Petrel Resources PET.L
A new one to add to the 'have a look' list and possible recovery stock.
Petrel are operating in a very difficult arena - namely Iraq but also in Jordan. They have been working this area for a number of years now, building relations with the Iraqi people and the new government and importantly employing local people too.
If you look at a 5 year chart for the share it starts the chart at approximately 10p and then peaked at around £1.35 in early 2005 and then dropped back to 30p but has been trading in a 50-80p range for the last 2 years. It has suddenly started to move again in the last few days and with rumours that the Iraqi government might cancel their summer break to get things moving over there, then speculators could be forgiven for thinking that some contract announcements are imminent.
You have a lot of reading ahead of you if you are interested in giving this share a try, the website gives a good history and background to where they've been and where they are going, but like the man (David Horgan) says below - it's a risky play.
Today's price as at 11.00am 72p : 74p
In the last few days they have announced a PSA (production service agreement) with the Jordanian Government
RNS Number:8331V Petrel Resources PLC 01 May 2007
PETREL RESOURCES PLC
Petrel awarded Production Sharing Agreement in Jordan
PETREL AWARDED PSA BY JORDANIAN GOVERNMENT COVERING EAST SAFAWI BLOCK
HIGHLY PROSPECTIVE EXPLORATION TERRITORY, CLOSE TO PRODUCING FIELDS IN BOTH
Syria and Jordan
3 YEAR EXPLORATION PROGRAMME AGREED, COMMENCING WITH SEISMIC INTERPRETATION
and acquisition to define drilling targets
Petrel Resources, the AIM-listed oil explorer and developer operating in Iraq, has finalised a Production Sharing Agreement (PSA) on the East Safawi Block in Jordan. The PSA Effective Date will be May 1st when it will be published in the Official Gazette of Jordan.
The East Safawi Block forms part of the oil and gas prospective Arabian Desert. The East Safawi block adjoins the producing gas field at Risha and neighbouring oil producing blocks in Syria. The oil targets are in shallow formations and there are well-established gas plays at deeper levels.
The Jordanian Production Sharing terms are world class. The contractor receives 60% of oil production - or gas equivalent - up to 10,000 barrels daily, with a sliding scale to a 35% share of production over 100,000 barrels daily oil equivalent.
The agreement allows for a 3 year first phase exploration. Initial work includes seismic reprocessing and reinterpretation and new seismic. Targets identified will be followed up by drilling. Work already completed by Petrel on the block suggests a number of drillable targets. Drilling is expected to take place in late 2008 - early 2009, depending on operational developments.
Jordan is a stable constitutional monarchy. The Jordanian authorities are pro-business. Jordan is part of the Arab gas pipeline project and will be both a contributor and reliable access route for Middle Eastern gas exports to Europe.
Petrel Managing Director, David Horgan, commented:
'This is a good block, in a highly prospective area: the Arabian Desert has both oil and gas potential. With great terms already in place, we are starting work straight away, reprocessing and acquiring seismic to identify drilling targets.
Winning the East Safawi Production Sharing Agreement is the culmination of three years work with the Jordanian authorities. Terms are world-class, especially for oil. Jordan is an excellent business location: secure, friendly and pro-business, which geographically and geologically fits well into Petrel's Iraq-centred strategy".
PETREL RESOURCES PLC
Petrel awarded Production Sharing Agreement in Jordan
PETREL AWARDED PSA BY JORDANIAN GOVERNMENT COVERING EAST SAFAWI BLOCK
HIGHLY PROSPECTIVE EXPLORATION TERRITORY, CLOSE TO PRODUCING FIELDS IN BOTH
Syria and Jordan
3 YEAR EXPLORATION PROGRAMME AGREED, COMMENCING WITH SEISMIC INTERPRETATION
and acquisition to define drilling targets
Petrel Resources, the AIM-listed oil explorer and developer operating in Iraq, has finalised a Production Sharing Agreement (PSA) on the East Safawi Block in Jordan. The PSA Effective Date will be May 1st when it will be published in the Official Gazette of Jordan.
The East Safawi Block forms part of the oil and gas prospective Arabian Desert. The East Safawi block adjoins the producing gas field at Risha and neighbouring oil producing blocks in Syria. The oil targets are in shallow formations and there are well-established gas plays at deeper levels.
The Jordanian Production Sharing terms are world class. The contractor receives 60% of oil production - or gas equivalent - up to 10,000 barrels daily, with a sliding scale to a 35% share of production over 100,000 barrels daily oil equivalent.
The agreement allows for a 3 year first phase exploration. Initial work includes seismic reprocessing and reinterpretation and new seismic. Targets identified will be followed up by drilling. Work already completed by Petrel on the block suggests a number of drillable targets. Drilling is expected to take place in late 2008 - early 2009, depending on operational developments.
