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

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.

While I am not a great fan of Teeling I think in this case he has got it right. Continuity in past arrangements has always been my experience in these areas. The same people will be making the deals under a different banner. Be aware, progress will be slow, they do like all interests to be in line and this is very often misinterpreted by us, it is just their way of coming to a decision. Different cultures do things differently.

http://www.timesonline.co.uk/newspaper/0,,2769-1817022,00.html

Nice write up in the Sunday Times... For full article see link.

Minnow Petrel reaps rich benefits of doing the business in Baghdad
Graham Walsh



PETREL Resources retains a presence in Baghdad, but it certainly isnt a case of business as usual, according to David Horgan, the managing director of the Dublin-based oil company ploughing a lonely furrow in Iraq.

A nice couple of reports.

Reuters, comment by Ahmad Chalabi

"U.S. and British oil companies should have the first right of refusal because the United States and Britain committed to the liberation of Iraq. This is still my view. It may not be shared by the rest of the government."

( hope he is including Ireland in this )

http://today.reuters.co.uk/news/newsArticle.aspx?type=topNews&storyID=2005-10-10T044306Z_01_KRA002405_RTRUKOC_0_UK-ENERGY-IRAQ.xml

A very good background article re the state of Iraq oil industry, and its history. Its fairly long but well worth a read. Link only due to articles length.

http://www.mees.com/postedarticles/oped/v48n41-5OD01.htm

500,000 pound buy earlier, someone very confident.

forest that was part of the placing of 2.6m the other day.but still good anyway.

Petralva,

If the 7.18 delayed trade 769,231 buy was part of the placement would it not be marked down as a T trade or maybe as a unknown trade ?

Another excellent ( but lengthy ) article on Iraq's Oil. Well worth the read, but as said lenthy so will only put link, and a small snippet.

http://www.uruknet.info/?p=m16729&date=13-oct-2005_18:13_ECT

Can Attacks on Oil Facilities lead to Peace?
Mike Whitney

Most experts don't believe that Iraq will be able to substantially increase its exports for at least the next 2 years. This is a dramatic contrast from the neocon's predictions that Iraq would be pumping 3 million barrels per day by now. That would have kept the world awash in petroleum and America shielded from the impending recession.

several pages on iraq some with petrel resources,

http://www.iht.com/articles/2005/10/13/business/iraqoil.php

greekman,

i doubt that, but 3m would have certainly helped..

i am thinking of a risky punt here

Strike it lucky

16 October 2005 By Eamon Quinn
Tullow made it out of the ranks of the minnows in recent years, and its transformation has left investors waiting for the next success story. A breakthrough for an Irish oil explorer is already overdue, analysts say.

The Irish candidates to make the next move from minnow by hitting oil or gas include Petroceltic, the Algerian and Italian oil explorer run by oil veteran John Craven; John Teeling's Pan Andean and Petrel Resources; Harry Wilson's Sterling Energy; Tony O'Reilly's Providence; and the AIM market newcomers, including David Hough's Circle Oil and Gas and the Irish-focused Island Oil run by Paul Griffiths, another veteran of the Irish oil scene.



The best market conditions in over a decade - crude prices last week were trading at $62 a barrel compared with $45 at the start of the year - has pushed the shares of speculative oil explorers to new highs.

But a major oil find could transform a speculative minnow explorer overnight into a respectable junior oil producer. Getting there is no sure thing.

The share prices of the Irish-based exploration companies have spiked this year and many have subsequently fallen as prospects came and went.

The economics of the industry should be sobering for investors. Industry leaders estimate that the daily cost of operating a rig in Irish waters can be as much as $210,000 (e 175,000) each day. Even acquiring a rig in the current tight market is a major task, while delivering a rig to Irish waters from the North Sea can cost the operator as much as 3 million.

The rewards of a winning bet are, of course, huge and it is no wonder that the exploration stocks trade on newsflow.

Making sense of the sector can be daunting for the oil investor.

For Stuart Draper, head of research at Dolmen Securities, Petroceltic is the pick of the Irish oil exploration sector. Its quality prospects in Algeria, credible' management and $20 million of net cash on its balance sheet mean that it does not need to come back to shareholders any time soon.

Royalties of $250,000 a year from the Kinsale gas field also mean useful funding as Petroceltic plans to start drilling in Algeria by early next year.

Neighbouring blocks to those owned by Petroceltic in Algeria have been acquired by BP, and Petroceltic is expected to announce a major tie-up with a drilling partner.

Petroceltic shares, which fell sharply late last year when its Tunisian prospects disappointed, have traded around 12.5 pence this year.

Dolmen's second most favoured among the Irish-based oil companies is Sterling Energy, an oil and gas producer with a small exploration arm.

Its purchase last year of assets in the Gulf of Mexico has helped it to tap surging energy prices and boost revenues.

Meanwhile, by farming out its production licences, Sterling shares hit a high of stg20.5 pence last July.

The shares have since slipped to stg18pence as investors wait for the execution of plans to ramp up production from Mauritania early next year.

