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

Down to 78p today

Hi wilbs,
i`ve not been to see the canaries yet, although it will be easier to get tickets this year!!. I`m sure you will be around in Nov., just think +, still not bought back in just yet, still think there is some downside to come IMO.
Dexter

Dexter01 - check out FYB, a few e-mails from DH about being delighted on both fronts, i.e. S&L AND Jordan.

Weekend press + Jordan announcement coming, pretty sure the isn't much of a downside before it starts to head North!!!(hope you are able to get in though)

Here is the e-mail for those without access

just got this ultra quick response from DH (emailed him earlier this evening) which replicates what OwtOrNowt found on the other side.

I am now very, very excited........












Many thanks!
We are delighted with progress on both fronts.
DH

-----Original Message-----
From: xxxxx[mailto:xxxxx@xxxxxx.co.uk]
Sent: 09 September 2005 17:01
To: David Horgan
Subject: S & L

Dear David,

Congratulations on the success of S & L, I am delighted for you and
very pleased as a shareholder.
How did the Jordan PSA negotiations go? I hope they went well. Anyway
best of luck.

Steve

OwtorNowt found this, not sure where -

Indeed, it is a sign of its standing in the troubled country that Petrel has been asked to organised a seminar for 15 of the oil ministrys top financial experts to look at issues such as production sharing arrangements and how to deal with pre-war contracts.

This is, of course, an issue very pertinent to Petrel itself. The company holds a now suspended pre-war contract for the highly touted Block 6 in the Western Desert. It had been fearful its position there would be displaced under the new regime.


---------------


both must count as yet more positive news for Petrel

Petrel to make 16m profit on three-year Iraqi oil deal

11 September 2005 By Laura Noonan
Petrel Resources will make more than 16 million profit on the 160 million Iraq oil contract it announced last week, The Sunday Business Post has learned.

Petrel was awarded a three-year development service contract for two oil fields in southern Iraq. The company is hoping to boost oil production there from50,000 barrels a day to 200,000.

This is a huge deal, said David Horgan, Petrel's managing director. We will be producing more oil per day than Ireland's consumption.

Horgan said the deal would see Petrel expand its operations in Iraq from 12 people to several hundred. Most of the new jobs will go to Iraqis, Horgan said, but some skills are not available in Iraq, so a limited number of jobs will be created in Ireland.



The company's share price on London's Alternative Investment Market (AIM) soared by more than 134 per cent, to stg98p, last Wednesday, when news of the deal was announced.

Petrel chairman John Teeling, who holds about 3.6 million shares in the company, saw his paper wealth increase by more than 2.3million during the week, while Horgan, who holds about 2.7 million shares, made paper gains of almost 1.5 million.

Most of Petrel's share capital is held by institutional investors. When we announced it, I got several calls from institutions asking would we need further funding and how much notice would they have before we did it,' Horgan said.

Horgan said Petrel was also hoping to announce a very attractive exploration study agreement' in Iraq in the near future.

that sounds very promising 16m euro's and a "very attractive exploration study agreement" hopefully block 6.........a blue monday we hope!

Dear OwtOrNowt (always loved your user name especially in relation to PET)

Thanks for the link, you really are finding some gems in relation to PET. I'm hoping the market finally starts reacting to this news, now that we have a profit figure of 16m Euros - 10,815,564 pounds


10,815,564 pounds / 3 years = 3,605,188 pounds per annum / 58,215,150 = 6.2 pence (EPS)

EPS x P/E of 10 = 62 pence

EPS x 15 = 93 pence

EPS x 20 = 124 pence



This is of course only on the S&L contract alone, now we have news of further contracts in the near future from Iraq, and of course the PSA from Jordan, we should be seeing even further rises

Petrel certainly seemed to have arrived(2 years before any other European company, now is that money in the bank or what?), and at the current SP it is looking exteremly undervalued.

Perhaps even an P/E ratio of 20 is too small for a growth company with Petrel's potential


When we announced it, I got several calls from institutions asking would we need further funding and how much notice would they have before we did it,' Horgan said.

Horgan said Petrel was also hoping to announce a very attractive exploration study agreement' in Iraq in the near future.


As Horgan has stated that he would not like to dilute the company with further placings, Does this mean that the institutions wishing to jump on board will have to get the shares through the market????

They can have mine for 10 each!

Elvil has gone short on pet.

And finally to Lucian, I should at last admit that you have come up with a good idea. Perhaps, after all you might be able to splash out on that extra portion of jellied eels this weekend. In a surprisingly sober message on my answer phone young Miers suggests that I should short Petrel (PET) on the basis that its first deal is unquantifiable in value, that Iraq is a pretty risky place and that Petrel will surely be passing the hat around again at some stage. The diarist thinks that I am wrong which convinces me that I am right and that for once Lucian may have stumbled upon something useful. I am now short of the stock.

wilbs

Wilbs that is a worry in the short term. It's difficult to deny the logic of Evil shorting PET on the above basis. There doesn't seem to be much to stop it drifting cos that's what it does. However the next deal announcement will make it spurt upwards again. And as we all know you need to be either in for the long term with PET or be extremely light on your feet and trade it ruthlessly.

16m euros doesn't exactly set the world alight on its own. However it is at least something in the bag and shareholders can now settle back and await further developments......

Agree beasties. Hopefuly it wont be long till we hear about jordan and that will like you say, we will se a spurt upwards in the sp. I hope he gets stuffed like he did on wnl.

EK has big fat short on this one be carefull

MM's picking up the stock being shorted at discount, don't be fooled into selling, remember RNS due on Block 6 anytime after 2.30pm

If an RNS is due on Block 6 anytime after 2:30pm, then why so many sells leading up to that time?

Have I missed something here?

When the last RNS was released the MM's diddnt have a clue it was coming and when it did the sp flew. IMO they want the stock and want it cheap. Level 2 has been stuck on 5 v 5 nearly all day and with a spread of 12.5% is enough to deter any buying so PI's are happy to take a good profit.

wilbs

As soon as I said that L2 moved to 2 v 3.

Remember the impatient give shares to the patient, stay in until the RNS released

Or longer!!

Bottomed out, buys coming back in