Petrel reduces losses in first half

Oil exploration company Petrel Resources reduced its losses in the first six months of the year, despite ongoing difficulties in its global activities.

The company said it was financially secure for the coming years, as pre-tax losses fell to €228,000, compared to €247,000 in the same period last year.

With operations in Ireland, Ghana and Iraq, Petrel had a cash balance of almost €1.7m to the end of June.

The company is particularly optimistic in terms of its Porcupine BasinOffshore operations, along with its partner Woodside Energy, describing the collaboration as a very good partnership in an area whose time has come.

The development of new technology, high oil prices and the attraction of big structures suggests that the coming years will see a flowering of exploration activity in the region where its first phase of activity is under way, the company said in a statement.

The situation in Iraq is less clear, however, as unrest continues in the region.

“The political uncertainty and civil strife inthe Middle East makes it difficult to be optimistic about our activities in Iraq, but progress has been made... Our partners, the Amira Group and Oryx are awaiting approvals from the governor of the Wasit Province to undertake a seismic [survey], followed by drilling,” the company added.

Following legal proceedings in the Ghanaian courts in relation to the Pan Andrean Resources 2A licence, the company is optimistic that confirmation of new co-ordinates, agreed after an award by the Ghanaian parliament of some ground covered by its licence to a rival company, will be reached by the October deadline.

“The licence is highly prospective given the proximity of the world- class Jubilee field and, after several years of endeavour, we look forward to progressing our interests following ratification.”

The company’s improved financial state resulted from reduced administrative expenses which fell €20,000 to €229,000 in the opening half of the year.