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

From the Independent today. Looking very good.

Oil bonanza stays in Western sights after cosmetic change to Iraqi deals
By Tim Webb
Published: 25 February 2007
The final draft of Iraq's controversial hydrocarbons law has been submitted to the Iraqi Cabinet ahead of its presentation to Parliament for ratification next month.

Iraqi officials have attempted to defuse the backlash caused by last month's revelation in The Independent on Sunday that the law would grant foreign oil companies a large slice of the country's oil reserves.

The final draft has quietly dropped the term "production-sharing contracts" used in earlier drafts. These contracts involve energy companies paying for the initial investment in an oil field but reaping bigger returns if their gamble pays off.

The proposed introduction of production-sharing agreements in Iraq is controversial because they are usually used in challenging regions where oil is difficult and expensive to access, such as the Amazon. By contrast, much of Iraq's 112 billion barrels of proven oil reserves - the second-largest in the world - has already been discovered and is cheap to drill.

But the draft, seen exclusively by The Independent on Sunday, still proposes handing over exploration and production contracts for up to 32 years - far longer than most deals between companies and goveernments.

The draft empowers the new Federal Oil and Gas Council to set the exact terms of each contract, but given Iraq's parlous economy and security uncertainties, the terms offered are likely to be very generous. Greg Muttitt, a campaigner from lobby group Platform, said: "This is a huge amount of time. If contracts are signed in the coming months... there will be a massive risk premium, and the Iraqi side would be negotiating from a position of extreme weakness. As a result, the terms would be highly profitable for the companies, and Iraqis would be unable to change them for 20 years."

Other differences between previous drafts include the omission of a requirement for the terms of each contract to be published within two months. Now, according to Article 36, only non-specified "financially significant" details need be published, and no timeframe is given.

Iraqi unions have expressed their opposition to the proposed law. In a speech earlier this month to a conference, Hassan Jumaa, head of the Federation of Oil Unions, said: "We strongly warn all the foreign companies and foreign capital in the form of American companies against coming into our lands under the guise of production-sharing agreements."

Foreign oil firms already operating in Iraq are anxious not to antagonise unions as some may have links to insurgents who could target oil installations.

David Horgan, managing director of Petrel Resources, an AIM-listed oil company focused on Iraq, said contracts could be renegotiated by the government.

"The term 'production-sharing agreement' used in previous drafts has been dropped because of the controversy the term caused. They have built quite a lot of flexibility into the law. It makes sense to reward companies who start work now when the security situation is bad. The terms can always be made less attractive in a few years when things calm down."

He added that the Iraqi government had changed its approach in recent weeks over the hydrocarbons law. Rather than trying to force it through, particularly in the face of opposition from the Kurds in the north seeking more control over their oil resources, officials have attempted to achieve consensus within government, he said.

Last weekend, past and present officials from the oil ministry met in a hotel in Jordan to hammer out the draft's final details.

history shows that the following sweeping statement taken from the above article, is bold in the extreme ..... "As a result, the terms would be highly profitable for the companies, and Iraqis would be unable to change them for 20 years" ...... believe that and you'll believe anything, which is not say that PET is not a good bet, though i have no view on the matter.

Forest,,,yes things looking better and better for our PET...one of the best oil plays around

Should be very interesting from here on.

Troys...yes,very

Until the Iraqs kidnap your crews and burn your wells. There is NO stability in the country and you lot think you can take their life blood. Time will tell.

Looks like jordan PSA has been paased.

Amman-the Constitution-Aleneimat facilitate : the Cabinet decided to approve the signing of a memorandum of understanding three agreements and participation in the oil and gas production in m spokesman northern highlands and Alsarhan, East and West Els Fawi.
The Council decided during the meeting held yesterday evening repair seh Premier known Bakhit approval p I participate in the oil production in the password come with the company. Universal Energy Limited
The Council also decided to approve the partnership agreement in oil production in the West Safawi with Global P. etroleum. and the participation in oil production in the east of Safawi with Irish company Petrel. The Minister of Energy and Mineral Wealth, Dr. Khalid Al in a press statement following the meeting of the Council of Ministers that the the government will sign a memorandum of understanding with the company told Croatian Ainl assessing the northern highlands respects Eljy To Wajih and geophysical view to reaching agreement participation in production with this company in the field of oil and the Gas, noting that the area of the study area will be around in 7500 so Ometer to square one and four months of the memorandum of understanding are SUPPLY the hands for a further two months.
It is expected that the costs of this study 300 thousand Du Laar dollars

