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

WOW now 16% up

No idea, something has to be in the wind. Can't just be the MM's doings.

Level 2 going a bit daft, looks like still to go up if I read it right.

Now nearly 20% rise. Hope it's not another false dawn. Anyone out there have an inclin what's happening

Someone obviously must have,nothing goes up 20% for no reason?,lets see if there is an rns?

Pause now, people waiting

This is the only thing I can find that might be good news for PET.
See link for full article. Views appreciated.

The announcement of the DNO drilling took many Iraqis by surprise Wednesday.

"This is unprecedented," said Alaa Makki, a leader of the Iraqi Islamic Party, a Sunni Arab group. "It's like they are an independent country. This is Iraqi oil and should be shared with all the Iraqi partners."

Makki said Kurds were trying to have it both ways, controlling the Iraqi presidency and several powerful ministries in the national government while also trying to lay claim to extra-constitutional powers in the north. Jalal Talabani, a Kurd, is the Iraqi president.

However, Helge Eide, managing director of Oslo-based DNO, said he believed Iraq's new constitution gave the Kurdish north jurisdiction over certain drilling and oil exploration activities.

http://www.kurdmedia.com/news.asp?id=10745

MM short of stock, i guess, Buy now and you will make money

Sp has just moved up again. The spread is also narrowing, looks like they need punters to sell. Spread narrowing so I expect some profit taking very shortly without firm news.

Don't sell, I have heard RNS being released tomorrow!

Nkirkup,

Where did you hear this or are you saying you are privy to inside info,

If you look back a bit, several of the most recent releases by Pet, contracts/agreements etc have been released mid afternoon????.

On the move again!

Will be interesting to see if there are any large buys reported late.
It would be nail biting time if I had any left. Now I could sell to take some profit, but the last time I did this with other shares the SP went up within 30 mins.

Cant see there being an RNS tomorrow, Friday being the Sabbath out there. But I sure dont mind if I am wrong

Guys...this share is so much dependant upon the Iraq political situation....this rise could even be connected with the USA statement yesterday whereby they said that suicide bombings have reduced dramatically in the last few weeks...this was followed by the Iraqi govt saying that they are gradually gaining control of the insurgents
It is widely expected that once the situation quitens down then Iraq along with Petrel can get oil industry moving and then there is a lot of dosh to be made by all

I was proved wrong RNS out, SP is on the move,go go

Petrel Resources PLC
02 December 2005


Petrel Signs Iraqi Contract


Further to the announcement made on 7th September 2005, Petrel is pleased to
announce that it has formally signed on 1st December 2005 the Subba & Luhais oil
field development services contract with the Iraq Ministry of Oil.


The project is to develop existing reserves to raise production from under
50,000 barrels of oil daily to over 200,000 barrels of oil and 120 million cubic
feet of gas daily.


Petrel has mobilized a development team: initial work is mainly engineering
design. We plan to conduct site surveys in close cooperation with Iraqi
Ministry of Oil officials early in 2006.


The Subba & Luhais oil field development services contract is for $197.4
million.


Contacts:


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 Dartingon

Barrie Newton +44 (0) 1179 330011


This information is provided by RNS
The company news service from the London Stock Exchange

hope the contract news brings in a few buyers

I expected some profit taking today on release of the RNS. Don't forget shares in companies such as PET are well day traded, so those such traders taking a profit have done well and good luck to them. I was out all day, but if I had been available when the SP rose to it's days highest I would have sold a percentage of my shares at a profit to cover all my PET holdings. And I am NOT a day trader. The RNS IMHO although good news in itself is not the main benefit to PET, it's the proof that they can deliver and have now got a great confidence boost for further contracts. It would not surprise me if over the next few weeks the major oil companies really start to sniff around which in itself will effect the SP. All conjecture of course but this is usually the way when the minnows of any industry start making gains into territory where others want in. If these majors go into Iraq on the back of companies such as PET they often don't have the hassle that they would if going straight in under a LOGO such as SHELL, BP etc.

Found this on the Globalresearch web page and found it interesting.
Thought others might also find it so. It is a free published report available to all so have posted a fairly large section although not the full article as still cautious re any copyright infringment.

http://www.globalresearch.ca/index.php?context=viewArticle&code=BOW20051203&articleId=1396

On the Road to Damascus
by William Bowles
December 3, 2005

PSAs are effectively immune from public scrutiny and lock governments into economic terms that cannot be altered for decades. The potential losses to the Iraqi people are staggering, the most conservative estimates puts it at $94 billion over the usual (25 year length of a PSA contract) assuming oil at $40 per barrel and $250 billion if the cost is $50 per barrel!

PSAs first appeared in Indonesia in the late 1960s (not surprisingly following the US-inspired and backed overthrow of Sukarno). PSAs are an ingenious arrangement as PSAs shift the ownership of oil from companies to the state, and invert the flow of payments between state and company.

The report states the following facts about PSAs

A right to oil reserves. Companies want a deal that guarantees their right to extract the reserves for many years, thus ensuring their future growth and profits. Furthermore, they want a contract that allows them to book these reserves including them in their accounts which increases their company value. Production sharing agreements, like concession contracts, permit companies to book reserves in their accounts.
An opportunity to make large profits. Generally, oil companies make their profits from investing and risking their capital. In some cases, they lose their capital, for example when they drill a dry well. But in some cases they will find large and hugely profitable fields. Oil companies are therefore very different from service companies like Halliburton, which make money from fixed fees on predictable contracts. Oil companies aim for deals which may be more speculative, but which give them a chance of making super-profits. Production sharing agreements are designed to allow companies to achieve very large profits if successful.
Predictability of tax and regulation. While companies can accept exploration risk (that they wont find oil) or price risk (that the oil price falls), both being beyond their control, they try to manage political risk (that tax or regulatory demands will increase) by locking in governments. They thus seek to bind governments into long-term contracts that fix the terms of their investment. Production sharing agreements generally last for 25 to 40 years with terms protected from potential change by incoming governments.

END OF ARTICLE.

I was aware that PSA's are often for 20 years plus, but I was not aware that they tied in the contracting country so tightly with the company involved. I would like to see full details of the PET contract but probably not understand it.