The tiny Irish stock on the brink of landing 'the first' post-sanction oil deal in Iraq. Ref 'Fleet Street Letter' 12-04-04..

Hello geeboy30.

I understand what your saying but even if they dont get a tender they still have all the priceless research which for any company who wins a tender will surely want as they will not want to spend years of doing research when they can simply obtain from petrel (for a price of course). Either way I think the shares will go up but how much? We will all just have to wait and see! David Horgan apparantly appeared on CNCB the other morning. Did anybody see it? What did he have to say?

Good luck everybody.

write-up and profile of david horgan in todays sunday times, or timesonline.co.uk
dexter

What did it say about Petrel?

Found it!

July 04, 2004

Interview: Daire O'Brien: Slick operator aims to strike it lucky in Iraq
David Horgan is convinced that Petrel Resources can help improve the dismal record of Irish exploration companies





DAVID HORGAN, the chief executive of Petrel Resources, the AIM-listed Irish company with Iraqi oil interests, was a bit of a schoolboy rebel. Not, however, the petrol-bomb the staff room variety; more the intellectually curious variety or, as that translates in Irish, a smartarse.

It was a characteristic that took him, as a 16-year-old, on a scholarship to private school in Canada, followed by Cambridge and Harvard.

Now, as a protof John Teeling and veteran of the Irish exploration sector, he is reminiscing on a career driven by that strange drug that drives rational businessmen to throw everything at a hole in the ground.

My parents thought I would have clashed with the Christian Brothers so they sent me to Newpark (Comprehensive) which was quite progressive in those days, he says. I prospered in that environment but I needed a bit of structure.

Enter Pearson College, a west Canadian institution funded by a diverse group of international entrepreneurs, the most famous being Occidental Oil founder Armand Hammer.

Pearson College was set up to foster international understanding by putting children from all over the world in an open, free-thinking environment.

Hammer paid a visit that burnt itself on the young Horgans memory.

Well, he laughs, the first thing I remember is that he was an extremely small man who arrived with this very attractive private assistant. Four of us were chosen to speak to him and it was an epiphany. I had started out the conversation thinking about his assistant but ended up being fascinated by his life story. How he sold furs to the Red Army, traded diamonds with Nazis, met Stalin and Lenin. I remember saying to myself that this wasnt what I thought business was like.

Although by now, the mid-1970s, the business bug had bitten, Horgan chose law as his Cambridge degree. My mother wanted me to do medicine, so we compromised.

Despite a successful student career that included captaining the Cambridge Mooting team the legal debating society he found the law doddery.

Thats why I think lawyers tend to have a reputation for outrageous parties, he claims. Because their basic life is so boring.

When Horgan left Cambridge in 1982, he made a typical decision. Instead of applying for the middle-ranking jobs in boring institutions like the clearing banks, he went for the top-paying jobs with American investment banks and consulting firms.

Boston Consulting liked the look of his international education and made him a well-paid team member, flying hither and thither at the front of the plane, talking to stuffy old-school chief executives and being heard.

A few relatively happy years followed until the next step a Harvard MBA beckoned.

Another epiphany was registered here. Horgan realised that the entire senior business management thinking ethic was based on cutting through the crap and trying to make money.

He struggled with the course at first but soon cracked the system and enjoyed it thoroughly.

His experience of America made strong impressions. Not least of these was the realisation that American business people are often like fish out of water in foreign environments.

Absolutely. I remember one friend who was the essence of debonair chic in the US. I went to Moscow with him and was embarrassed.

At this point, he says, it became clear to him that it was difficult for Americans to work in ambiguous situations.

Now, as Petrel attempts to turn its relationships with Iraqi oil officials into money, Horgans comfort with this ambiguity will be tested to the full.

His presentation of Petrels competitive advantage or why you should buy his shares is analytical and tightly reasoned against a political backdrop that most people would find too hot to consider.

Oil combines economics, science and politics together with, sometimes, hypocrisy and even blood, he says. The shortcomings of recent international policy are apparent in the high oil price and worries over supply reliability apart from the human costs of sanctions, war and terrorism. The main oil exporters and location of oil reserves, Saudi Arabia, is under pressure.

