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

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

NKIRKUP....yes,great news,things now look very attractive for PET...now things can get moving...

Petrel Resources plc announces that it was informed on 3 November 2005 that
Gartmore Investment Limited, Gartmore Fund Managers Limited and Gartmore Global
Partners are now, following a recent purchase, together interested in the
4,687,060 ordinary shares in the Company, representing approximately 7.069 per
cent. of the Company's issued share capital.
Gartmore increasing again, a good sign.

Is something brewing?

Why do you ask ramu?
3.67% rise is nothing compared to the recent drop in sp and low volume of trades.

wilbs, over at ADVFN, one poster, Reset is of the opinion there will be news before 23 Nov. Also, since Friday the buys, though relatively small have been consistent and SP has moved from a low of 50p last week.

I wouldnt belive everything you read over there ramu. Actually, dont belive anything you read over there, its ramper/de-ramper city.
We are waiting for some news from PET but im sure the city & MM's will get wind first and there's bound to be more volume, sp rise and MM's tricks. I may be wrong but from experience of PET over the last year, whispers of news propell the sp into outerspace shortly followed back down to earth.

wilbs

wilbs, you are right about some posters ramping/deramping and your experience of PET shares.

Daily, I read the financial BBs and after a few years surfing these websites, you learn to spot these type of posters. However, despite what people say about ADVFN, there are some really 'good' tips and as the AIM is now plagued with traders instead of investors, you learn about the traders' mentality regarding shares like PET, VOG, CWO etc (all high risk plays and volatile). Nowadays, some of us days just hop in/out for the short ride after the hype but before the SP tanks. As usual timing is everything! All IMHO and DYOR.

Iran and Iraq reopen trade
Staff and agencies
22 November, 2005





By Ahmed Rasheed 2 minutes ago

BAGHDAD - Once a bitter enemy, Iran is emerging as a trade lifeline for Iraq as Baghdad seeks to rebuild an economy shattered by years of sanctions, neglect and corruption under Saddam Hussein and since his overthrow.

As Iraq picks up the pieces, it is becoming a key market for its neighbours, especially Iran which it fought from 1980-88. Many Iraqi business people say it is easier to get goods like vegetables from Iran than from some parts of Iraq itself, where insurgents sometimes target truck drivers.




My comments/veiws. FOR FULL ARTICLE SEE LINK DUE TO COPYWRITE.



Much of the trouble in Iraq is from insurgents , and third country terrorists crossing the boarder from Iran into Iraq. Sworn enemies for many years, a newish understanding is being formed( see link to full report ).
It appears that trade between the two countries is increasing, mainly to the benefit of Iran. The quicker the troubles calm and the money starts to flow to the Iraq people as it will even allowing for a big slice to foreign companies, the more goods can/will be bought from Iran. even if one country hates another, when cash is in the pot its amazing how countries can get on. Closer ties will see Iran patrol it's boarders better as they will benefit from this as Iraq will. Also Al qaeda has according to the Daily Telegraph stated that the wedding party that were attacked about 2 weeks ago was unfortunate. This is the first time they have made a so called near apology. ( The IRA used to make the same type of statements ). Could this be due to the fact that more Iraq people are turning against Al qaeda due to most of their victims being fellow Muslims. All this could imho lead to a turning of the violence to wards a state were business can prosper. Peace it's self can never be 100% as the hatred goes too deep. We all know oil is the key, perhaps that key is beginning to open a few doors.

http://www.leadingthecharge.com/stories/news-00103223.html

PET on the move today up 8% last 10 mins, anyone know why?

WOW now 16% up