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

Theres an update on PET at Lemminginvestor.com this evening with an important update from the company ahead of their AGM.

The update relates to;

Funding
Security
Bid
worst case scenario

http://www.lemminginvestor.com/PetrelResourcesDavidHorgan.html

Good luck

morning elico,
this makes very interesting reading,so near yet so far.i`ve mentioned several times about Sudan ,but it seems nobody knows anything,do you elrico?.
dexter

Interesting read, here it is -

July 27

It is about this time Petrel Resources investors will be experiencing itchy feet, so close to news of Petrels three tenders for the right to develop proven oil reserves in a country 2nd only to Saudi Arabia - you can smell it, or some would have you believe, whether it is good news or bad news is anyones guess. The air of anticipation of good news is apparent; BBs commentators predicting anything from 50p by close of on Wednesday as investor speculate on good news being released at the companys AGM, others are even more bullish; predictions of 500p by September, no such prophesies from me, or the company.

Iraqi authorities has led us to expect results of tenders by August, probably the later end, previously, this was expected to be June. Lets be realistic, this timescale was always in hope rather than design, which led to Petrels shares slip from the mid 40s to 32p in mid June as news that the tender dates had slipped-nothing to do with Petrel, they were ready. The shares are in a healthy position trading between39p-46p today, typically hovering around the support level of 40p, but off there 52p high July 9; the shares were just 10p this time last year.

Petrel has put in tenders for three oil fields in Iraq, the company is hopeful that it will be given the opportunity to develop at least one of these fields in either; Kirkuk in the north, Hamrin in central Iraq and the Subba and Luhais fields to the south of the country. Petrel also has rights to prospect in the deserts to the west of Baghdad.

As expected, the blue chip oil giants have all but shied away from the tendering process for fear of terrorist reprisals. The risk reward ratio for such corporate giants is not worth the wrath of militant terrorist groups, speak nothing of shareholder concerns from the larger institutions, hardly surprising to learn that the big boys have little stomach for tenders, this as expected, has opened the door for Petrel just a little wider.

Petrel is not a company which leaks information; they are approachable, reassuringly frank and open with investors and journalists alike.

I approached David Horgan, the MD of Petrel this afternoon; I received a reply to my e-mail just a couple hours later; even though Mr Horgan must be busy preparing for the companys AGM on Thursday in Dublin-which I am sure investors eagerly await. I asked just four questions which I am sure concern investors above all others. Mr Horgan answered in typical no nonsense fashion, with clarity, frankness and in as much detail as LSE rules would allow.

Elric: How will the company would fund a successful tender.

Mr Horgan: Between August and November 2003 we met over a dozen City and Scottish institutions and three international banks. Having teased out their level of interest and concerns, we incorporated their feedback, ideas and guidance into our tenders. So, as long as we stay reasonably close to our riding instructions, we have equity and debt commitments for a major Iraqi oil field development. Things evolve, but generally along the lines we then sketched out.

There have also been approaches from oil independents and 'spontaneous meetings' with super-majors, as well as the usual private equity sources. Provided prudential requirements about economics and title are observed, funding should not be a serious problem. We are more concerned to avoid excessive or premature dilution.

Elric: Would you welcome a bid from oil majors like BP?

Mr Horgan: I want to build an oil independent as Armand Hammer did with Oxy in Libya. But shareholders want to maximise risk-adjusted returns. So far these objectives are in tandem. Should they diverge we will strive to maximise present value for shareholders. But our whole focus is in landing an oil field development contract, exploring the western desert and being part of the Iraqi oil industry.

Elric: Should the worst case scenario become reality, what position would this leave Petrel in?

Mr Horgan: Petrel has no debt and low overheads - with practically no fixed overheads. There are few shares in issue. So it cannot go bust. The worst case would be fatalities. If we were delayed in Iraq we would push on with alternatives in countries such as Sudan, where we have quietly pursued opportunities for some years.

Elric: What security issue do you expect if you are successful in obtaining the rights to at least one block?

Mr Horgan: The only real security in Iraq is the goodwill of local communities. There are many former soldiers (now unemployed) available, many of whom come highly recommended by the Ministry of Oil officials. They are scrupulously honest, brave and reliable. I have entrusted my safety to local friends and partners since the war, so am content to follow their guidance. Where exceptional problems arise (e.g. transporting large pieces of equipment across the western desert at low speeds) where we cross different tribal areas / political spheres of influence, we may have to employ international security operatives. Some such firms are excellent, though expensive. So far, best results have been achieved relying on the Iraqis themselves. Some of our partners, however, have not been through our close experience of the past 18 months and will need hand-holding.

