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

Morning all,
Where is everyone?. cheers for that wilbs,what is it like buying off e-bay?, i`ve never really looked on the site, what with all the horror stories etc.
I sold PET today and bought NTX for a quick gain, not going to plan at the minute though!, i want to buy back into PET and increase my holding soon, as i do feel they have plenty of potential in the longer term.
dexter

Afternoon dexter et all,

I have bought loads of stuff of ebay, never had any problems. I bought into NAD this morning, its gone up 50% already. The shares have now been susspended by request of the company pending an announcement.

wilbs

Cripes I missed the RNS & look at the price now.

Dexter,
did you sell all you holding of PET?

wilbs,
yes i did, just having my lunch, checked it,RNS out jumped back in, at a loss with NTX and buying back.
dexter

dexter

Hopefully we will start getting a few more RNS's. Prob be a bit of profit taking. I may sell then buy back in. Have you heard from toyko lately?

wilbs

wilbs,
No i have`nt, the last i heard he was getting some questions together to ask a friend of his who knows of lot about PET.

Dexter

Ive not seen any posts from him for a while.
Are you still about toyko?????

wilbs

A couple of really good points about the RNS today. First: confirmation of the integration with the Western Iraq area, presumably block 6 with the implication that drilling rights will be restored to PET. Second: the potential prudction sharing agreement. This is in contrast with Iraq who insist they own all the oil so that contract winners might do good business but they will not get the multiples from oil flow. The announcement moves PET towards being a more stable player and a better long-term bet. However, OBTS, so watching, if not from afar, from the sidelines at the moment. Better luck, though, for those staying on-board.

Eric

eric, points for the up today. Hope this does indicate there is leverage towards block 6 on the other side of the boarder. Stable player is a good description for the future. Watch out for DES

watcher

Just seen this:


Petrel says drill underway in Jordan
Monday, January 10 14:08:26

(BizWorld)

Irish oil and gas exploration firm, Petrel Resources, today said a work programme is underway in the area covered by the company's exploration agreement with the Jordanian government.

The company said the Memorandum of Understanding with the Jordanian authorities, which covers the East Safawi block in the Arabian desert near the Iraqi frontier, is convertible into an exploration and development licence after six months.
If drillable targets are identified, the company expects to advance to a Production Sharing Agreement.


Petrel said its work programme will be integrated with its work in the Iraqi Western Desert. The company said it believes the area is under-explored and hopes advances in computer processing and field techniques will offer new insights into the petroleum potential of the region.

......................................

I know it's a re-hash of the RNS, but nice to see the news starting to travel.

AFX


TEHRAN (AFX) - The Iranian government said today that US oil group Halliburton Co has won a major contract to drill for gas, despite US sanctions against foreign investment in the country's energy industry.

'Halliburton and Oriental Kish (an Iranian company) are the final winners of the tender for drilling South Pars phases 9 and 10,' the head of Pars Oil Gas Company, Akbar Torkan, was quoted as saying by state television.

An unnamed company official quoted by the reformist Shargh newspaper said the deal for the gas fields in the Gulf off the south coast of Iran was worth about 310 mln usd.

He said Halliburton had not directly signed the contract but that it had offered its services via Oriential Kish.

Under a law introduced in 1996, the US threatens sanctions on both American and foreign companies investing more than 40 mln usd in Iran's petroleum industry.

Halliburton, once chaired by US vice president Dick Cheney, has come under investigation in the US for its dealings with Iran through a Cayman Islands subsidiary.

Iran, which is OPEC's second largest oil exporter, also has the world's second largest gas reserves.

aet-sgh/fpn/txw/cw

Whats to stop Halliburton getting contracts in Iraq if the Iranians don't mind dealing with them.

Hey Wilbs - Yes I'm still in PET, but just a bit busy at the moment, today's RNS was certainly a welcome one, but you'll all have to agree it will be one of the tenders that send the SP back upto 150-2 pound-ish, and then Block 6 that will make most of our PET dreams come true, so PEt has become a long term hold for me. I have a bit of time tomorrow, so I'll post some results of my latest research tomorrow

tokyo

Toyko,
good to see your still around. Have you got back into NBR yet? I sold out to get into jrvs, turned out to be a good move.

wilbs

Hi all, just got this in my inbox.



