Petrel Resources (LON:PET) said this morning it had received the second tranche of payments relating to the development of the Subba & Luhais oilfield in Iraq.
The US$2.5 million is for hitting certain milestones and follows a US$2 million payment in April. A third and final instalment of US$2.5 million will follow in six months.
“The expected formation of an Iraqi government should clarify oil policy and enable Petrel to move forward with our Iraqi projects,” the company added in a statement to the stock exchange.
The group revealed in April that it had ended a 20-month stalemate with the authorities with a deal to complete the development on Subba & Luhais with local partner Makman.
After that it will hold a 10 per cent interest in the project.