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

BAKERSFIELD, CALIFORNIA -- Ivanhoe Energy (Middle East) Inc., a subsidiary of Ivanhoe Energy Inc. (NASDAQ: IVAN and TSX: IE), and the Ministry of Oil of the Government of Iraq have signed a memorandum of understanding (MOU) for Ivanhoe to study and evaluate the shallow Qaiyarah Oil Field in northern Iraq. The field's reservoirs contain a large proven accumulation of 17.1o API heavy oil at a depth of about 1,000 feet.

Ivanhoe will evaluate the potential response of the Qaiyarah Field to the latest in Enhanced Oil Recovery (EOR) techniques, along with the potential value that could be added using Ensyn Petroleum International Ltd.'s heavy-to-light (HTL) oil RTP(tm) conversion technology to produce higher quality, more valuable crude oil. Ivanhoe has the exclusive rights to use Ensyn's technology in Iraq. The work will include an assessment of the oil-in-place in the reservoirs, and the optimum EOR/HTL methods to establish economically recoverable reserves at Qaiyarah.

Ivanhoe President and CEO Leon Daniel said the company expects to complete the study within a few months of receiving the required data from the Iraq Ministry of Oil. "The Qaiyarah Field holds significant potential and may be an excellent candidate for the application of the Ensyn HTL oil technology," he said. "We are very pleased that the Government of Iraq has given Ivanhoe this key role in evaluating the reservoir at Qaiyarah."
If the evaluation studies indicate development of the field is economically viable, Ivanhoe will present a development plan and offer a commercial proposal to implement an enhanced oil recovery program for Qaiyarah. The Ministry of Oil is under no obligation to execute the project or to enter into formal commercial negotiations at the completion of Ivanhoe's study.

Ivanhoe Energy have already a bit of the pie in iraq, so this would lead me to believe that the IMO would lean towards Pet for the S&L contract.

One news in their favour and watch the price go. Remember Iraq is second only behind Saudi Arabia. Second in the world! Investors have seen only the bad news. Wait for the good news. The country is moving forward. Stability then election and when they start real business which they are good at PET will show its quality. PET has been there in bad times and it will be naive to assume they won't be there in good times. They have a good working relationship in the area -- The Jordanian deal! Their selection with other companies for contracts in Iraq means they have successful in making their presence known to the Iraqi authorities.

Texas Oil Firm's AIM Float to Open an Iraq Door
by Steve Hawkes Sunday, January 30, 2005


City punters will be given a chance to share in the anticipated Iraq energy boom in the coming weeks when a Texas-based oil company floats on AIM.

Gulfsands Petroleum wants to build a gas-processing plant which it claims will enable Iraq to free up and export an extra $500 million (265 million) of oil currently used in power generation each year.

The company has almost 40 fields in the Gulf of Mexico but wants to raise cash to fund the plant after signing a memorandum of understanding with the Iraqi government earlier this month. It also needs to fund a drilling campaign in Syria.

A source said: "The company feels UK investors will have a better appreciation of the potential value of projects outside the US."

Seymour Pierce will market the company next month ahead of an estimated 70 million listing in March.

Engineering giant ABB has already run a feasibility study on Gulfsands' planned gas facility. The company wants to take in and process gas currently flared off at oilfields and pump 300 million cubic feet a day back into the main pipeline infrastructure.

Gulfsands' float comes amid growing evidence the supermajors are turning their attention towards Iraq. BP and Shell have signed deals to study Iraqi fields and experts believe the first long-term contracts could be awarded in a year.

Irish explorer Petrel Resources is the only current oil play with exposure to Iraq but it has yet to sign a deal.



http://www.rigzone.com/news/article.asp?a_id=19868

wilbs

No announcement re Hemrin or Suba-Luhais before the election; we are probably in no-man's land for Feb while the election results are finalised and the government is sworn in and gets to work. The key question is the level of continuity with the pre-election government. I get the feeling that some like PET because of their loyalty but others might be wary because matters are conducted under public scrutiny. I'm interested that you, Tokyo, are seeing PET as more of a long-term play. It would appear quite probable that they end up 2005 in a much stronger position resulting from positive progress in Iraq and/or Jordan. I have retained a residual stake because it is better to be an insider; easier to react quickly to significant news.

Eric

When the new goverment are sworn in etc,etc, does anyone know if the new goverment may change the ministers of the IMO? Its just a thought because if they do, it may be possible that they will review any tenders and ask the companies to re-submit them? Its just a thought but prob wont happen as they will want these projects up and running.

wilbs

Oh well joe time for a walk round.

Election out of the way now I believe the real business will start and PET will shine soon. Back to where it belongs. Iraqi government would want to progress through trade and OIL is their main business/revenue anyway and PET has a good chance.