Oil & Gas News Online: Majors await Iraq oil offer

Posted by Royal Dutch Shell Plc.com at March 5th, 2007

LONDON:

The Iraqi cabinets recent endorsement of a legal framework for the oil sector removed a key hurdle to foreign investment, but Western oil companies do not expect Baghdad to lure them with giveaway terms.

A consensus has formed on what future oil contracts should look like, oil executives say despite a backdrop of bickering between Baghdad and the Kurdish authority over control of oil revenues and whether a national oil company should oversee contract negotiations.

Contracts are now expected to be based on formats that set tight limits on the foreign investors upside.

Any deal has to be seen to be fair and in Iraqs interest, otherwise it wont last, said David Horgan, chief executive of Petrel Resources, which is helping the Iraqi oil ministry develop fields in southern Iraq.

Iraqs neighbours Iran, Kuwait and Saudi Arabia, have been cautious about inviting foreign investment in hydrocarbon exploration, even when the capital and expertise is seen to be sorely needed.

Despite concerns about security and the dilapidated state of its oil and gas infrastructure, oil executives do not expect Iraq to stray far from its neighbours example.

Modest expectations, said one source at a Western oil major, meant there was a muted response at his company to the news of agreement on the oil law.

People arent jumping up and down about it, the source said. There will be some pretty tough negotiations.

Majors including Royal Dutch Shell and BP have been studying for three years how they might gain access Iraqs oilfields, which hold the third largest oil reserves in the world.

Both expect a national oil company to be formed to exploit the countrys reserves, and hope to work with this company.

BP is already helping the Iraqi oil ministry to analyse data from the Rumaila field.
Oil executives say Iraqi officials have indicated that foreign investors will be offered buyback contracts for the most promising fields and production sharing contracts for riskier prospects.

http://www.oilandgasnewsonline.com/News.asp?Article=21500

suggest all actual or prospective investors in PET read the above carefully at least once..... and then prob walk away

looks like we could have good news from jordan this sunday

cynic.. you were wrong on PRTY...I'm afraid wrong again on PET....never mind keep trying what are your views on my other 'p'..pxc... REMEMBER THE THREE P'S They will make you rich!!!!

Piss Pot & Poo.

Where there's muck, there's money.
2517

just been listening to a broadcast on Radio Five Live @ 15.00 today.
The researchers stated that Iraq has seriosuly underestimtaed its oil reserves and in fact there is at least double and maybe treble the oil under the ground than was first thought.
They then had an interview with Horgan who was very bullish about what the Iraq Oil Ministry had confirmed.
Could be good news for all PET holders ( if they can ever get the oil out of course)

PB
Heard the same broadcast myself and it was stated that their oil would be very similar in quantity to that of Saudi Arabia. BE LUCKY

all this excitement and you PETS are very quiet

Good news indeed, but drilling is 18 months away, have held these for 3 years or so now having paid 42p. I was greedy @130 ish and then saw them go below my purchase price. Still now on a reasonable profit but will be hanging on, as I believe there is huge potential, of course there is also huge risk. Good luck to all holders.
2517

WOOLGAR's post is quite a brave assertion by someone .... i will take it as read, though i have no knowledge of these things, that Iraq's geological structure is the same or similar as that in Saudi, but to say that the oil quality will be the same is stretching things more than a little ...... more importantly with regard to this stock, GEORGE observes quite rightly that drilling is still 18 months away, and thta ssumes no more political or other upheaval.

The fact that drilling is so far away is good news for recent buyers as they will be able to reduce their CGT bill by 20%!!

Now that is worth waiting for!!!

http://www.petrelresources.com/_investorRelations/Petrel_Presentation_April_2007.pdf