Petrel Resources PLC
22 July 2005


The following statement was made by the Managing Director at the AGM,
Dublin, 12 Noon July 22nd 2005


Petrel is in discussions to extend its area of exploration interest in Iraq. Any
new acreage will be under the transitional Technical Cooperation Agreement
developed by the Iraqi Ministry of Oil, while the new elected government
determines future energy policy.

Petrel's study of the East Safawi block in Jordan close to the Iraqi border has
been positive. We are moving to the next stage by deepening our analysis and
negotiating a Production Sharing Agreement with the Jordanian authorities. Once
a satisfactory agreement is in place a work programme will commence. This
programme is likely to include seismic and one or more wells once we are
satisfied with drilling locations.

Our partners, including many of the world's premier suppliers, continue to give
excellent support. This week Petrel engineers submitted detailed technical
clarifications on the Kormor Gas Project tender in northern Iraq to the Ministry
of Oil.

We understand that Iraqi Ministry of Oil officials are satisfied with technical
and commercial clarifications to our Subba & Luhais oil field development tender
of late 2004. Last week we signed a Memorandum of Understanding with GE on the
Subba & Luhais project. Both the Kormor and Subba & Luhais projects are in
relatively stable areas where it is still possible to work. It is not practical
to work in the central and western region presently.

Petrel has received, despite requests, no official confirmation of the awards of
Hamrin and Khurmala projects. Based on industry sources and media reports, we
assume these are gone.

Subba & Luhais remains our priority oil project, as it has been since 1999. We
continue to conduct regional work on Western Desert Block 6 and neighbouring
areas. Despite security challenges, we remain committed to expand our Iraqi
activities.

All resolutions were passed at the meeting.


Contact

David Horgan + 353 87 292 3500
John Teeling + 353 1 833 2833
Jim Finn + 353 1 833 2833


Bell Pottinger Corporate & Financial

Nick Lambert + 44 (0)7811 358764


Rowan Dartington

Barrie Newton + 44 (0)117 933 0011


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

Wilbs - good to see you are still here mate, I'm still holding on for a bit longer at least as I'm expecting to hear about the PSA in Jordan soon, the more contracts and PSA's they can get under their belt the more attractive they are for a take over bid, or at least alot more attractive for some of the investment houses to start buying up large chucks of stock, we saw a couple of big buys yesterday (or were they just short accounts being closed!!LOL)

sunray41 - you only have yourself to thank for staying in so long, well done pal good call

Mentions in, Unison IE Ireland, Irish Examiner, Guardian Unlimited, The Telegraph, This is Money, Sharecast and RTE News.
No doubt there will be weekend press follow ups. The institutions will also have another in depth look at Petrel.

Cheers Toyko. I sold out before but got back in a while back but not as much as I had before.
Heres a few snippets from the press.



08/09/05

Petrel wins Iraqi oil contract
By Claire Shoesmith
IRISH oil and gas exploration company Petrel Resources has won its first contract to drill for oil in Iraq.

The Dublin-based company said yesterday the Iraqi Ministry for Oil had awarded it a $197 million (158m) three-year contract to extract oil and gas from the Subba and Luhais oil fields near the Saudi Arabia and Kuwaiti boarders. Until now, Petrel has only been testing the fields and has not extracted any oil for export.

Managing director David Horgan said: This is a great moment for us. It is what we have been working towards for the past six years.

Shares soared after the announcement, tripling in value to 100.5 pence each.

Mr Horgan said that while the contract, which envisages daily production of 200,000 barrels of oil and 100 million cubic feet of gas, is to drill for oil proved to exist at shallow levels, the company hopes to extend the contract to include drilling at depth in the future.



The shallow levels alone are estimated to have at least one billion barrels of reserves and possibly three billion, he said. Work will begin almost immediately. The oil and gas will be transported to Basra and exported to the Far East.

He said the contract was a pleasing achievement because many in the industry expected it to go to one of the large multinational.

Petrel moved into Iraq during the fall of Saddam Hussein and has built up a valuable relationship with the Iraqi oil ministry.

Saudi Arabia is the worlds number one oil producer, extracting 9 million barrels a day, about 10% of world production. Mr Horgan estimates that Iraq, which currently produces about 1.4 million barrels a day, could match that.