We are experienced in working in ambiguous situations: arguably we're comparable to the barbarian auxiliaries who served the Roman Empire: we can operate reasonably comfortably under both civilised 'Queensberry Rules' and also the evolving rules of the more chaotic barbarian world - always ready to flip back and forth between the two.

End quote:

don't really see anything here to warrant the drop in price unless people were expecting the contracts to be announced today. I'm still happy to hold on this news

Petrel Resources PLC
28 July 2004

162 Clontarf Road
Dublin 3
Ireland



Tel: 353 1 833 2833

Fax: 353 1 833 3505

Email: petrel@iol.ie



www.petrelresources.com



28th July 2004



Petrel in technical discussions on Iraqi oil developments



At the AGM of Petrel Resources plc which will be held at 1400 hrs today the
Managing Director, David Horgan, will make the following statement:



'Petrel is pushing forward its submissions to develop the Khurmala Dome, Hamrin
and Subba & Luhais oil field developments in Iraq.



Recent political developments have presented some challenges and delayed, but
not derailed this work. The new minister has reasserted the need for
professional and pragmatic progress. We have received excellent cooperation and
a warm welcome from Iraqi officials.



Petrel is now in detailed technical discussions with the Iraqi Ministry of Oil
on the first two of three tenders submitted recently. The work deepens and
broadens the detail provided in our submissions in response to the tender
information made available to pre-qualified companies, including Petrel.



The key technical issues are mechanical, civil, telecommunications, control &
instrumentation and especially electrical. The Ministry's oil field development
company is conducting professional due diligence on suppliers of piping, values,
fittings and other equipment. Petrel submitted its tenders in close cooperation
with some of the world's leading contractors and suppliers of oil field
equipment.



This necessary work clarifies the engineering choices required and lays the
foundations for commercial negotiations.



This work confirms the renewed commitment of Ministry officials to ensure the
optimal equipment provided by suppliers who are able and willing to work under
prevailing circumstances.



Petrel employs, where possible, local staff. They are honest, brave and
reliable. Where exceptional problems arise, as where we cross different tribal
areas / political spheres of influence, we may have to employ international
security operatives.



Given the economics and geology of Iraqi oil, Petrel believes that funding
should not be a problem. We are more concerned to avoid excessive or premature
dilution.



Petrel aims to become an oil independent developing Iraqi oil fields and
exploring the western desert.'



Contacts:

David Horgan Tel: + 353 87 292 3500
Jim Finn Tel: + 353 18332833



Barrie Newton, Rowan Dartington Tel: + 44 (0) 11 79 33 00 11
Mob: + 44 (0) 7720 276 271



Redleaf Communications
Emma Kane/James White Tel: +44 (0) 20 7955 1410
Mob: +44 (0) 7876 338339





PETREL is an Oil Explorer in Iraq traded on the AIM market in London. Ticker
symbol (PET)
Further information on Petrel Resources plc is available at its website:


www.petrelresources.com



Directors: John Teeling, Chairman, David Horgan, Managing, Guy Delbes (FR),
Stefano Borghi (ITL), Jim Finn, Company Secretary

Registered Office: 162 Clontarf Road, Dublin 3, Ireland


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

It's negative to what might realistically have been expected (and hoped) - let's see what sentiment it evokes but I'd expect a negative swing on the back of this.

Pretty bad today on the back of the announcement, but not disasterous and a lot of buys coming through in afternoon trading..would not be surprised if this is a blip and corrects again in trading tomorrow. Definite hold.

The share price held well until news came through about a kidnap of a ministers kids. It seems that when there is bad news from Iraq the share drops. I think that petrel reported good news today and the share price will rise in the next few days. Bad news always knocks good news. Any comment?

Regards,

Wilbs

morning all,
article in the guardian today,www.guardian.co.uk/business/story.
hope thats right.
dexter

nice article but now the date seems to set at the end of august

For all PET holders info.

Terry Macalister
Thursday July 29, 2004
The Guardian

Petrel Resources, a small London-listed company, will tomorrow submit final proposals for a $750m (411m) scheme to start production from three new oil fields in Iraq.
It expects to hear by the end of August whether it will become the first western oil firm to work in Iraq since the end of Saddam Hussein's regime.

