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

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.

thanks cunningham,

nice steady stream of buys, looking good.everbody must be topping up

250,000 buy at the end,should be good start for tomorrow
dexter

what is the feeling from this board, if petrel get only one of the contracts, what sort of stock price are we looking at? 3 pounds?
interested to see what you all think

looks ambitious judging by today

you have to remember that nothing dramatic is going to happen until,hopefully, they get a contract.all the time there are snippets of hopeful news the price is going to go up,then it will go down when things go quite for a while.even at todays price of 49-50p it`s very good when you consider that the price was only 20-30p in feb/march 2004.most of us are already sitting on a good profit, it`s just that this one could go into orbit,and that`s what make us greedy , for want of abetter word.
good luck
dexter

i want to be greedy too guess i'll just have to wait a while am in on pci too!

You could always eat a bag of doughnuts patsym till we hear some news!

petrel needs some more cash, wonder why?

Petrel Resources PLC
14 July 2004

Petrel Resources plc announces that it has applied to have an additional 110,000
ordinary shares of 0.0125 each listed on the Alternative Investment Market
pursuant to the exercise of options. Admission is expected to take place on
Tuesday 20 July 2004.

Lots of good news on the horizon, but you are kidding yourself if you think 1375 from a share issue is going to change their way of life

Agree with you on that Piston. What diff will that amount make at the end of the day? Patience seems to be the keyword with this one .. that and prayer.!!!

is there any reason for the drop today?,also there is a 50k sell at 5.25pm,am i right to be a little worried?,
i need a drink,
cheers , dexter

I wish I knew dexter.Im with you on the worried front. Its quite a drop since last weeks high. Ill join you for a drink. Mines a double whiskey. Cheers!! Heres to Petrel Resources I hope.

looks like PET was shorted last week with alot of profit taking, but wouldn't be surprised to see most of those people coming back in before August 1st in search of the big prize. I know 4 pounds 35 pence was mentioned at the biginning of this thread, but any intelligent guesses out there, if they won only one of the tenders, which is probably all they will get, what is a realistic price? 3 pounds?? 2 pounds??? what??

"Article in the Sunday Turbine yesterday suggesting that Petrel is set to win the smaller of the three contracts worth 150m."

the above was posted on the iii site, but I can't find anything to back it up on the web, did anyone read the article on Sunday?