Petrel Resources Signs Jordanian Oil & Gas Memorandum

By Stephen Clayson
10 Jan 2005 at 12:15 PM EST


VANCOUVER (ResourceInvestor.com) -- Oil & gas explorer Petrel Resources [AIM/ISE: PET] has signed a memorandum of understanding with the Jordanian government first announced last month. The memorandum relates to the 8,750sqkm East Safawi block, situated in the Jordanian pan handle region close to the Arabian Desert borders with Iraq, Syria and Saudi Arabia.

The memorandum grants Petrel exclusive access to the block for the next six months, after which it can be converted to an exploration and development licence and possibly a production sharing agreement established, assuming that the results are encouraging and drill targets can be identified.




The companys focus has hitherto been on Iraq, where it has applied to the post war authorities for contracts to redevelop three existing oil fields and to re-secure exploration rights that had been in place previous to the regime change for Block 6 the Western Desert.

According to Petrel Managing Director David Horgan, the companys interests in Jordan derive from its exploration work in the Iraqi Western Desert before the fall of Saddam Husseins regime. The results of this work have fundamentally changed the companys perception of Jordan and other neighbouring countries regarding oil & gas, although the company has been considering Jordan as an operable region on and off several years.

Petrel feels that Jordan as a nation is under explored, and reinterpretation of existing seismic data will continue in tandem with analysis of existing data from the Iraqi Western Desert, which is currently inaccessible due to the negative security situation. Ground work will resume there when possible. In contrast, Jordan is a place in which the company feels safe doing business, and a place where it can be done on good fiscal terms.

Oil & gas plays in the East Safawi block will be based on what the company has learned from Iraq, and the near term focus will be on constructing a region wide model of the Western Desert. This will achieved through analysis of satellite imagery and reprocessing followed by reinterpreting of seismic data.

Petrel was hit hard last month by a Reuters report that two of the three Iraqi oil development contracts for which it had been bidding, namely for the Khurmala and Hamrin fields had been awarded to a Turkish company and Canadian company respectively. However the Managing Director states that negotiations are still ongoing, but feels that it would be imprudent to speak of them at any length at the present time, though he offers his assurances that as soon as Petrel knows the outcome of the bidding they will inform the market. The stock has fallen precipitously since October last year on the back of concerns and uncertainty over Iraq.

The details of the three oil field development tenders are as follows:

At the Kirkuk/Khurmala field in Kurdistan the company proposes a 120,000bpd operation, with potential for greater output in time. The reserves are proven and the geology well understood, but no surface infrastructure is yet in place.

It is a similar story at the Hamrin field northwest of Baghdad, where reserves are proven and existing shallow wells have been capped and left, but the field is also devoid of any surface facilities.

The Subba and Luhais joint field northwest of Basra once produced in excess of 100,000bpd, but the surface facilities in place sustained substantial damage during the Iraqi-Iranian war of the 1980s and at the point in time just before the last war production had fallen to a trickle. Petrel proposes to restore production to around 120,000bpd, and has completed a $350,000 feasibility study on the fields.

All three contracts are for cash, but Petrel is hopeful that they could be converted into more lucrative risk sharing agreements in the future.



wilbs

Afternoon all,
where is everyone today?.Try this site.
www.nra.gov.jo/opportunities.htm

I sent PET an e-mail and got this reply;

The samples were mostly from the Risha area - but some were more widespread.
Our interest in East Safawi emerged from the model that we developed in the Iraqi side of the western desert.
DH

--- On Tue 01/11, Jacqui Gallagher < jacqui@CooleyWhiskey.com > wrote:


From: Jacqui Gallagher [mailto: jacqui@CooleyWhiskey.com]
To: daithiohargain@excite.com
Date: Tue, 11 Jan 2005 12:58:25 -0000
Subject: FW: Contact Petrel Resources : Jordan


-----Original Message-----
From: petrel@hub04.mail.esat.net [mailto:petrel@hub04.mail.esat.net] On
Behalf Of ******.*****r@btopenworld.com
Sent: 11 January 2005 12:49
To: petrel@iol.ie; ******.*****@btopenworld.com
Subject: Contact Petrel Resources : Jordan

