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Market: AIM
Sector: Energy
EPIC: PET
Latest Price: 4.63p  (0,00%)
52-week High: 16.50p
52-week Low: 4.63p
Market Cap: 3.55M
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Petrel Resources
www.petrelresources.com
Petrel Resources is an Irish and London listed oil Exploration Company that listed on the Alternative Investment Market in August 2000. The focus of the Company's operations is in Iraq, where it has been seeking an agreement to develop three existing oil fields in Southern Iraq while applying for exploration acreage in the Western Desert.

Petrel have had a presence in Baghdad for years and have successfully built a strong Iraqi and international team and negotiated with the Iraqi Oil Ministry including the first and largest contract awarded since 2003. As part of the regional cooperation and the technical work that has been undertaken in the region, our staff has gained knowledge of the petroleum systems of the Arabian Peninsula and this has led to the pursuit of select opportunities in neighbouring countries.
Full Petrel Resources profile here
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Petrel to take part in Iraqi licencing round as Subba and Luhais project nears completion

13th May 2011, 7:33 am by Giles Gwinnett The Subba and Luhais JV company has paid the firm the final US$2.5 million due - in relation to engineering, procurement and supervision of services on the site

Petrel Resources' (LON:PET) progress in Iraq received a boost as the firm announced it had received the final payment for the Subba and Luhais oilfield.

The Subba and Luhais JV company has paid the firm the final US$2.5 million due - in relation to engineering, procurement and supervision of services on the site.

It means Petrel is now applying to take part in the recently announced fourth licensing round in Iraq.

Specific blocks have been identified, with a focus on the oil-prone acreage becoming available from January 2012, said the company.

The firm's plan to rapidly develop Iraqi oil has been hampered by the lengthy process of the new government being formed.

"The Subba and Luhais project is now nearing successful completion, after the parties overcame operational obstacles," said managing director David Horgan.

"Successful delivery of all equipment and services to site, without injury, loss of life or equipment is a major achievement for everyone involved with this important project."

He added: "We maintain a 10% profit interest in the project, but the prevailing circumstances in Iraq, especially delays and materials inflation, means that any profit is likely to be small."

Horgan went on: "We have identified specific targets in the blocks included in the fourth hydrocarbon licensing Round.  Petrel is now completing a detailed submission to the authorities. The closing date for application is 19th May. The blocks on offer are interesting for gas and oil but do not include the 10,000km2 area known as 'Iraqi Western Desert Block 6'.

"A successful election in March 2010 led to many months delay in the formation of a new government, which in turn hampered the planned rapid development of Iraqi oil.

"A new administration has taken charge, and remaining issues are being resolved. We expect renewed progress in the coming months to drive forward the development of Iraq and particularly its hydrocarbons industry, to the benefit of all stakeholders. We have a strong balance sheet with over US$6m in cash and are well-placed to take advantage of opportunities."

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