One to watch this week as a short.

Hi
anyone interested and for what its worth the e-mails below from DH in answer to my request for clarification. Unfortunately the answer doesn't amount to a single Dinar!!
-------------------------

Dear Alan

We will announce as soon as the Iraq authorities finalise their
decisions.
DH

-----Original Message-----
From: Jacqui Gallagher
Sent: 02 February 2005 12:30
To: David Horgan
Subject: FW: Company progress



-----Original Message-----
From:
Sent: 02 February 2005 11:38
To: Petrel Resources (info@petrelresources.com)
Subject: RE: Company progress

WHY can't my questions be answered?
Am I not correct to say that any fundamental alteration in direction,
especially regards price sensitive news, different from that stated at
the most recent AGM should be notified to share holders without delay.

If the "direction" of the company is now different to that stated at the
AGM please advice, if not then reaffirm David Horgans statement.

Regards


>-- Original Message --
>Subject: RE: Company progress
>Date: Wed, 2 Feb 2005 11:16:46 -0000
>From:
>To:


>Unfortunately we are unable to make any comment at this time.

Regards
>
>-----Original Message-----
>From: petrel@hub04.mail.esat.net [mailto:petrel@hub04.mail.esat.net] On

>Behalf Of
>Sent: 02 February 2005 10:43
>To: petrel@iol.ie
>Subject: Company progress
>
As a long term holder--------when can I
>expect an annoucement with regard developemnet in Iraq??
>
>It would help with-update- clarification on the David Horgan statement
>29/09/04
>
"We have spent the last seven years in pursuit of our goal of becoming
>an independent oil producer in Iraq. The next few months may see us
>take important strides towards this goal"
>
>With the greatest respect perhaps it is now time to specify:
>
>What is meant by a "few months"?
>
>When those "important strides" might commence?
>
>What is "our goal" today 02/01/05, have they changed since September
04?

Now you know LOL

That announcement may not be too far away Alan

Iraq ready to award oil work
Development of two fields may cost $450 million

By DANIA SAADI
Bloomberg News

Iraq, the Middle East's fifth-largest oil producer, plans to award contracts worth about $450 million to help the country boost its oil output capacity.

"We have filed our recommendations to the government, and we are awaiting cabinet approval," Ahmad al-Shamaa, Iraq's undersecretary of oil, said Monday. The contracts may be awarded before a new government is created, he said.

Development of the Suba-Luhais fields in the south and Hamrin field in the north may add as much as 200,000 barrels a day to the country's oil output capacity of 2.8 million barrels a day, he said.

Iraq is struggling to boost its capacity to pump oil because of insurgent attacks on pipelines and years of little investment during United Nations trade sanctions.

International oil companies such as Canada's Ivanhoe Energy and Ireland's Petrel Resources are competing for a $250 million contract to develop the Suba-Luhais fields, which will add about 100,000 barrels of oil a day.

Ivanhoe is also competing for a $200 million contract to develop the Hamrin field, which may produce as much as 100,000 barrels of oil a day.

Also Monday, an Iraqi official said the country plans to spend about $2 billion this year to import fuels because of refining shortages and attacks on pipelines that feed refineries.

The ministry plans to start upgrading its refineries this year to help reduce fuel imports. Projects include adding a 70,000-barrel-a-day unit to the Daura refinery in Baghdad and building two new refineries in the south and center of the country, he said.

http://www.chron.com/cs/CDA/ssistory.mpl/business/energy/302 9111

Tokyo, it's been a while since anything posted here. Hope you are keeping the skills up. There is great pressure in the ports of Iraq at the mo on the import route for oil, (friendly info) so this might bring forward the tender announcement dates and then the holders will be rewarded.

watcher

Re: Telephone conversation with Petrel this morning. They have no idea of the time scale for decisions being made, they have had no feed back from the iraq goveremnt and at this time do not know who will be making the decision as a result of the elections. They like us shareholders were hoping it would be done and dusted before the event. I got the impression that they are just as frustrated as we are. They did reaffirm that their objectives and goals remain unchanged. Does anybody know where one can purchase shares in patience.

Hi loadsadosh
Thanks for the update.

Hi Scottie
Given the recent contractS that this company has secured on Iraq's border It seems by the amount of sells going through that punters have taken their eye of the bigger picture in favour of chasing the dream, a big mistake in mho. PET offers the potential of real growth over the medium to long term. Once results on existing position start to come through HOLD ON TO YOUR HAT

On the way up, perhaps the punters are beginning to work it out?

Gone flat here,,,,,for how long.

daves dazzlers .........until there is some news to report!.......and...how I wish we could report something!!!
But just for interest purposes.........