It has already effectively beaten off oil major Shell, which had a look at the tender documents but decided the contracts were not profitable enough.

John Keeling, the chairman of Petrel, said last night that the other western oil companies had been chased away by security scares and political risk.

"The big companies have backed off because they are not sure how things are going to pan out. They cannot send their own staff because they can't get insurance for them. They would be wide open to attack because there is a lot of bitterness towards the US and Britain," said Mr Keeling.

Petrel stands a chance of success, he believes, because it is listed on the Alternative Investment Market in London but is actually based in Dublin. It has also been actively involved in Iraq for many years and employs mainly local staff.

Petrel is already in detailed technical discussions with the Iraqi oil ministry on the first of three tenders submitted for the Khurmala Dome, Hamrin, and Subba and Luhais fields.

The combined output from these fields could be as high as 420,000 barrels a day, and when operating would have a "lifting" cost of just $1 a barrel

Two out of the three fields have never been developed before, while the third in the south of the country was bombed and badly damaged during the war.

Petrel says it might be valued at only 25m on the stock market but could easily raise cash for the oilfield development work.

Petrel's "Irishness" is a plus, according to Mr Keeling, because it is regarded as being politically neutral. He explained: "When [managing director] David Horgan last went to Iraq, he wore a bright green Irish rugby jersey. The Iraqis were all asking 'who is that lunatic?'"

dexter01,

IMHO, Sudan is seen as an insurance policy, if you like, in case Iraq falls ill in favour. I am not saying that PET will discard Sudan if Iraq is a goer, but the main prize is Iraq.

You need to remember that Sudan is no safe haven either, much political unrest, a country where the government hire Arab militia to murder their own people, according to western media.

Going into August, perhaps at the last stage of the race now. Will they get the contract or not? August is going to be an interesting month for all PET holders, I feel that one way or another we will finally Know, IMHO the news is going to be positive!!

Chartist2004 are you still in this?

This has been posted on iii investor board, & HOPEFULLY it's true!!!!(Well the part about Petrel anyway)

From the Boston Globe

About that 'good news' out of Iraq
August 5, 2004

JEFF JACOBY made my day by letting me know that the news in Iraq isn't all bad (op ed, Aug. 1).

Notwithstanding the almost daily killing and maiming of civilians and our troops, civic order is replacing chaos and drivers now stop when a traffic cop raises his hand.

And the Iraqi government will no longer spend the nation's riches on developing destructive and illegal weapons of mass destruction (which I suspect Bush and Jacoby are still hopeful of finding).

And, oh joy, weddings have increased by 75 percent since the fall of Saddam. But best of all, three oil contracts are expected to be awarded to the Irish firm Petrel by the end of August.

All this as we continue to accomplish our mission there.

I am sure that all this good news will be of great comfort to the family of the last American to die in Iraq.

MURRAY SWERDLOVE
Framingham

Copyright 2004 Globe Newspaper Company.


If the above is indeed true, we shall be jumping for joy at the end of August, the only question then will be - "How high can the Petrel stock go?"

Good luck to all holders

Tokyo

Here is the link to the story, lets hope (a) it's true & (b) it is picked up by an English newspaper

http://www.boston.com/news/globe/editorial_opinion/letters/articles/2004/08//05/about_that_good_news_out_of_iraq/

Been Picked up by the Telegraph today

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2004/08/08/cnptrel08.xml&menuId=242&sSheet=/money/2004/08/08/ixcity.html

MM

Here's to a glorious summer/winter champagne all around me thinks

this looks like the first contract of the three that all of us PET's have been awaiting....tomorrow morning will be very interesting even if there is no definate contract announcement it should really fly

GO PET GO

This board should really start to heat up over the next month!!!

Like you all I have my fingers and everything else crossed for PET

Good luck to all holders

Tokyo

morning all,
this article is just a reworking of previous news,the writer is doing what journalists do best,hype.having said that i think PET will win at least one contract,this article was picked up from boston globe,which in turn told me in ane-mail that their source was newsarabia,when i checked the article it was about a month out of date.
this telegraph article should push the price up this week.
good luck,
dexter

It's not even 8am and it's already up 44%.
Don't feel the article was a rework as the CEO was quoted with new info in yesterdays article. Again you only have his word, but my gut tells me that this is real and PET are the favourites for the tender, Why else would Iraq be asking all these technical questions.

All of course IMHO

Good luck all

Tokyo