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

I don't know if this is important or not, but from the AGM statement today for PRE.......A number of new exploration projects are under evaluation. One, onshore Texas, another in the Middle East.....

This just released, looks like they will be "In light of these discussions, companies will submit new offers concerning the development of the two fields and we are expected to sign contracts next month," al-Shammaa told Dow Jones Newswires."

Does this mean they will be submitting new offers as the contracts have indeed been changed from Cash to Risk sharing agreements? What do you guys think?

BAGHDAD (Dow Jones)--Iraq will sign oil contracts with international companies next month for the development of two oil fields, a senior Iraqi oil official said Thursday.

Head of the State Company for Oil Projects, Ahmed al-Shammaa, said two upstream contracts for the development of the Khormala Dome, in northern Iraq near Kirkuk, and Hemrin, northeast of Baghdad, were discussed in Amman this week with international energy firms.

"In light of these discussions, companies will submit new offers concerning the development of the two fields and we are expected to sign contracts next month," al-Shammaa told Dow Jones Newswires.

Al-Shammaa, who headed Iraq's negotiating team in Jordan, declined to name the companies involved in the talks.

Irish independent Petrel Resources (PET.L) is known to be one of the companies bidding for the contracts.

Last week, Iraq's Oil Minister Thamer al-Ghadhban said the two contracts would be ready to sign soon.

He said a third upstream contract for Subba & Luhais in southern Iraq has been delayed as the technical and economic aspects of the deals weren't yet ready.

Production from all these fields is expected to reach 300,000-350,000 barrels a day within two years from the start of development.

Oil ministry officials have estimated investment needed in the fields will amount to around $500 million to $600 million.

Last year, Ghadhban said the ministry would start to develop these fields this year.
-By Hassan Hafidh; Dow Jones Newswires; +964 7901 912 214; hafidh8@hotmail.com

(END) Dow Jones Newswires

apparently this is just out and was posted on advfn

BAGHDAD (Dow Jones)--Iraq will sign oil contracts with international companies next month for the development of two oil fields, a senior Iraqi oil official said Thursday.

Head of the State Company for Oil Projects, Ahmed al-Shammaa, said two upstream contracts for the development of the Khormala Dome, in northern Iraq near Kirkuk, and Hemrin, northeast of Baghdad, were discussed in Amman this week with international energy firms.

"In light of these discussions, companies will submit new offers concerning the development of the two fields and we are expected to sign contracts next month," al-Shammaa told Dow Jones Newswires.

Al-Shammaa, who headed Iraq's negotiating team in Jordan, declined to name the companies involved in the talks.

Irish independent Petrel Resources (PET.L) is known to be one of the companies bidding for the contracts.

Last week, Iraq's Oil Minister Thamer al-Ghadhban said the two contracts would be ready to sign soon.

He said a third upstream contract for Subba & Luhais in southern Iraq has been delayed as the technical and economic aspects of the deals weren't yet ready.

Production from all these fields is expected to reach 300,000-350,000 barrels a day within two years from the start of development.

Oil ministry officials have estimated investment needed in the fields will amount to around $500 million to $600 million.

Last year, Ghadhban said the ministry would start to develop these fields this year.
-By Hassan Hafidh; Dow Jones Newswires; +964 7901 912 214; hafidh8@hotmail.com

(END) Dow Jones Newswires

Will we get an RNS regarding this, as it knocks on the head any contract announcement sooner than next month, probably later on if the offers are to be resubmitted? Oh this is dragging on!

Pretty much all sells since that news...

I do not think this is bad news. Just a small point "next month" starts in 3 days!If we did get an RNS which said how few companies were involved or gave pointers to PET being in pole position it would give the share price a shot in the arm(IMO)

No it's not bad news, but I think if they have to re submit and those have to be checked and they need to talk again, it will be later rather than sooner.

Which is a pity cos my job finishes today and I have no job to go to and no money and a house to run!!!

Ive just topped up some more! any sign of weakness or impatience is a sign for me to add to this stock! long live those with faint hearts, every time they sell i top up. When they are announced, ill have a nice bottle of Krug on them!