I don't often read other bbs, usually too heavy for me, however I did read Advfn today and an E-mail, claiming, to be from Petrel(not sure DH OR JT probably DH) I'll not copy and post, its not that important, but in summary; it reaffirms commitment to Iraq and their undertaking with the ministry to keep the silence....
My only interest would be what Ministry?? who is heading that 'ministry' and to whom is the minister of that 'ministry reporting?? Is it the MOO or the Government?? The last we heard was the tenders had been sent to the Gov', before the elections, for them to award the contracts.
It's now a legislature in limbo, so who would be making those decisions....
Can there be any decision at gov' level until they form a government? and that is surely months away.

There are more questions than answers... and... Thats for sure.

the only certainty is....the oil (etc) will need lifting eventually and Petrel are still in Iraq and apparently well in with cross border neighbours, where, I think , the future may..pan out. But only an opinion and no I dont want to argue the toss with anyone thank you.
Its my day off and I am looking forward to a very interesting Lunch with some friends.....Arabs actually....they may know something but they are from Saudi so probably not of interest.
So to argue would upset the whole day, especially as I know .nothing, which will be obvious to anyone who takes the trouble to read this far....

good luck
alan

Iraq auditors target contracts corruption
By Beth Potter
UNITED PRESS INTERNATIONAL
Published February 24, 2005


BAGHDAD -- Since Iraqis think their government is corrupt, the Board of Supreme Audit will audit all contracts made since U.S.-led forces invaded in April 2003 to find out the truth, its new president said Thursday.

Some $8.8 billion of Iraq funds handed out by U.S. administrators to Iraq ministries is "unaccounted for" because of bad management, a U.S. audit report released at the end of January said. The money was to be spent on salaries, operating and capital expenditures and reconstruction projects between October 2003 and June 2004, according to a report made by the Office of the Special Inspector General for Iraq Reconstruction.

"The Iraq government needs to rebuild trust with Iraq citizens," said Abdul Basit Turki Saeed, Board of Supreme Audit president. "All contracts with all ministries will be audited, ones made locally or with international companies."

Saeed declined to say specifically what he would look for in the auditing investigation, although he said has the same questions others have raised in newspaper articles and rumors on the street. Salaries paid to "ghost employees," overpriced furniture contracts with kickbacks built in, billing for goods that weren't delivered, and ministers who flew packages of U.S. dollars worth millions out of the country are just a few of the complaints.

"I hope it don't find all of what I hear," Saeed said. "When we have the results of any investigation, I promise you, I will announce them."

Because interim officials knew there was no oversight, they did anything they could to steal money, said an official close to the United Iraqi Alliance, the Shiite Muslim coalition that won close to 50 percent of the Jan. 30 vote for the new 275-member national assembly.

"There is no accountability," the official said, declining to be named. "That's why public services have collapsed in the last few months. Just look at the fuel. Look at the electricity."

Consumers sit in long lines at gas stations around the capital, even though Iraq spends $200 million per month to import gasoline, oil minister Thamer Ghadban said recently. The Electricity Ministry has ordered several new generators worth millions of dollars, but power remains sporadic in Baghdad.

Ministry council officials, a group that includes key ministers and a vice president in the interim government, gave the audit order, Saeed said. Iraq's interim government is at a virtual standstill as wrangling continues over key spots in a new 275-member national assembly approved by voters Jan. 30 that's expected to be seated at the end of the month.

A recent Commission on Public Integrity report also highlighted problems at some ministries, the Alliance official said. The commission has no authority to build cases or haul people it suspects into court, however, the official said. The commission, along with independent inspectors general in each ministry, were put in place by former U.S. administrator to Iraq Paul Bremer. The Board of Supreme Audit existed under former dictator Saddam Hussein.

At the same time, Ali Maousin Alak, Oil Ministry inspector general, said he will create a training program to teach other inspectors general and their staffs how to deal with corruption.

"We have to make fighting corruption a priority. We have to build an impartial system in Iraq," Alak said in a speech to the Institute for Financial Studies at Baghdad University. "Our people must maintain impartiality."

Saaed was named to his job in October after previous head Ihsan Karim was killed in July when a bomb went off under his car during an Iraq investigation of the former United Nations oil-for-food program. The food-ration program operated in Iraq since 1996 under international sanctions to bring food and humanitarian goods to the country paid for by oil sales. No one claimed responsibility for the attack.

The misused $8.8 billion -- all of it Iraq money -- came from oil sales and seized assets in the Office of the Special Inspector General for Iraq Reconstruction report. Auditors could not tell if the monies were spent properly. The audit did not look at oversight for the $18.4 billion approved for reconstruction by the U.S. Congress in November 2003.
.......................................

This may be an answer for the continued delay.......if anyone is interested??