Petrel Resources PLC
22 July 2005


The following statement was made by the Managing Director at the AGM,
Dublin, 12 Noon July 22nd 2005


Petrel is in discussions to extend its area of exploration interest in Iraq. Any
new acreage will be under the transitional Technical Cooperation Agreement
developed by the Iraqi Ministry of Oil, while the new elected government
determines future energy policy.

Petrel's study of the East Safawi block in Jordan close to the Iraqi border has
been positive. We are moving to the next stage by deepening our analysis and
negotiating a Production Sharing Agreement with the Jordanian authorities. Once
a satisfactory agreement is in place a work programme will commence. This
programme is likely to include seismic and one or more wells once we are
satisfied with drilling locations.

Our partners, including many of the world's premier suppliers, continue to give
excellent support. This week Petrel engineers submitted detailed technical
clarifications on the Kormor Gas Project tender in northern Iraq to the Ministry
of Oil.

We understand that Iraqi Ministry of Oil officials are satisfied with technical
and commercial clarifications to our Subba & Luhais oil field development tender
of late 2004. Last week we signed a Memorandum of Understanding with GE on the
Subba & Luhais project. Both the Kormor and Subba & Luhais projects are in
relatively stable areas where it is still possible to work. It is not practical
to work in the central and western region presently.

Petrel has received, despite requests, no official confirmation of the awards of
Hamrin and Khurmala projects. Based on industry sources and media reports, we
assume these are gone.

Subba & Luhais remains our priority oil project, as it has been since 1999. We
continue to conduct regional work on Western Desert Block 6 and neighbouring
areas. Despite security challenges, we remain committed to expand our Iraqi
activities.

All resolutions were passed at the meeting.


Contact

David Horgan + 353 87 292 3500
John Teeling + 353 1 833 2833
Jim Finn + 353 1 833 2833


Bell Pottinger Corporate & Financial

Nick Lambert + 44 (0)7811 358764


Rowan Dartington

Barrie Newton + 44 (0)117 933 0011


This information is provided by RNS
The company news service from the London Stock Exchange

yep, positive news after a period of uncertainty

Where is this one going???? I think everyone's patience is running out but wouldn't it typical to get contract after selling.......

Investors Crashed and burned last year. Iraq is in flames. Sarqawi is a Jordanian. Sell and buy Regal or a dozen others

something afoot?

up 12% already so far. something about to be announced perhaps?

Fingers crossed I've been v v patient with this one and still kicking myself for getting greedy and not selling at 130p+ after originally buying at 37p....

A profit is a profit, having made the same mistakes with others of the Teeling Family noteably PRE, I have not had to learn that again.

Good luck PET's after all this time you lot deserve some.

not been able to find any specific news, apart from general uncertainty about the future of oil prices...

now up 15%

UP 15.5% NOW????????

ONLY 13.8% NOW SPREAD INCREASED AGAIN...............

And up again today.

Now up 18% today alone... is there anyone out there? i know people have been burnt with this one, but i'm interested to know thoughts on the recent move up.

I just noticed that BLT on advfn had posted that it was up 32% in Berlin, that is correct it has now caught up UK prices with that leap, the ask is 41p.

So, what news from the Camp Teeling?

What was the volume on the Berlin Bourse to create that rise ????

If it went up on paltry volume, it will come back down again just as quick, if no news comes out, as has been the case MANY times before with this stock.

Why would Berlin buyers rush to get PET ????

If there was any news or rumour, it would be on the UK market in no time, not in Berlin ....

Cheers,
PM

bizarre. i did see some cr*p about attempts to ramp oil prices as a result of the crisis in america, but i can't believe that would cause the rise - besides, why pet anyway?

will post here if i find any concrete info.

Skids Hi,

Your more likely to find concrete, than PET are to find oil :))))

Cheers,
PM

lol

Anyone any idea why this is up again and nearly 50% increase in a couple of days? Is there something going on behind the scenes?

Check out BLT's postings in the ADVFN board - some specualtion re Jordan. However, this time I suspect something good will come out of this - just a feeling so please don't hold me to it!. This share is very speculative and at times very exciting but please DYOR and good luck to all investors.

still rising ....

