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

wilbs,
thanks for your kind words,only a novice myself,1yr only.tokyo and millidog are far more experienced than me.do you read millidogs postings on iii bb,they make very interesting reading.
dexter

down 4.50p today, I thought it was supposed to go up!!!!

rkausar,
4p or so at the price now is nothing to worry about,just people day trading or a bit of profit taking.it seems to have stabalised at this level until an announcement.(well i hope so!)
dexter

Tell me what you think of this info guys, I found it on the AOL money board!!!

Petrel Resources.

1). They are are about to appoint a city spinner to talk up the shares.
2). On the tender they have won already in the Western Desert they are about to drill 4 wells. They have told people that they are hoping for a 1 in 3 hit rate. However, there were 9 blocks available in the Western Desert & they chose 1. Why? They already have previous seismology reports (8yrs worth of Iraqi information pre the new Ministry of Oil) & they have "poured" over these to know which one is the most attractive.
3). They have been advised by analysts that the Western Desert tender is worth at least an additional 60p per share + an additional 30p per share for each drilling bore that produces oil & effectively seals their production rights. Potential Growth = 1.80p on top of current share price. However....
4) The most exciting bit of news!.....In the next 5 weeks they will find out if they have won one of three licences it has bid for to develop "known" fields in the north, south & central parts of Iraq (These were previously capped off post 1st Gulf War). In each field they can produce more than 100 million barrels per day. To put this in context, BP produce just 4 million barrels per day globally!
5) Th ultra exciting bit of news!.....Petrel are very excited by what is below these relatively shallow fields. Petrel are confident that there is a lot more oil to be found & they will be able to take a share of around 30% of any newly discovered oil.

Petrels shares are not going to stay where they are for very long & if youve got the stomach for it stay with it or buy...after all weve only got to wait 6 weeks for the answers!

And this also....

Some interesting background info for you all......

At $50 per barrel a range of alternative oil supplies become profitable, shale oil, marginal fields in the North Sea, mothballed projects in the Gulf Of Mexico, among other sources.

However......

None of these sources can compete with the economics of Middle East Oil that has lifting costs of just $1 per barrel.

There in lies the opportunity....especially when you consider also that....
.
One attack on the big 4 million barrel a day Saudi Arabian oil refinery can plunge the oil market into crisis & threaten the world economy.

Iraq can contribute upto an extra 6 million barrels per day....

This is why people are investing in this share...financial institutions & multinational oil companies are now requesting an audience with Petrel Resources.

Their tenders have involvment from a number of large companies.

The good news......Growth in this share has only just started & its not too late to make healthy gains.

rkausar,
good post,although i think that point 4 should have read,each field can produce more than 100 THOUSAND barrels per day and not 100million.7
dexter

rkausar:

Thank you for posting this information...very interesting. My only question is where did 'AOL Money' get this information from as I am not aware they have a team of financial journalists? Meanwhile it supports the screaming BUY Status whatever the outcome of the key news on the larger oil fields. Thanks again.

Like moneyam's investors room, AOL Money have a investors board, so people like you and me forward there opinions and information they have collected from other sources!!!!!

i think the article came from a telegraph or daily mail piece the other day.
dexter

We have support at just above 120 so thats a good thing at least. Hope it holds till news.

Hi dexter,Toyko,Millidog and all.

I do indeed read millidog's postings aswell as bahouse on iii. It inspires me every time I read a post from either, toyko or yourself. You may say that you are a novice but you are more experienced than myself and many more people who posts on this BB and the others.

Always look forward to reading all your posts. I only get the chance to read at nights as I work long hours. Sad I know but PET is the only thing that keeps me going through the day.

Good luck all.

wilbs

Cheers Wilbs, we aim to please!!! IMHO we have another 2-3 weeks wait before we all become alot richer!!!!!

