and seal. If Provided that the reservoir quality along the flanks of the
salt remains constant, and the fault planes do not intersect the surface and are
sealing faults, the chance of larger commercial oil accumulations exists in the
Lower Jurassic intervals."


Recent reprocessing of regional seismic shot in the area, in addition to local
interpretations of existing log data, had also uncovered a further good prospect
on the north side of the Tamdykol salt feature that appears to be a salt
overhang. Salt overhangs are a highly prospective means for trapping and sealing
hydrocarbon reserves. Sub-salt overhangs within a 150 km radius of the Tamdykol
Oil Field have produced some 200 million barrels of recoverable oil reserves in
the last 14 years.


Mr. Kelleher further stated, "Both issues relating to the structural, (fault),
interpretation in the shallow Jurassic intervals along the flanks of the salt
dome at Tamdykol, as well as the presence and geometric features of the salt
overhang to the north will become more apparent after the results of the
upcoming seismic program. We will have a much clearer indication of future
drilling locations once the seismic program is completed."We will have a much
clearer indication of future drilling locations once we have concluded our
seismic interpretation in late June this year."


Total project costs to date are US$342,400 and are not expected to exceed
US$400,000 by late June, when the seismic program is completed.



For more information please contact



Kevin Foo / Claire Bolton                Leesa Peters / Cindy Dennis             Maeve Governey /

                                                                                 Rachel Watchorn
Celtic Resources Holdings Plc            Capital PR                              Heneghan PR
Tel: + 44 (0) 20 7593 0001               Tel: + 44 (0) 20 7618 7889              Tel: + 353 1 660 7395
[e-mail]         [e-mail]                     [e-mail]





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