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

indeed wilbs

just look at price go wow
Petrel Resources PLC
07 September 2005


SHAREHOLDER UPDATE


The Iraqi Ministry of Oil has informed Petrel Resources that Petrel has been
awarded the Subba and Luhais oil field development service contract. The project
is to develop existing proven reserves as contractor to the Ministry of Oil. The
contract envisages daily production of 200,000 barrels of oil and 100 million
cubic feet of gas.


John Teeling, Chairman, said 'We are absolutely delighted to be successful in
the tender for Subba and Luhais. I hope that this is only the beginning of a
long and fruitful partnership between the Iraqi oil industry and Petrel.
Congratulations and thanks are due to David Horgan, Mahmoud Ahmed and their team
for their years of dedicated work.'


David Horgan, Managing Director, commented 'The contract for $197 million, is to
develop the Sabba and Luhais fields from under 50,000 barrels of oil to over
200,000 barrels of oil daily within a

At long last!! The news we have all been waiting for. Tree shake time and im sure there will be loads of press coverage tomorrow and maybe back upto 160p.

it may not rise to that level just so quickly IMO. i've taken profits just to be safe. good luck to those that stay.

got these @111 nearly sold them @26 the other day was fed up waiting, right now have just cracked the whiskey bottle open, gonna sit back for a little ride on the big dipper (there must be a God) cheers to all holders who waited
Mort

Hit 130p on hint of a deal last year, now awarded the biggest contract in the countries history, people will wake up in the morning with SP above 300p

We still have DH & gang over in Jordan at the moment working on the Jordanian PSA (agreement), once an RNS is released announcing this deal, we shall be looking at 1.50+.

Well done to all those who stayed in, as it certainly has been a roller coaster ride!!!


good luck all

Tokyo

Tokyo: Patience is a virtue they say, but particularly in the case of Petrel. I am glad holders and Directors have been rewarded so handsomely. Will wait to read the doomster posts now. JT

Nice to see you all succeed; just a thought, but why not take a profit and go into CHP. Even though it is up from 5p, a few of us believe it has some very good news to come out. Like you with PET we are waiting, but read the thread and see what you think.

Been in PET for nearly 18 months. Finally got sick of waiting for something positive on Monday. With a heavy heart I sold out.

: (

The above is somewhat understated.
The one consolation is that I'm enjoying the CHP hillclimb.
Does anyone have any meat to put on the bones of the contract award in terms of likely revenues and margins that PET will retain as a result of developing the oilfields?
Sick. Very.

All looking good here for holders.

Congratulations.

Deserved.

Mort and beasties I feel for you guys bigtime I nearly sold them myself recently after been in them for 19 months and I can't believe they finally came in...
Well done to everyone who was very patient especially those like myslef who kicked themselves for never selling them at 130+ before xmas

I still have mine @99. After the hype last year am still deeply troubled by the whole Iraq situation.
F

Bad luck Mort and Beasties and others who sold out recently, held these since April 04, I think David Horgan and his team deserve this success after all the hard work they have put in over the years, well done to them.

I used to look at this board all the time for weeks around the time it spiked. Got myself into a right state waiting for the "expected" mythical RNS that never came. Eventually decided my best course of action was to just not look on here and just hold until something concrete actually happened. Got impatient on Monday for no reason really.

Another lesson learned!
Well done to everyone who held, esp those who bought in when the sp was highest.

Am I right in thinking PET will make money from providing a service, as opposed to actually getting the stuff out of the ground and selling it? If it's the latter then the theoretical figures could look altogether intoxicating when you consider how much higher oil prices are now than when it all kicked off at the end of Sept04. And that would make a huge difference to whether the shares are still worth buying after today's excitement.

to all you Pets that are still in...as Del Boy would say
'He who dares wins'

In my humble opinion, the most liikely long term outcome of this now, is that as soon as it quitens a bit in Iraq, one of the majors will come in for Pet.
After all I really do think that it was ego that kept PET on the case in Iraq as they wanted to win that contract.
Thats what kept them going, but now I think that they have achieved what they prayed for....delivering is another issue
This is an awful amount of money to a small company and I think the easier option is to accept an offer, should one be forthcoming.
For those that are going to hang on in there, be prepared for a very bumpy ride on the PET rollercoaster...it may have lots of ups and downs in the coming months.
Hopefully 1.50 is not too far off

be lucky guys....PB

PB or anyone other followers of this story what sort of money do you think the majors would pay per share if things settle down in Iraq?