Jordan is a stable constitutional monarchy. The Jordanian authorities are pro-business. Jordan is part of the Arab gas pipeline project and will be both a contributor and reliable access route for Middle Eastern gas exports to Europe.
Petrel Managing Director, David Horgan, commented:
'This is a good block, in a highly prospective area: the Arabian Desert has both oil and gas potential. With great terms already in place, we are starting work straight away, reprocessing and acquiring seismic to identify drilling targets.
Winning the East Safawi Production Sharing Agreement is the culmination of three years work with the Jordanian authorities. Terms are world-class, especially for oil. Jordan is an excellent business location: secure, friendly and pro-business, which geographically and geologically fits well into Petrel's Iraq-centred strategy".
They also announced in September a strategic and co-operation agreement with Japanese oil company Itochu Corp, which will cover future oil exploration and development activities in Iraq.
The following presentation has just arrived on their website under Investor Relations and although is a large document is shows maps of the areas they are involved in with Iraq.
In the MD's statement from their own website http://www.petrelresources.com/_aboutPetrel/mdsStatement.shtml he states: (extract only)
"Doubtless there will be new challenges in the years to come. If shareholders are risk averse they should exit forthwith. If they share our vision and are ready to ride the inevitable waves we promise them an exciting journey. The opportunity is clear and competition from majors muted.
The past year has been challenging for participants in the Iraqi oil industry. The transition to an elected administration has also disrupted decision-making. Production and exports have stagnated. Security is a challenge even for those with deep roots in Iraq. We maintain an office and staff in Baghdad.
Delays and hazards are frustrating, but they also offer opportunity. So far major companies have limited their involvement to provision of generalised training courses and studies conducted from western countries.
Petrel has taken a pragmatic approach, conducting what work is possible within the constraints"
http://www.petrelresources.com/
Company Background
Petrel Resources is an Irish and London listed oil exploration company established in the early 1980s. The Company moved from London’s Ofex Market to the London Stock Exchange’s Alternative Investment Market (AIM) in August 2000. The focus of the Company's operations is in Iraq, where it had been seeking an agreement to develop three existing oil fields in Southern Iraq while applying for exploration acreage in the Western Desert.
Before the fall of Saddam Hussein, Petrel had signed a working agreement to explore Block 6 in the Western Desert. Iraq has known reserves of 123 billion barrels, the second largest repository in the world after Saudi Arabia which is believed to hold 265 billion barrels. But most of Iraq’s oil is in the east of the country. The Western Desert has hardly been explored. The Saddam Hussein authorities were keen for new exploration rather than the reworking of existing but run-down fields.
With the fall of Saddam, Petrel, whilst still mapping in Block 6, has dusted off its plans to revive two wells in Southern Iraq. It had completed, at a cost of $350,000, a feasibility study on these two fields, known as Subba and Lohais, located close to the border with Kuwait. These fields used to once produce 140,000 barrels of oil per day (bopd). Before the War they were down to 25,000 bopd. According to Petrel chairman John Teeling, by mid 2003 they were producing a trickle. They could quickly be bought back to a level where their output would be 100,000 bopd, Petrel believes.
Moreover, managing director David Horgan, in six visits to Iraq since the fall of Saddam Hussein, has looked at fresh fields in the north of the country. Petrel’s engineers have prepared a proposal to develop the Khurmala Dome of the Kirkuk oil field. Petrel has raised £959,500 by an institutional placing. This will cover the work involved here.
Petrel is confident it will receive the green light to proceed with the redevelopment proposals.
http://finance.google.com/finance?q=pet
Petrel Resources PLC (Petrel) is an oil and gas exploration company focused on Iraq and the Arabian Western Desert. In October 2005, Petrel signed an agreement with the Iraqi Oil Exploration Company to study the Merjan field located near to the city of Hillah. This is a discovered field with an estimated 760 million barrels of light crude in place. Petrel has continued to make progress on both its exploration proposal, Block 6 in the Western Desert, and on its tenders to develop oil fields. During the year ended December 31, 2005, the Company signed a memorandum of understanding (MOU) with the Jordanian authorities on the 8,750 square kilometers East Safawi Block, which adjoins the producing Risha gas field, close to the Iraqi border. In May 2006, Petrel made formal application to convert the MOU to a production sharing agreement.
162 Clontarf Road Dublin 3, IRL +353-1-8332833 (Phone)
Company website:http://www.petrelresources.com/ News Releases, Investor Relations, Corporate History/Profile, Executives
Don't stop at what I've posted links to on here; delve through the links and find the story for yourselves.
