Petrel shares rise 6% as it steps up oil exploration activities in Iraq

SHARES in Petrel Resources rose 6% yesterday after the oil exploration company said it would step up its activities in Iraq.

Petrel submitted the third of a series of tenders to develop Iraqi oilfields yesterday.

It had already applied for permission to carry out work on a 120,000 barrel per day facility in Kirkuk in the north of the country and on a 100,000 barrel per day project in the central Iraqi oilfield of Hamrin.

Yesterday’s application centred on a 120,000 barrel per day development at the joint Subba/Luhais field, which is also in central Iraq.

Petrel managing director David Horgan said that there were substantial oil opportunities in the country. He said Petrel hoped to exploit the gap left by the world’s major oil companies, who had so far decided against getting involved in Iraq.

“Though the general security situation is challenging, Petrel staff have encountered no hostility,” Mr Horgan said.

He said his staff had been “generously received” by Iraqis and local business contacts had given the company advice on how to minimise the hazards of working in the region.

Mr Horgan added that Petrel’s work in Iraq had not been interrupted as a result of any security concerns.

The company said that officials from the Iraqi oil ministry were continuing to work hard to deliver progress on each of the projects.

The ministry has had its budgets approved and has put in place funding to pay for initial work that is currently underway. Petrel is also involved in a geological sampling programme with the authorities in the neighbouring country of Jordan.

The company said this would give it access to key information on rocks in the area and provide details on the potential for finding further oilfields. Petrel’s share price has surged by 67% so far this year as investors expressed confidence in Petrel’s work programme in Iraq.

The share has displayed a resilient performance so far in shrugging off concerns over a deteriorating security environment. The company has a market capitalisation of approximately £20 million (€30m).