Petrel shares soar as Iraqi oil field deal closer

SHARES in Petrel Resources soared as much as 25% yesterday after the company said it was on the verge of finalising an agreement to develop oil fields in Iraq.

Petrel executives have been called to an “urgent” meeting with officials from the Iraqi oil ministry to complete the “technical and commercial aspects” of the dealing, which will allow and commercial aspects of the dealing to develop to three fields in the western deserts of the country. Petrel submitted tenders last year for three fields - Khurmala Dome, Hamrin and Subba & Luhais - each capable of producing 120,000 barrels of oil per day.

News of the meeting sent shares in Petrel up by 18p to 87p yesterday valuing the company at £40 million. The shares have jumped by nearly 500% since May 2003 when regime of Saddam Hussein was toppled.