Circle Oil, which came to the market last year, attracted investor attention after its deal with China Shine to develop its huge prospects in Namibia.

According to brokers, the deal means that it will not have to raise huge amounts of money from shareholders.

The shares have slipped back to around 35 pence since the summer as investors wait for more news on its Namibian development.

According to Dolmen, the highest-risk share remains Providence Resources.

We have greater confidence in Petroceltic in Algeria than Providence in offshore Nigeria and offshore Ireland, said Draper. Their strategy is not quite clear to investors, and we are just not comfortable with them.

Providence last week announced plans to carry out a major seismic study with Island Oil and Gas of its offshore Ireland prospects.

Meanwhile, shares in Iraq-focused Petrel have traded in line with hopes that chief executive David Horgan's visits to Iraq will deliver contracts for the company.

Petrel shares spiked to stg100 pence last month when it announced it had won a contract to develop an oil field in Iraq.

The shares have traded around stg60 pence since winning a second and significant contract to examine data in the Mesopotamia area of the country.

According to market sources, Petrel could be about to announce a deal with a Japanese trading company which is seeking to acquire oil.

Petroceltic

The main focus over the past few weeks for John Craven, the chief executive of Petroceltic, has been to prepare the company to start drilling in the Algerian Sahara by early next year. Getting a road laid across the desert to enable the start of drilling is just part of the work.

The company is appraising existing oil and gas discoveries across a 10,800 square kilometre area in the country after nine discoveries were made on the block since the 1960s.

Petroceltic will probably drill two wells initially in Algeria, as part of plans to drill up to seven wells in the next 24 months across Algeria, Italy, Ireland and Tunisia.

In Italy, Petroceltic has attracted interest from Italian oil companies for its offshore interests there. Its main Irish licence is in a gas prospect in offshore Donegal, north-east of the Corrib discovery. Craven said the company planned to drill there next year.

Following its initial disappointment in Tunisia, it has been offered a prospect there and may also drill there next year. There is a nice newsflow ahead of us, he said.

Petrel Resources

Petrel's David Horgan recalls how difficult it was to raise funding to develop licences before the war in Iraq.

We had a funding at stg3 pence and John Teeling was one of the few people to see the opportunities there, said Horgan.

Horgan's hard work has paid off with the award of two contracts from the Iraqi oil ministry in recent weeks.

Whether the contracts are the doorway to Petrel winning major business in Iraq in future years remains to be seen.

Island Oil and Gas

Paul Griffiths, who formed Island Oil and Gas in 2003, raised stg8 million privately and brought it to the AIM in December last year at stg40 pence. It now has a mixture of private investors and institutions, including Gartmore.

Management owns about 30 per cent. It was trading last week at stg60 pence.

Griffiths worked alongside Petroceltic's Craven at Gulf Oil when the company discovered Ireland's first significant oilfield in the 1980s. Though mostly focused on Ireland, Island is also seeking a licence in France.

We understand how to do business here, said Griffiths.

The company has numerous interests in offshore Irish prospects but generates its main revenue stream from its 12.5 per cent stake in the Seven Heads gas field. Unlike Ramco, Island has no debt tied up in the field

Nice blue start!!!

Yep.

Recent market rumours suggest PET will announce Japanese funding for developments in Iraq. Lemming Investor had confirmation from David Horgan last year, but nothing official has been announced. Well, nothing with any detail attached.

from Lemming Investor.com July 27 2004

Lemming Investor: 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.

Lemming Investor: 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.

Official evil twat closes his short.


Sportingbet (SBT) is one of many companies to have reported me to the FSA with absolutely no effect. Do not these fools know that my new friends at the FSA regard me as highly entertaining? But one good turn deserves another and I have decided to go short once again. I note that its trading statement seems robust enough but this whole sector seems to suffer from an appalling lack of visibility of earnings and as such the current rating is barmy. I have however closed my short in Petrel (PET), netting a 40,000 gain. I should like to thank the good Doctor Teeling for providing me with such an excellent trading opportunity and await the next tipster-driven ramp as my next opportunity to go short. Dr Teeling you are truly a generous benefactor and the vintners of Kensington have been singing your praises all week.

To me it looks as if Gartmore have sold. Reason being in an RNs ( the last one pre todays re Gartmore Holdings )stated ............................................... ......... Petrel Resources PLC
01 June 2005

Petrel Resources plc announces that it received confirmation on 1 June 2005 that
funds managed by Gartmore Investment Management plc have sold 143,113 shares on 20th May 2005 and are now interested in 4.77 per cent. of the issued share capital of the Company.

The latest states Gartmore now hold approx 3 percent.. Whilst apreciating that the share price has altered since 20th May the issues total of shares has not altered to any great extent, so it must be the percent of issue that counts.

Thats how I read it, although I fully agree that any such RNS should have to state if it was a buy or sell. Its a pity the rules of the LSE allow such open ended anouncements.

Looking good for PET holders, they have agreed the new constitution today.

http://news.bbc.co.uk/1/hi/world/middle_east/4374822.stm