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

Hey Sandrew64 - I used to do alot of surfing in Newquay, if you know that area I'm trying to find the name of a big white 5 star hotel on the cliff tops, it is next to Headland Hotel, if you know the name of the hotel please post it as I'm hoping to take the wife and a few friends there for new years...

thanks Tokyo

Dropping like a stone.

Is the euphoria over????

I do not hold, just interested!

Maybe not..........large drop but rising again.

this stock is gonna have intra days drops and rises, it really all depends on whether you believe they will get the contract or not, infact even when it was @ 60 pence the same thing was true

Tokyo

Tokyo - don't know the name of that hotel off the top of my head but will try to find out for you.

thanks sandrew64

tokyo i think the hotel you are looking for is called the Atlantic hope this helps
patsy

Thanx for the advice Tokyo, will hold on til the end!!!

lok at their web site www.atlantichotelnewquay.co.uk

pstsym - yes that is it, thanks alot!!!

this just released, should help the SP today or tomorrow whenever people who subscribe get to read it


Buy Petrel Resources at 121.5p
argues Stewart Dalby of www.oilbarrel.com

In July on Oilbarrel we wrote that there was some unpleasant news coming out of Iraq. The news since then has not got any better. We thought then and now that although there are clearly security problems, and it will take longer to bring the oilfields up to par than was originally envisaged, the oil industry will be revived one way and another. We believed companies like London and Dublin quoted Petrel Resources which have been patiently involved in Iraq since 1998 and could be in the pole position to benefit from any oil deals

We wrote this when the shares were selling at 45p. Since then they have motored up to 121.5p on the back of a belief that Petrel might just pull something off. Well, now it looks as if it might have done just that. The company has recently stated that it has been summoned to the oil ministry in Baghdad for "an urgent and direct discussion to finalise all technical and commercial matters". This is the call Petrel has been waiting for.






The discussions relate to the three tenders submitted by Petrel between April and June of this year for three major oil development projects: The Khurmala Dome, Hamrin and Subba/Luhais oil fields. The three projects are likely to be among the first to be sanctioned for the for development by the Iraqi government because in the words of Petrel chairman, John Teeling: "They are proven, ready to go and all the preliminary work has been done."

The Subba/Luhais project in southern Iraq envisages daily production of 200,000 barrels of oil . It used to produce around 180,000 b/d before going into decline. Khurmala, in the Kirkuk area of northern Iraq and Hamrin in central Iraq, are each targeted to produce in excess of 100,000 barrels of oil per day. The Three oil fields may hold in excess of 2 billion barrels of oil and could be on stream within 24 months.

But this could be just the start . Iraq is known to have 115 billion barrels of oil reserves, second only to Saudi Arabia which is usually credited with 265 billion barrels. But much of Iraq remains under-explored. The whole of the Western Desert is in theory up for grabs. David Horgan, the Managing Director at Petrel says: "There is tremendous opportunity at the Jurassic, for example , which is productive in Saudi Arabia but which has never been produced in Iraq.. That is not because it is not there. There are some big structures on the seismic."

Of course questions of security have still to be worked out. A company of Petrel's size and resources might not realistically expect to get all of all three concessions to itself. There will be farm outs presumably. But 2 billion barrels are a lot of reserves, look at what the discovery of less than this amount by Cairn in India did for that company's share price. Any involvement at all will be company making for Petrel - at 121.5p it is capitalised at just 91 million pounds. The company looks to be ahead of the field as the major s are still standing back from involvement in Iraq. Petrel's shares have come back this morning on profit taking. All they still worth a punt? Definitely.

Key Data

EPIC: PET
Market: AIM & Dublin
NMS: 5,000
Spread: 120-123p
Market Cap: 91 million pounds

Tokyo

Great post from bahouse good to see it from an other angle.
Took profit yesterday @153 will get back in asap. Any views os SIA

MS

Nice info once again.Glad you found the hotel. If you get near Porthleven I'll buy you a drink.

I guess what that drink is would depend on whether we get good news this week!!

Sad but true.

drinks are more than welcome!!!!

Will be back in the UK for about 3 weeks in december, just hope the liver can withstand the punishment, sent a few of my mates my research and they got in @ 52pence, there is already quite a few drinks waiting for me in London & Bournemouth!!!

there is a whole sea of blue buys now ticking up, are people getting to read the oil barrel article - I hope so!!

enjoy the ride guys

Tokyo

I hope so too, would be nice to see a small positive if nothing else! Do you reckon that there will be an announcement this week, as there was rumoured to be?

There must be some people reading it cos its ticking up quite quickly now!

Looks like people are now even raiding piggybanks for this one,judging by the sizes of the trades.

Mines smashed to bits. And i shook out the sofa.

Just read through the 2004 slides from PET and now feel even more comfortable about my holding.
Page 3 says "now in FINAL contractual, commerical & technical discussions" - my interpretation = 1&2 are in the bag, just working out the money part of the deal.

page 3 also says - Subba & Luhais technical discussions are nearing completion - my interpretation = they are even thinking about giving us all 3!!!!!

page 17 has petrel implying a potential value per diluted share of $6 or 330 pence, if they can change 1 tender to risk-sharing, does that mean 3 would be 990pence, will just have to wait to see.

I'd advise you all to download these slides well worth the read.

Tokyo