Hi All,

I put PET in my UK Stockmarket Challenge at the end of December last year, the competition involves picking your 5 top stocks for 2005, and you do not change them for a whole year.

I have been at No.1 in the copetiotion twice before,and today I moved back from 9th to 4th because PET went from a loss of 50% to a gain of 66% today :)

4 of my other stocks looking good to perform well right up to the end of December, not CDN by the look of things, but SEO, YOO, MMG and of course PET !

I tried buying PET online last week through IWeb, and couldn't get ANY .... oh well, I got LGB instead (66% up in one day !) .... :))))

Click the 2005 page, and details tab at the bottom :)

http://www.stockchallenge.co.uk/typo/stockchallenge/site/index.htm

Cheers,
PM

Toyko,
Good to see you are still about. Hope everythings ok with you and the family. Worth the wait but pet finally got there in the end.

wilbs

Wow ! What a difference to the portfolio - the malt will certainly be broached tonight.
The only reason I stayed in was my background experience of that area and its culture and negotiation style.
Not sure however whether a "major" would be acceptable currently - dont underestimate the Irish neutrality. My guess is that Teeling will stay with it for a while' or seek a partner (Canadian) for example who is politically neutral.
Thanks to Tokyo for his prompting last year

so what are people thinking likely bid price will be by end of tomorrow???

You all appear inspired.

Well done.

You all desreve it, and I know I am repeating myself.

Take a big pat on the back.

First few hours of trading will be interesting tomorrow after the newspapers have reported on this punt.

Hope we can get back to at least last year's SP of 130p+ that was based then on purely inspired speculation that reallistically at that time had no foundation.

Now that a solid contract has been ratified the company can now look forward to bigger future earnings and maybe further lucrative earning opportunities.

An interesting day coming up and now wondering what the Yanks think of this deal!!!!

Cheers,

Mike

Wilbs - good to see you are still here mate, I'm still holding on for a bit longer at least as I'm expecting to hear about the PSA in Jordan soon, the more contracts and PSA's they can get under their belt the more attractive they are for a take over bid, or at least alot more attractive for some of the investment houses to start buying up large chucks of stock, we saw a couple of big buys yesterday (or were they just short accounts being closed!!LOL)

sunray41 - you only have yourself to thank for staying in so long, well done pal good call

Mentions in, Unison IE Ireland, Irish Examiner, Guardian Unlimited, The Telegraph, This is Money, Sharecast and RTE News.
No doubt there will be weekend press follow ups. The institutions will also have another in depth look at Petrel.

Cheers Toyko. I sold out before but got back in a while back but not as much as I had before.
Heres a few snippets from the press.



08/09/05

Petrel wins Iraqi oil contract
By Claire Shoesmith
IRISH oil and gas exploration company Petrel Resources has won its first contract to drill for oil in Iraq.

The Dublin-based company said yesterday the Iraqi Ministry for Oil had awarded it a $197 million (158m) three-year contract to extract oil and gas from the Subba and Luhais oil fields near the Saudi Arabia and Kuwaiti boarders. Until now, Petrel has only been testing the fields and has not extracted any oil for export.

Managing director David Horgan said: This is a great moment for us. It is what we have been working towards for the past six years.

Shares soared after the announcement, tripling in value to 100.5 pence each.

Mr Horgan said that while the contract, which envisages daily production of 200,000 barrels of oil and 100 million cubic feet of gas, is to drill for oil proved to exist at shallow levels, the company hopes to extend the contract to include drilling at depth in the future.



The shallow levels alone are estimated to have at least one billion barrels of reserves and possibly three billion, he said. Work will begin almost immediately. The oil and gas will be transported to Basra and exported to the Far East.

He said the contract was a pleasing achievement because many in the industry expected it to go to one of the large multinational.

Petrel moved into Iraq during the fall of Saddam Hussein and has built up a valuable relationship with the Iraqi oil ministry.

Saudi Arabia is the worlds number one oil producer, extracting 9 million barrels a day, about 10% of world production. Mr Horgan estimates that Iraq, which currently produces about 1.4 million barrels a day, could match that.

