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

Greekman - source of above news please?

EK is not basing his shorting strategy on one failed well, but the wrong theory from a sheep called lucian, whom suggested PET will need city funding for Iraq. That is wrong, as PET have already stated they have Japanese funding in place. This was covered in some detail at http://lemminginvestor.com/secure/PetrelResoucesDavidHorganJuly27.html

EK also plays on the current climate of bombings, etc.

The fact remains the same as it was last year. Iraq is high risk, that has not stopped the share price from gushing above 133p and then bombing when news dried up, followed by the Reuters error, then exploding again when favourable news broke. The risks are high, short or long.

EK was also informed that Jordan has no oil. This may or may not be true, no one knows for sure but what Jordan does have is GAS. Gas is being extracted close to PET's new license area there.

PET were not in Jordan looking for hyrocarbons........they were examining the geology there to help interpret the data from block6 in Iraq as the rocks in block6 come close to the surface in Jordan. Whilst in Jordan their results prompted an application for a license which they now have. -They must have good reason for wanting the license!

Basically niether EK nor his tipster had done their homework on PET and now only have the security situation in Iraq to play on. That may be quite a substantial problem in itself but the potential rewards are also substantial. PET are in a very strong position in Iraq and Iraq badly needs to start producing oil as soon as possible. For Iraq to secure the loans it needs to rebuild the country it must first show that it can generate the revenue to pay them back.

PET recently gave a seminar to Iraq's government on oil exploration/production and profit sharing agreements after being invited to do so............Obviously well respected over there.

The big question now is will the US Government, sorry, the 'insurgents' allow PET to succeed here?

gildph.

Sorry meant to put the link. Its from BAGHDAD (Reuters)

http://thestar.com.my/news/story.asp?file=/2005/9/26/worldupdates/2005-09-26T115826Z_01_NOOTR_RTRJONC_0_-217333-2&sec=Worldupdates

Petrel Resources PLC
28 September 2005





Petrel Resources plc
Interim Results for the six month period to 30 June 2005



Petrel aims to become an Iraq centered oil independent. In recent months, we
have made major progress with the award of a large oil field development service
contract. The award is a major milestone after six years working on this
project. We will expand and accelerate our Iraqi activities, working closely
with the Ministry of Oil and local communities.



Oil Field Development



The Iraqi ministry of Oil has awarded Petrel the Subba and Luhais oil field
development services contract.



We have worked on this project since 1999. At $197 million contract price, it
is the biggest and most attractive of the oil field development contracts issued
so far. The project is located in a part of Southern Iraq where security
challenges are manageable.



There is an established infrastructure: site location is about one hour by good
road from Basra, whose port facilities can be supplemented, if necessary, by
those in neighbouring Kuwait, providing excellent staging points for deliveries
and services to support our work programme.



Our objective is to boost oil production from current levels of under 50,000
barrels daily to a capacity of over 200,000 barrels daily. A programme of works
will facilitate increased production in phases. Our contract has options to
become more involved in the field development plan as well as the responsibility
for the commissioning and start up of both the Luhais Central and North and the
Subba Central and North Stations and oil and gas export pipeline systems.



We will be working closely with the Ministry of Oil and hope to broaden and
deepen our working relationship. Petrel has started mobilising our Project Team
for Engineering definition and is in detailed discussions with main suppliers.



The award represents a statement of confidence in Petrel by the elected Iraqi
sovereign government and especially the internationally respected Ministry of
Oil. It would not have awarded this high profile contract had they not been
satisfied by the excellence of technical design and commercial approach.



Last week Petrel, together with other tenderers, sent a full team of all
disciplines for discussions to finalise technical commercial and contractual
points on the Kormor Gas Field Project, near Kirkuk in Northern Iraq /
Kurdistan. Negotiations were completed and the outcome is awaited. Our engineers
are now updating our offer in the light of these clarifications.



Following understandable delays in Iraq, while the newly elected government took
charge and reviewed policy, rapid progress is now being made towards the key
national goal of boosting oil production. Further projects are expected in
2006. Petrel will be an active participant in the tenders.



Iraqi Exploration



We hope that there will soon be swift progress, following the upcoming
elections, on clarifying the status of pre-war contracts and facilitating the
negotiation of new exploration and development contracts.



The industry hopes that a new Hydrocarbon Law will clarify the situation. This
may confirm the traditional pre-2003 Iraqi Model Contracts that were agreed or
under negotiation, including Petrel's interest in Western Desert Block 6.
Petrel has already identified targets and is ready to acquire closely spaced
seismic and drill wells as soon as legal title is confirmed.



In the meantime, it is possible to sign Technical Cooperation Agreements. These
give no formal rights, but give confidential access to much-coveted data on some
of the world's highest potential oil prospects. Petrel is especially interested
in the central area spreading Eastwards from the Western Desert into
Mesopotamia. Substantial progress has been made in negotiating the terms of a
cooperation agreement.