It doesnt have to be this way. Though they disagree about many things, Iraqi officials are wholeheartedly committed to the lawful development of their oil resources. The task is too gigantic to achieve without huge foreign investment in capital, technology and people. Many excellent Iraqi officials have been purged or left the country. Uncertainty works against investment. No major western oil company is now active in Iraq. Contractors such as Halliburton and Bechtel work on military contracts and are effectively part of the coalition military. Recent excesses have exacerbated tensions and complicate the lives of coalition nationals.

So far Petrel has managed to stay close to the oil. Apart from a period during the war, Petrel has continued to be active on the ground in Iraq. Horgan is the companys only non-Iraqi employee and even he felt safe enough to travel to the country last month.

So what exactly does Petrel have apart from hope, value and a decent contacts book? After all, the history of Irish exploration companies has been one of zero production, apart from acquisitions.

Horgan has heard this question many times and has a stock response.

Shares in companies such as Petrel, he says, create value with dreams. Often companies destroy shareholder value with marginal products. Its still possible to make 1,000 times your money and everyone who has followed me since 1989 (when he first hooked up with Teeling) has made serious money. Everyone who has had the sense to take profits when the shares rose has done well. I know people who have made a million from Petrel.

The company signed an exploration and development contract with the Iraqi ministry of oil in March 2002 covering specific projects. Horgan believes the proper authorities stand over their commitments.

He is more than willing to explain to anybody who will listen that Iraqi oil will make Irish people rich.

I am practically certain that Ireland regarded as a friendly country will get some stuff. Unless were all killed, well be part of it.

I am practically certain that Ireland regarded as a friendly country will get some stuff. Unless were all killed, well be part of it.

particulary like the above statement, have a good feeling that news is just around the corner, and topped up for what will hopefully be the last time at affordable prices for bulk buying

good luck to all pet holders it's gonna be an interesting ride

Thanks Tokyo. Ive topped up my holding today for the last time.Its now finger nail biting time!

Good luck all.

Wilbs

morning all,
i saw a snippet in a paper a few days ago that there was a possibility of a fourth tender up for grabs. i can`t remember where i saw it,all it said was there could be news soon of a fourth tender to develop iraq`s oilfields.does anyone konw anything about this ?.
also does anyone know about petrel`s involvement in sudan,there was a mention of it in their annual report?.
keep everthing crossed,
dexter

Evening all.(No im not a copper!) Anyone interested in petrel then check out the website link. I think you will find it very interesting. It involves a Mr Teeling and a Mr Horgan.

Please let me know wat you think.

wilbs.

http://www.panandeanresources.com/_theCompany/management.asp

Done a bit more research on petrel & pan andean. They both share the same 3 directors, same address & same phone number. Pan andean is debt free where petrel made a loss. Directors own 8% of pan andean. Should we own shares in both of these? Anybody know something?

Wilbs

BBC reporting Petrel have been short listed for it's three tenders. Deals should be known by the end of August.

http://news.bbc.co.uk/1/hi/business/3879839.stm

Share price has re-acted well to the news. 12% Up on today's low and still 40 mins to go.

cunningham

lovely bit of news thanks, hopefully you will be posting that they have won at least one of the tenders before the end of august


Tokyo

just read the article very interesting, things are looking up for Petrel

here is the article

Iraq oil deals 'by end of August'
The oil is there, but so are ongoing attacks on pipelines
Iraq's interim government is expected to award the first three post-war oil production contracts by the end of August, industry sources say.

Irish firm Petrel has confirmed it has put in bids for all three contracts on offer so far, making the final lists.

However, Shell told the BBC it had declined to enter the tendering process for at least the first of the three.

The big firms are said to be put off by the small size of the current deals, and the ongoing security situation.

Jim Finn, company secretary at Petrel, told BBC News Online it had submitted its three tenders between March and mid-May.


The scope and contract format are not compatible with our aspirations for long-term risk-reward contracts
Shell
"We have tendered and we are fairly confident," he said.

Although Mr Finn said the security situation was obviously not ideal, he said Petrel continued to have both a Baghdad office and people on the ground in Iraq.