The country has the largest unexplored reserves in the world, he said. Russia is the number two producer, but its supplies are at their peak and are expected to diminish going forward.

http://www.examiner.ie/pport/web/business/Full_Story/did-sgEmh8eigFCnYsgadLjt5C321I.asp

Among small caps, Petrel Resources stood out as its shares shot up 62p, or 170%, to 98.5p after it revealed it had won a contract to develop the Suba-Luhais oilfield in Southern Iraq.

http://www.guardian.co.uk/business/story/0,3604,1564955,00.html

Aim-listed Petrel Resources surged 62 to 100p after the oil exploration group was awarded a $197m oil development contract by Iraq's ministry of oil.

http://www.money.telegraph.co.uk/money/main.jhtml?xml=/money/2005/09/08/cxmktrep08.xml&menuId=242&sSheet=/money/2005/09/08/ixfrontmarkets.html
wilbs

Thanks Wilbs - should add a few pence on the opening bell, and then up and onwards!!

App its on two pages of the financial times page 24 and back page.

From over the road.
Whole huge articel in Mail, they reckon further contracts, say Pet has two year lead over others, will PET get snapped up. Buy the Mail quick brillliant articel

From Daily Mail online

Investors rewarded for faith in Petrel

Geoff Foster on Yesterday's Trading, Daily Mail
8 September 2005
YOU have to have nerves of steel to be a shareholder in Petrel Resources. The speculative oil exploration company ruined many family Christmas celebrations last year by crashing to 27p (from 97p) on an unconfirmed agency report that it had lost out on the first post-Iraqi war oil development contracts to Turkish and Canadian firms.

Petrel failed to clarify the situation, and so hundreds of private investors nervously sold and lost a packet. Those with deeper pockets, or gung-ho patience, held on amid hopes that the worm would turn. Yesterday it did.


Petrel gushed to 103p before closing 62p higher at 98p on the long-awaited announcement that the Iraqi ministry of oil has awarded it the 107m Subba and Luhais oilfield development service contract.

The contract envisages daily production of 200,000 barrels of oil and 100m cubic feet of gas.

All of the major oil companies would love to be in Iraq, but it will take them at least two years to get involved.

Petrel is the only European company with a foot in the door. Its relationship with the Iraq oil industry should prosper, and other contracts should follow.

Iraq is the least-explored of the oilrich countries. It has the world's second largest oil reserves, and new exploration will probably raise it to 200bn -300bn barrels of high-grade crude, which is extraordinarily cheap to produce.

There should be a gold rush of profits for oil in the post-Saddam era and Petrel has a head start.

wilbs

happy to be another holder.

watcher

pet applied for several contracts, i suspect there is more to come

Why is the price so low, it should be 120p today.

Stop losses being triggered and small PI's selling out with a small profit? I think the MM want this stock and at a cheap price cos they know whats coming if PET get something else & then poss the instutions will want in.
Well thats my opinion.

petrol is in heavy demand winning a contract in iraq means the share price will go over the roof maybe 10.00 pounds in a short time

I cant see it hitting that azad. It would be nice though.

Azad, does your last post mean that the renewed ramping of PET has already officially started?
LOL

azad..... 10.00 pounds!!!! errr... wake up.

azad - Even as a keen PET supporter, I can't see 10 pounds. In the short term after the Jordanian PSA we may see 2 pounds+.

10 pounds is years away, after they have Profit Sharing Agreements in place with the Iraqis and are pumping out alot of oil. If you are still around for that, then power to you man!!!

Agree Toyko. This time last year the thread was buzzing and a sp of 500p was flying. Realisticly I see 200p. As DH is in Jordan at the moment, he may have some more good news next week. Well, lest hope so.

Me too Wilbs, as I'm all for locking in profit, but until DH comes back from Jordan with what we all know shall be a PSA as both sides had previously expressed such an interest, it would be crazy to sell. A few more days and a lot more cash is my view

Did you sell any on the drastic fall? I remember you were the topup king at the time!! Its taken time but I can't see any downside.
This is from the charimans statement.
'We continue to be encouraged by the Oil Ministry to submit tenders for new projects. In April 2005, we submitted a multi volume tender to develop the Kormor field in Kirkuk'.
Has this tender been awarded yet?
Im sure this is the first of many awards of contracts that PET will tender for and win.

Hey Wilbs, guess it is just us on here at the moment, Kormor has not been awarded yet.

Managed to get out last year before the big fall, and then bought back in, and have been topping up all the way until last week when I got my last lot at 29pence
I haven't sold any today, as I realistically see an SP of 150-200 as soon as the Jordanian PSA is announced.

with two big deals under their belt, PET will look even more attractive as a take over bid or for a long term investment by one of the larger financial houses. either way as PI's we win!!!