Petrel's plan is to invest in, where appropriate, reprocessing and
reinterpretation of existing 2D seismic together with regional work based on
surface geological sampling and satellite imagery. Our extensive work to date in
the Western Desert shows that much can be learnt from the application of new
techniques like Apatite Fission Tract Analysis and the integration of regional
data. After decades of sanctions, isolation and war, access to Iraqi data is
improving.



Other Arabian Desert Exploration



As part of Petrel's work on Arabian Desert hydrocarbon potential, our staff
collected data from Jordan, Syria and Saudi Arabia. The enthusiastic
cooperation and vision of the Jordanian authorities encouraged Petrel to
re-evaluate opportunities on the Jordanian side of the Arabian Desert. The
geology is complex. A reinterpretation of available data has shown that past
analysis and models were flawed.



In January 2005, Petrel signed a six-month Memorandum of Understanding with the
Jordanian Natural Resources Authority on East Safawi. This is a large (8,750km
sq.) exploration block bordering Syria and Saudi Arabia and is beside the
producing Risha gas field operated by the Jordanian National Petroleum Company.
The work threw up unexpected geological complexity. We have not yet finalised
drillable targets, but we are developing a model and believe there is a shallow
Triassic oil play as well as deeper gas and condensate targets. Applying new
techniques, including the reprocessing of 2D seismic, which previously yielded
poor definition images, has greatly improved our understanding. Petrel has
agreed a work programme and basic terms with the Jordanian authorities. We look
forward to formalising a Production Sharing Agreement soon. Any concession is
subject to Parliamentary approval and Royal assent.



During the six-month period ending 30 June 2005, Petrel recorded a small loss of
244,000. This is modest in relation to the scale of the projects Petrel is
working on and in relation to progress achieved. There is strong interest among
international financiers in Petrel's projects. We do not anticipate funding
difficulties.



Petrel is mobilising a strong technical team in the Middle East to address
progress both in Iraqi and neighbouring countries. Such opportunities come
rarely in the oil industry. Iraq is remarkably under-explored. The potential
is vast. The only constraints are guts and imagination. After the frustrations
of sanctions and conflict, we are now embarked on a thrilling phase of our goal
of contributing to the development of Iraqi oil resources.



John Teeling

Chairman

28 September 2005




Group Profit and Loss Account
for the six months ended 30 June
30 June 05 30 June 04
(unaudited) (unaudited)
'000 '000
Operating loss (245) (126)
Investment income 1 0
Loss before taxation (244) (126)
Taxation 0 0
Loss for the period (244) (126)
Loss per share (.40c) (.22c)



Group Balance Sheet
as at 30 June
30 June 05 30 June 04
(unaudited) (unaudited)
'000 '000
Fixed assets 2,597 1,782
Current assets 795 484
Current liabilities (219) (159)
Current assets less current liabilities 576 325
3,173 2,107
Share capital and reserves 3,173 2,107



Group Cash Flow
for the six month period to 30 June
30 June 05 30 June 04
(unaudited) (unaudited)
'000 '000
Net cash outflow from operating activities (223) (193)
Returns on investments and servicing of finance 1 6
Capital expenditure (378) (405)
Financing - issue of ordinary share capital 1,309 20
Increase/(decrease) in cash 709 (572)



Notes:



1. The figures for the six months to 30 June 2005 and 30 June 2004 are
unaudited. The financial information set out above does not constitute full
statutory accounts within the meaning of section 240 of the Companies Act
1985.



2. Copies of this announcement will be sent to shareholders and will be
available for inspection at the Company's registered office at 162 Clontarf
Road, Dublin 3, Ireland.



Contacts:


Petrel Resources plc
David Horgan + 353 87 292 3500
John Teeling + 353 1 8332833
Jim Finn + 353 1 8332833


Bell Pottinger Corporate & Financial
Nick Lambert + 44 (0) 7811 358 764


Rowan Dartington & Co. Limited
Barrie Newton + 44 (0) 117 9330011

A small loss and funding is in place, interests in Jordan, Syria & Saudi aswell.
Looking good.

Results to me look better than expected. Although losses have widened, it is by an insignificant amount. Cash amount increase looks OK. The main reason for optimism is that re stated fact of financial backing, as we well know their are large financial institutions just waiting to get on board, as well as those already signed up in partnership, ( the Japanese Bank ). With ever rising prices, and ever increasing shortages, no doubt the big oil companies are looking even closer at any potential success re new fields.

Irish Examiner

29/09/05

Petrel targets Iraq oil fields after 163m contract

By Ian Guider
EXPLORATION firm Petrel Resources is looking at several oil fields in Iraq after being awarded a $197 million (163 million) contract to develop a field in the south of the country.



http://www.examiner.ie/pport/web/business/Full_Story/did-sgZ DshZtDFRxcsgdL11Zs5FWAE.asp

Pet not involved, but the article shows how the steady stream of new deals in Iraq is starting to flow.

