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

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.

Evil's latest on PET

I have revisited a couple of old favourites from the oil sector. Bowleven (BLVN) has an uninspiring batch of assets and a less than inspiring management team and I have opened up a decent short. But my big play is to revisit Petrel Resources (PET), the enterprise chaired by the good Dr Teeling. As a shorter brother Teeling's companies have made me a fortune over the years and indeed Petrel has contributed 40,000 pounds to the pension fund this year alone. On Friday the good Dr served up news of another deal in Iraq. It strikes me that one must apply a very heavy risk weighting to deals done in a land which is more murderous and lawless than even the worst parts of Coventry and where the political regime makes a relationship with Kimberley Quinn look like a good long term bet. The Good Doctor has yet to let me down and I am confident that this short will be as profitable for yours truly as all my previous shorts. As my dear friend, the late Hanse, used to say: "this looks like a sure bet."

44 soon with a bit of luck !

Now we know the Evil one is still shorting, buy as many as you can when it hits 44p

On the move again up 8%

?

Moving again up 10% today

Something's brewing and with 'gas' being the hot topic in the press now, I suspect it could be Jordan. Fingers crossed and DYOR.

Large increase in sp for small number of buys, faise dawn I fear.

looks like there is a possible news coming out soon, not aware of any myself but hoping if there is one it is good news. anyone out there have any clue on whats going on?

they tend to release RNS about 3pm to coinside with the dow.heres hoping

Guardian Unlimited, UK
Petrel Resources rose 5p to 64p, taking its gains over the past two days to 20%, amid rumours of further oil exploration contracts in Iraq. ...



So now we know. Could be another rumour, but you never know for sure. Nearly all solid news re this share leaks out.

RNS news out now today

Yes, and it is great news. Pet are now coupled with an Iraq company. They are showing that this is the way forwards. This will IMHO influence other potential contracts. Also although doubting that the violence will stop, agreements such as this must go some way in making Pet a less likely target for the insurgents.

For the first time since North Sea oil was at full production, this country will be a net importer of oil ( 2006 ) and things can only get worse as our reserves run down. This is only one example of established oil reserves running to wards empty. New fields must be found. As we know, Jordon looks to be a fairly safe bet due to it's relatively peaceful state ( compared to most Muslim countries ) with obviously Iraq as the star prize for reserves if not the ability to keep the oil flowing at present.
As stated many times on this thread, the major's are just waiting for the minow's to get settled. They will then pounce and there will be little that companies such as Pet can do.
Every company has it's price. Hopefully Pet's price will be high enough to make us all better off.

Whilst not wishing to get into a political debate, the following will no doubt heighten the importance of increasing oil production from such places as Jordon and Iraq ( obviously as well as many other middle eastern countries ).

Iran's new hard-line government may have decided that the value of developing a nuclear capability would outweigh possible punishments, especially at a time when it is earning huge amounts of money from oil exports. President Mahmoud Ahmadinejad repeatedly has angered the West in recent months, including calls for wiping Israel "off the map."

My personal view.
The major powers, along with many smaller oil dependent countries can not and will not impose oil sanctions on Iran ( cut of nose to spite face springs to mind ). Now if oil output from other countries ( Jordon, Iraq ) can cover any sanction loss from Iran, that would be another matter.
All imho of course.