Petrel shares rise after Iraq payment

IRISH oil and gas exploration company Petrel Resources’ shares rose 24% yesterday after it emerged it is to receive $7 million (€5.3m) from the Iraqi Oil Ministry in outstanding due payments on a five-year-old service contract.

The settlement relates to consultancy work Petrel carried out for the Iraqis on the Subba and Luhais oilfield development project in the south of the troubled country in 2005.

The share move boosted Petrel’s market capitalisation to £25.68m (€29.8m). The country’s oil ministry recruited Petrel – which has a long-standing presence in Iraq – on a service contract to aid local company, Makman in developing the project. However, the Dublin-headquartered and AIM-listed firm ceased work on the project 18 months ago after not being paid by the Iraqi government for its services.