Name - roger *******
Message :
Dear David,
The East Safawi block you have just signed the MOU with, is
this the same area that you were taking samples from last year when
Block
6 in Iraq became too much of a security problem. Only when you said that
you were taking samples from the Jordanian side of the border i assumed
that it was right on the border, but on a map the Risha gas field
directly borders Iraq, with the East Safawi block some 60-80km inside
Jordan.
Please could you clarify this point.
Many thanks, and keep up the good work,
Roger *******

This is Lemming Investors recent take on yesterdays announcement


Elric Lloyd-Langton
January 11 2005

Petrel Resources announce yesterday that they had signed a memorandum of understanding with the Jordanian government first announced last month. The memorandum relates to the 8,750sqkm East Safawi block, situated in the Jordanian pan handle region close to the Arabian Desert borders with Iraq, Syria and Saudi Arabia. The East Safawi Block opportunity emerged from the work Petrel had been doing with the Jordanian authorities in the Arabian Desert. Generally the best plays are on the Iraqi and Saudi side of the border, but there are also some interesting plays across the political frontier on the Jordanian and Syrian side. So far the most comprehensive access and cooperation came from the Jordanian NRA.

Petrel have been given a unique opportunity to study the pan-handle bordering Iraq. The Jordanian NRA offered Petrel an exclusive MoU to study the choice east Safawi block for 6 months, after which studying data and options Petrel then have the option enter into a exploration and production agreement, assuming they find encouraging data and identify drill targets. It is arbitrary to value exploration work until we know more after reprocessing the seismic.

Petrel feels that Jordan as a nation is under explored, and reinterpretation of existing seismic data will continue in tandem with analysis of existing data from the Iraqi Western Desert, which is currently inaccessible due to the negative security situation. Ground work will resume there when possible. In contrast, Jordan is a place in which the company feels safe doing business, and a place where it can be done on good fiscal terms.

Oil & gas plays in the East Safawi block will be based on what the company has learned from Iraq, and the near term focus will be on constructing a region wide model of the Western Desert. This will achieved through analysis of satellite imagery and reprocessing followed by reinterpreting of seismic data.


There has been some confusion surrounding the Jordanian venture, hopefully these will be dealt with in the following bullet points.

1. Will Petrel be allowed to convert any discovery in to productions?
Petrel has the right, but not the obligation to convert to a PSA on generous terms.

2. How will the Jordanian work be funded?
Existing and new institutional shareholders have underwritten the expenditure.

3. How is the partnership with the Iraqi/Jordan authorities working?

The Jordanian authorities have already been very cooperative with Petrel their work in Iraqi. They are a pleasure to work with Our interest in East Safawi (Jordan) comes directly out of the work conducted and models developed in the Iraqi western desert. Hopefully 2005 is the year!

Iraq

The current situation is that no contracts have been awarded, at least no official notifications have been issued. The biggest contract (200,000 bopd) is the Subba & Luhais joint field development. This is also the most straightforward, being 45km NE of Basra port. The area is fairly quiet (Shia and sparsely populated). There is considerable potential at depth.

Petrel said they did not know officially but understand that the Turkish group Everasia bid on Khurmala only. OGI is a consortium of Arabs and Cargary groups which had approached them with the view of joining them saying they were only interested in Hamrin.

If low price is critical, I would guess that Everasia and OGI would under-bid western groups because of different approaches and solutions. The end objective is risk-sharing arrangements
The companies bidding on Subba & Luhais are western-style groups which will bid on the basis of actual costs and risks.

The shares are trading in quite a volatile manner, more than usual after last months foolish report by Reuters which stated that Petrel had lost out in it Khurmala and Hamrin fields tenders, saying they had been awarded to a Turkish company and Canadian company respectively, the Canadian company had to suspend its shares from trading due to the incorrect announcement. Although the shares recovered a 8% early morning loss on Monday, they recover to positive territory finishing 14% up, unfortunately nervous traders have pulled the shares down again 7.5% to 47p, just 11p above our initial coverage last March, a far cry from their high of 136p.


http://www.lemminginvestor.com/PetrelJordanIraq110105.html?1105463499812

I have been researching the political unrest and imo it is clear that no contract announcement will be made public until after the elections due to the interim government being over ruled on completion of the elections, if the new government have a differing agenda as to who gets what. There is a sound viewpoint that there is growing pressure within the country to produce oil and overcome power shortages within larger cities. A good friend works in country. I still hold.

watcher