Crescent signs deal to drill for oil in south Iraq

Sep 30, 2005 - 11:09 -

Abu Dhabi, Sept. 30, 05 (WAM)-- Sharjah-based Crescent Petroleum yesterday announced it signed an agreement with the Iraqi Oil Ministry to undertake oil exploration and appraisal in south Iraq.

http://www.iht.com/getina/files/279619.html

Gasoline prices to surpass NIS 6 a liter
Haaretz Israel | By Sharon Kedmi
Tel Aviv, Israel

As widely expected, the price of gasoline will jump sharply at the beginning of next week by an average 5.83 percent.

For the first time, the increase in state-regulated gasoline prices will come in two stages. From midnight Saturday, maximum prices of 95-octane and 96-octane gas will increase by 0.69 percent to NIS 5.83 and NIS 5.87 a liter respectively (with self service fuel selling at least 11 agorot cheaper). But then from midnight Sunday, these maximum prices will leap by an average of 5 percent to NIS 6.12 and NIS 6.17 per liter. For the first time, fuel will cost more than NIS 6 per liter.

Since the beginning of the year, fuel prices have leaped by more than 30 percent.

What's best, panic with everyone else and get a tank full, or stay calm and go without. It makes sense to fill up, so why will the media say its panic buying.

Excellent article and news for PEt today, shall hopefully be followed up by a 7am RNS as the info is now in the public domain. Wouldn't be surprised to see this open up pretty high in the morning, not giving many of the shorters time to get out with all their profits. Shall be fun to see where the SP ends up tomorrow

Petrel signs Iraq oil deal 02 October 2005 By Eamon Quinn Irish petroleum explorer Petrel Resources is set to sign its second significant agreement this weekend with Iraqi oil officials to help to identify new oil resources in the war-torn country.According to market sources, officials from the Ministry of Oil in Baghdad plan to meet today in Dubai with Petrel and three other oil companies - Norway's Statoil, Dubai-based Crescent Oil and Gas, and Pertamina, Indonesia's state-owned oil giant.Petrel is understood to have won one of four technical agreements that will give it exclusive access to oil data from the Mesopotomia area of Iraq. The significance of the deal for the company is that it confirms that Petrel has made inroads into pitching for contracts in Iraq.Petrel chief executive David Horgan has visited the country on numerous occasions during the worst of the violence there.It is believed the ministry has offered the company an agreement to view data of a geological area in the western desert. The area is known to have significant oil-bearing potential.It is unlikely that Petrel will gain rights over the area to which it has been given access, but the geological data will give it an advantage if it were to be offered the chance to develop any oil fields in the future. Petrel is likely to have access to the data for the next 12 months.Earlier this month, Petrel won a 164 million contract to develop two oilfields in Iraq to quadruple production to 200,000 barrels a day.It won the contract to develop the Suba and Luhais fields in southern Iraq to boost output from less than 50,000 barrels a day.Petrel shares, which have traded as high as 133.5 pence on London's Alternative Investment Market a year ago, were trading at 60 pence on Friday.

http://www.thepost.ie/post/pages/p/story.aspx-qqqt=MARKETS-q qqs=themarket-qqqid=8428-qqqx=1.asp

thats strange the moo are offering them data but nothing else or perhaps this is a cover for block 6!

dyor

good luck holders tomorrow anyway........

NO RNS as yet, don't think this is a cover for block 6, as PET have been asked to organise a focus group on PSA awards in Iraq by the MOO, then they are given this, a block that borders with Syria (regional play), doesn't take a genius to work out what is happening. Those contacts we have been talking about for the past year or so are finally starting to show fruit, as PET truly are the 1st European company to be getting a foothold in Iraq

Good rise on expexted news.

See the news.

Petrel Resources signs cooperation agreement with Iraq Ministry of Oil
AFX

THE BEST IS YET TO COME// buna.

Pet appear to be receiving more coverage lately. The following have news items re their, Subba and Luhais oilfield development service contract.

Unison ie .http://http://www.unison.ie/business/stories.php3?ca=80&si=1483833
The following are obviously similar to the above link, of the Unison article.
Irish Examiner
Irish Independent
RTE News

Pushing for oil.
http://http://www.iraqdevelopmentprogram.org/idp/news/new1045.htm

Iraq sweetens oil contract terms (07/10/05)

Is this an old quote or are Pet still expecting pre war contracts to be honoured. ( I as most take it that No pre war contracts were actually signed so why is the Iris Examiner.com still stating contracts signed ). Am I wrong or does the said Irish Examiner need putting right.

One extract from todays article.

However, a Petrel spokesperson said that they would expect pre-war contracts to be honoured and the fact that the company has been approached to carry out initial studies at Merjan should benefit it greatly if a significant find is made.

http://www.examiner.ie/pport/web/business/Full_Story/did-sgn8QLMpqr7f6sglO-LCk0lQvU.asp

Having trouble with the links system.