Totally agree Tokyo. As its just us at the mo I think its only right to get the old thread back? There were some good discusions on there. I will now retrieve it.

Out all day at County Show - Just back.
I never offer advice but go slower on the aspirations guys
The last thing Teeling wants right now is a backlash from the locals on any suspicion of fast bucks. Keep it controlled, think what an Iraqi would see as OK
Just let it happen - time is on our side
PS A single thread would be a good idea.

Wait until Jordan news and remining bid potential - put that with oil staying in region of current prices and 10 maybe a bit high target but I don't think 5 is... certainly before end of year.

From oilbarrel.com today ....

Petrels Patience Rewarded In Iraq As It Wins Subba/Luhais Redevelopment Contract

Its been a long time coming but AIM-quoted Petrel Resources has at last been awarded the service contract for the redevelopment of the Subba and Luhais oilfields in southern Iraq. This is a real coup for the Irish oil minnow and rewards many years of patience and hard work.

Weve been working on this for six years and weve been though four different governments in that time, managing director David Horgan told oilbarrel.com. Under this new government the whole atmosphere has really changed and they are desperate to increase production and get more projects signed up.

The aim of the project, understood to be the largest brought to tender in the country, is to increase production from the fields from under 50,000 barrels per day (actually thought to be running at around 25,000 bpd at the present time) to 200,000 bpd and 100 million cubic feet of gas per day within three years.

Petrel will act as a cash contractor on the US$197 million engineering, procurement and construction project. Some of the cash will be upfront and placed in an escrow account (to be released to suppliers of bespoke equipment, for example) with the remainder paid in tranches as key milestones are reached.

The terms are not ideal: most oil companies prefer production sharing arrangements to manage their risks and ensure a bigger slice of the upside. For now, however, service contracts are all that are on offer in the volatile country, although this could change further down the line. In terms of working capital, Petrel would prefer to debt finance the project to reduce the equity dilution for shareholders, said Horgan.

The 200,000 bpd production target is reckoned to be very do-able from what is reckoned to be a billion barrel resource, a number that could be a major underestimate.

We would love to drill the deeper horizons, said Horgan. All of the reserves and production are from the shallow tertiary reservoirs but the really large fields in the region, across the border in Saudi, are from the Mesozoic, which has not been drilled at all in this area.

Theres no doubting Iraqs geological attractions to oil prospectors. Politics, sanctions, war, security and religion, however, have taken their turn in recent years to depress production and, post-war, curb new investment: Petrel, for example, appeared to lose out on the Khurmala Dome and Hamrin oilfield redevelopment tenders last year due to political expediency (although the company has yet to receive official confirmation about the status of these projects).

Yet it seems the company has now triumphed with the award of the Subba/Luhais contract, which Petrels chairman John Teeling has described as the biggest and the best of the three tenders to date. Horgan added that it was pleasing to see the ministry went for the best technical bid rather than the big name bid.

Indeed, it is a sign of its standing in the troubled country that Petrel has been asked to organised a seminar for 15 of the oil ministrys top financial experts to look at issues such as production sharing arrangements and how to deal with pre-war contracts.

This is, of course, an issue very pertinent to Petrel itself. The company holds a now suspended pre-war contract for the highly touted Block 6 in the Western Desert. It had been fearful its position there would be displaced under the new regime.

There were rumours that pre-war people would be out of favour but no-one has tried to displace us and the fact they were prepared to give us their most high profile development project shows the government has no issue with us, said Horgan. Its been a huge relief.

In fact, the company is already hoping to sign a technical operating agreement for another exploration area in Iraq. This area is hot both in terms of exploration and in terms of security at the moment, said Horgan. However the first six months would be spent reprocessing seismic and the like.

For now, the company is busy mobilizing resources to get to work on Subba and Luhais. Security issues in this area, while still requiring attention, are far more manageable. This is the place to be, said Horgan.

Is everyone still afraid of investing in Iraq or what? I can't believe the SP isn't in the 120-140p range at min with the contract news, price of oil and potential PSA - sure it hit 130+ just before xmas on pure speculation...

testing,
having a problem with this thread, when I try to read the messages all I get is a blank page ?