Celtic Exploration Ltd. Closes Over-Allotment Option

CALGARY, ALBERTA--(Marketwire - April 16, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Celtic Exploration Ltd. (TSX:CLT) ("Celtic" or the "Company") is pleased to announce that it has completed the sale of an additional $22.5 million principal amount of 5.00% convertible unsecured subordinated debentures (the "Debentures") pursuant to the over-allotment option of the previously completed $150.0 million offering of Debentures (the "Offering") for aggregate gross proceeds of $172.5 million.

The Offering was made through a syndicate of underwriters, co-led by RBC Capital Markets and Peters & Co. Limited. The Company intends to use the net proceeds of the Offering to repay outstanding indebtedness and for general corporate and working capital purposes.

The Debentures are listed for trading on the Toronto Stock Exchange under the symbol "CLT.DB".

The Debentures offered, and the common shares issuable on conversion thereof, have not and will not be registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Advisory Regarding Forward-Looking Statements

Certain information with respect to Celtic contained herein, including the anticipated use of net proceeds from the Over-Allotment Option, contains forward-looking statements. These forward looking statements are based on assumptions and are subject to numerous risks and uncertainties, certain of which are beyond Celtic's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency exchange rate fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers, stock market volatility and ability to access sufficient capital. As a result, Celtic's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur. In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. Celtic does not intend, and does not assume any obligation, to update or revise these forward-looking statements except as required pursuant to applicable securities laws.