The country has the largest unexplored reserves in the world, he said. Russia is the number two producer, but its supplies are at their peak and are expected to diminish going forward.

http://www.examiner.ie/pport/web/business/Full_Story/did-sgEmh8eigFCnYsgadLjt5C321I.asp

Among small caps, Petrel Resources stood out as its shares shot up 62p, or 170%, to 98.5p after it revealed it had won a contract to develop the Suba-Luhais oilfield in Southern Iraq.

http://www.guardian.co.uk/business/story/0,3604,1564955,00.html

Aim-listed Petrel Resources surged 62 to 100p after the oil exploration group was awarded a $197m oil development contract by Iraq's ministry of oil.

http://www.money.telegraph.co.uk/money/main.jhtml?xml=/money/2005/09/08/cxmktrep08.xml&menuId=242&sSheet=/money/2005/09/08/ixfrontmarkets.html
wilbs

Thanks Wilbs - should add a few pence on the opening bell, and then up and onwards!!

App its on two pages of the financial times page 24 and back page.

From over the road.
Whole huge articel in Mail, they reckon further contracts, say Pet has two year lead over others, will PET get snapped up. Buy the Mail quick brillliant articel

From Daily Mail online

Investors rewarded for faith in Petrel

Geoff Foster on Yesterday's Trading, Daily Mail
8 September 2005
YOU have to have nerves of steel to be a shareholder in Petrel Resources. The speculative oil exploration company ruined many family Christmas celebrations last year by crashing to 27p (from 97p) on an unconfirmed agency report that it had lost out on the first post-Iraqi war oil development contracts to Turkish and Canadian firms.

Petrel failed to clarify the situation, and so hundreds of private investors nervously sold and lost a packet. Those with deeper pockets, or gung-ho patience, held on amid hopes that the worm would turn. Yesterday it did.


Petrel gushed to 103p before closing 62p higher at 98p on the long-awaited announcement that the Iraqi ministry of oil has awarded it the 107m Subba and Luhais oilfield development service contract.

The contract envisages daily production of 200,000 barrels of oil and 100m cubic feet of gas.

All of the major oil companies would love to be in Iraq, but it will take them at least two years to get involved.

Petrel is the only European company with a foot in the door. Its relationship with the Iraq oil industry should prosper, and other contracts should follow.

Iraq is the least-explored of the oilrich countries. It has the world's second largest oil reserves, and new exploration will probably raise it to 200bn -300bn barrels of high-grade crude, which is extraordinarily cheap to produce.

There should be a gold rush of profits for oil in the post-Saddam era and Petrel has a head start.

wilbs

happy to be another holder.

watcher

pet applied for several contracts, i suspect there is more to come

Why is the price so low, it should be 120p today.

Stop losses being triggered and small PI's selling out with a small profit? I think the MM want this stock and at a cheap price cos they know whats coming if PET get something else & then poss the instutions will want in.
Well thats my opinion.

petrol is in heavy demand winning a contract in iraq means the share price will go over the roof maybe 10.00 pounds in a short time

I cant see it hitting that azad. It would be nice though.

Azad, does your last post mean that the renewed ramping of PET has already officially started?
LOL

azad..... 10.00 pounds!!!! errr... wake up.

azad - Even as a keen PET supporter, I can't see 10 pounds. In the short term after the Jordanian PSA we may see 2 pounds+.

10 pounds is years away, after they have Profit Sharing Agreements in place with the Iraqis and are pumping out alot of oil. If you are still around for that, then power to you man!!!

Agree Toyko. This time last year the thread was buzzing and a sp of 500p was flying. Realisticly I see 200p. As DH is in Jordan at the moment, he may have some more good news next week. Well, lest hope so.

Me too Wilbs, as I'm all for locking in profit, but until DH comes back from Jordan with what we all know shall be a PSA as both sides had previously expressed such an interest, it would be crazy to sell. A few more days and a lot more cash is my view

Did you sell any on the drastic fall? I remember you were the topup king at the time!! Its taken time but I can't see any downside.
This is from the charimans statement.
'We continue to be encouraged by the Oil Ministry to submit tenders for new projects. In April 2005, we submitted a multi volume tender to develop the Kormor field in Kirkuk'.
Has this tender been awarded yet?
Im sure this is the first of many awards of contracts that PET will tender for and win.

Hey Wilbs, guess it is just us on here at the moment, Kormor has not been awarded yet.

Managed to get out last year before the big fall, and then bought back in, and have been topping up all the way until last week when I got my last lot at 29pence
I haven't sold any today, as I realistically see an SP of 150-200 as soon as the Jordanian PSA is announced.

with two big deals under their belt, PET will look even more attractive as a take over bid or for a long term investment by one of the larger financial houses. either way as PI's we win!!!