Tokyo: IMO the story has not changed. We do know that PET is one of the companies involved in the bidding and the only questions centre on why they have been asked to re-submit the bid/s...suggestion is because it is going to be risk sharing (Good news)... and of course when will the deal be signed, and announced? Well I did read on this BB that we were looking at a November announcement, and that still seems to be in the timeframe. So we will all have to be a little patient as these things take time. If some people (traders looking for a very quick profit) decide to sell on this news...good news again as we can all buy some more at a lower price!! Live the dream! John

If we have any money left...

107606 - hang in there buddy, if this really is a risk sharing agreement, then your shares are gonna be worth a lot more in November, when they sign the contract...well that is still up in the air, in light of this article, and I know a few people have said they have e-mailed this to PET, they will probably now have to comment on it, and if the words "possible risk sharing deal" are mentioned, I would think it will be going back to 150 very soon before any confirmed contract news. Look back through old PET news and you'll see DH said that if given the oppurtunity they would elict for Risk sharing agreements, the Japanese firm are after crude, it all seems to come together. We could be getting some sort of news very soon


All IMHO

Tokyo

Ill eat rocks and soil till then...

evry sympathy 107606..You should do whats right for your position.If you have a lot invested it could be your salvation or your downfall. Been where you are , got the tee shirt. Good Luck

I havent got a huge investment, just enough to make a tidy return when the time comes, but not too much that I will die in abject poverty if the unthinkable happens! Just need another job...

willfagg were you the one who knows Diss?

another post from the other side, just posted but it sort of mirrors what I said earlier(but in more detail), hope this helps 107606.

1: Head of the State Company for Oil Projects, Ahmed al-Shammaa, said two upstream contracts for the development of the Khormala Dome, in northern Iraq near Kirkuk, and Hemrin, northeast of Baghdad, were discussed in Amman this week with international energy firms.

= More than 1 firm. (if quote is correct).

2: "In light of these discussions, companies will submit new offers concerning the development of the two fields and we are expected to sign contracts next month,"

= Why submit new offers? SEEMS NEW TERMS AGREED..IF HAPPY SIGN REVISED TERMS THAT HAVE COME FROM DISCUSSION!
= Risk sharing available so cut down your capital costs you are charging us.
= New terms agreed in principle ie re risk sharing. Go back to your lawyers, backers and company heads and agree if acceptable.

Iraq hasn't the time to mess about because they need new oil on stream and they need the majors in. Likewise you don't have a look at the tenders and say hey you are too expensive go away and give us a new price AT THIS LATE STAGE.

Horgan went to Iraq determined to seek Risk sharing agreements as the better option. He had a Japanese investment house with $250m backing in exchange for crude. Are the Iraqis going to turn a way crucial outside investment when last week Allawi said the best way forward was for risk sharing agreements. The Japs and others have probably said look more big investment would follow!

The majors aren't going to come in for crumbs or a pittance and Iraq will need to show that, in what they hand Pet or the other company (if there is one). It's likely more than one company because with the insurgency risk Iraq won't put all it's eggs in one basket.

The above is why no RNS from Pet and I think they are more than happy at this stage.

Cheers Tokyo, you're a good man (I think...)!

Cheers 107606 - I try to be, but we are all gonna need balls of steel to hold on to this, as the MM's are now gonna try every trick in the book to get your shares, if a risk sharing agreement is truly on the table, then PET are going to be targeted by the big boys later.

IMHO

Tokyo

Tokyo

You comment above that the implication of discussion with 'international energy companies' implied more than one firm - but it could be read as a consortium of firms, rather than competitive bids. If there were still competitive bids it is difficult to see how the whole matter could be resolved within a month. To me, one month is only time to finalise contracts with a preferred bidder. Would not Petrel be accompanied by risk-sharing partners last week?

Eric

Hey Eric - Petrel reported a while ago that they were in a joint venture on another project with a canadian oil company (can't remember the name, perhaps dexter can remember it), they have also stated " we concluded an agreement with the Jordanian NRA to use their core samples for various modern techniques including fission-track analysis. The results will be shared with both Jordanian and Iraqi authorities."

perhaps the three together? Until they issue an RNS there is very little proof around, but we can of course speculate.

Tokyo