Tokyo

From the FT today

Developing the risks over Iraqi contracts gamble
By Kevin Allison
Published: October 9 2004 03:00 | Last updated: October 9 2004 03:00

When Edwin "Colonel" Drake dug the first oil well in Pennsylvania in 1859, sceptics called it "Drake's folly". But when the oil started flowing, the Colonel had the last laugh, and the petroleum industry was born. Petrel Resources, the Irish oil company, is involved in another big gamble, this time in Iraq. The shares soared to a high of 133p this week compared with 5p at the outset of the war in March 2003 as it appeared closer to winning contracts to develop two big oil fields there. But is this leap justified? The company, which made pre-tax losses of 244,065 last year, has invested heavily in the country, cultivating relationships among tribal leaders and technocrats since 1997. Petrel has connections but these alone will not win contracts. If it succeeds, the pay-out could be enormous but so could the risks. One field, Hamrin, lies within the infamous Sunni Triangle. Control Risks Group, the risk consultancy, says attacks there are likely to continue. Petrel plans to use local militias to provide security and says a similar strategy has worked in the Philippines. But success in Iraq remains far from certain.Kevin Allison

"Petrel has connections but these alone will not win contracts."

They are background processes which will underpin the contract(s) once work gets underway.

good news just coming off CNN, cease fire agreed, insurgents have agreed to hand over their weapons in parts of Iraq(sadr was mentioned). Will keep watching for an up-date if this is true then I would expect monday's press to be full of it, could be a turning point in iraq.

Tokyo

http://www.iraqenergy.com/

check out the stories on iraq energy web page, to back up the CNN story above, good news for Monday's stock price, lets hope there is more positive news for pet & iraq in todays papers, please post any sunday newspaper stories on pet here

thanks
Tokyo

This from the ample thread, not my figures I'm afraid, but might be of use to those trying think of a reasonable SP after announcements

Estimated PET stock price

Just checked my own maths and can't see anything wrong in the cold light of dawn except that I didn't add the current value to the value of won contracts therefore, IMHO the share price projection is:

1 contract = 1.99 + 83p = 2.82
2 contracts = 3.98 + 83p = 4.81
3 contracts = 5.97 + 83p = 6.80

Even if you discount PETs estimate of the value of the contract wins by say 30%, that is still very healthy.

Thanks fr the info. Tokyo. Would'nt it be nice if the price reached to 2 pounds by the end of next week!!!

Recent article in the Telegraph..........


Petrel's only for strong stomachs

Petrel Resources has seen its shares soar in the past two weeks, from 44.5p on September 22 to 130p last night, ahead 12.5 on the day. Not bad for a company whose house broker has never issued any research and which (currently) has no City spinner to talk up the shares.

So what is going on? Petrel is a small Irish oil and gas company hoping to hit the big time in Iraq. Petrel's advantage is that it is Irish (and so neutral) and has been in Iraq since before Saddam Hussein was toppled. Petrel has already won the right to drill for oil in Iraq's western desert. The company is drilling four wells, hoping for a one in three hit rate.

In the next six weeks it will find out if it has won one of three licences to develop known fields in the north, south and central parts of Iraq (each with more than 100m barrels per day).

But the real excitement is what is below these three (relatively shallow) fields. Petrel is hoping there is a lot more black gold to be found and it will be able to take a share of around 30pc of any newly discovered oil.

Valuing a business like Petrel is difficult. The drilling rights in the western desert could be worth 60p a share, while each production licence could add another 30p per share. But there are a lot of "ifs" here, not least the political risk of investing in a country that does not yet have a permanent government.

Petrel's shares are a highly risky play. Just about the only certainty about its shares is that they are unlikely to stay where they are now for long. If you've got the stomach for it, buy. Otherwise avoid.


articles in the Times & Telegraph this weekend, insurgents handing over weapons, DH reportedly off to Iraq next weekend, should make for another interesting week for the Share price!!

Tokyo

Lets see if anything happens tomorrow...