Attacks

The first three Iraqi oil projects up for grabs are for developing the Khurmala Dome field in the north of the country, the Suba-Luhais field in the south, and the smaller Hamrin field, again in the north.

Shell said it was initially interested in taking on Khurmala Dome, but turned it down because it was not happy with the terms of the offer.

"We obtained a copy of the tender but the scope and contract format are not compatible with our aspirations for long-term risk-reward contracts," said a Shell spokesman.

A spokesman for BP said it has not made a bid for any of the first three contracts.

The Khurmala project is thought to call for investment of $100m (54m), Suba-Luhais $150m and Hamrin $80m.

Many other oilfield development projects are expected to be put out to tender in due course.

Iraq has the world's second biggest oil reserves after neighbouring Saudi Arabia but development has been held back by years of sanctions.

The interim Iraqi government wants to increase current production levels of about 2.5 million barrels a day to more than the pre-war level of 3 million barrels.

However, ongoing attacks on pipelines continues to hamper progress.

considering only 4 companies bid, how big can the short list be?

Technicals look good to. Today's close at 46.50 has broken the previous resistance level.

According to the article below there are only 3 companies and one is Petrel.


Shell turns down chance for first Iraq oil deal
By Khaled Yacoub Oweis

BAGHDAD, July 8 (Reuters) - European oil giant Royal Dutch/Shell has turned down the chance to win the first foreign upstream oil production contract in post-war Iraq, saying the terms on offer from Baghdad's new interim government were not good enough.

Despite security concerns, Shell told Reuters on Thursday it considered bidding for production work on the billion-barrel Khurmala Dome field in northern Iraq.

"We obtained a copy of the tender but the scope and contract format are not compatible with our aspirations for long-term risk-reward contracts," a Shell spokesman said. Typically oil majors like to secure a 15-20 percent return on 25-30 year contracts. Shell declined to elaborate on the terms of offer.

Since the war ended last May work by foreign contractors in Iraq's vast oilfields, the world's second largest, has been limited mostly to short-term infrastructure repair contracts led by companies like U.S. Halliburton .

Security worries have severely limited the number of foreign bids for rehabilitation projects now on offer for three Iraqi oilfields. Shell's leading competitors BP (LSE: BP.L - news - msgs) and the U.S. oil majors show no sign yet of contemplating entry into Iraq.

Baghdad is hoping to award contracts by the end of August after extending the deadline for bids five times, industry insiders familiar with the tenders said on Thursday.

They said the tender for Khurmala Dome that took Shell's interest is worth $100 million worth of investment, small by Shell standards.

Shell was the only big name oil company that took interest in the tenders, they said. Small UAE, Irish and Turkish companies also bid for the projects -- part of a plan to help raise output by 20 percent by the end of this year.


INTEREST LIMITED

"Interest was limited. Oil officials are confident that the projects will be finally awarded," said one Arab oil executive involved in the tenders.

The other fields up for rehabilitation are the 2.2 billion barrel southern Suba-Luhais at $150 million and the smaller northern Hamrin field at a cost of $80 million.

Ireland's Petrel is bidding for all three, Managing Director David Morgan told Reuters.

Dome, a UAE company, and EverAsia from Turkey also have bid, Iraqi sources said.

Iraq wants to restore production capacity to pre-war volumes of about three million bpd from some 2.5 million bpd now.

Funding shortages and security problems have delayed 150 oil ministry projects. These are separate from $1.8 billion of U.S.-funded projects that have also run into delay.

But after a reshuffle at the oil ministry, head of projects Ahmad al-Shamma is planning to move plans forward.

The ministry invited international companies this week to bid for a pipeline project in the centre of the country and another tender to construct a new pipeline linking the Kirkuk fields to the Beiji refinery is expected to be issued this month.

sonoran energy submitted two tenders in may,they must have been the fourth co. to tender . see www.sonoranenergy.com then click on news releases
good luck to all,
dexter

weekend tip from uk analyst ; BUY petrel resources @ 46.5 , so says stewart dalby editor of oilbarrel.com
dexter

morning all,
see article on oilbarrel.com, seems to heading inthe right direction at last, by the way what does IMHO mean?
thanks
dexterhttp://www.oilbarrel.com

In My Honest Opinion.