Petrel records €126,000 loss tor H1

Oil exploration company Petrel recorded an operating loss of €126,000 during the period for the six months ending June 30.

Petrel Resources is an Irish and London-listed exploration company established in the early 1980s.

The company's operations are focused in Iraq, where it has been seeking an agreement to develop three existing oil fields in southern Iraq. Before the fall of Saddam Hussein, Petrel had signed a working agreement to explore in Iraq's Western Desert.

Between April and June 2004, Petrel submitted plans to develop the Khurmala Dome, Hamrin and Subba & Luhais oil fields in Iraq. Each tender is to develop oil fields producing in excess of 120,000 barrels per day.

Since June, Petrel has been in detailed technical discussions with the Iraqi Ministry of Oil on all three tenders. This work clarified and fine-tuned engineering detail.

In recent days, the Iraqi Ministry of Oil invited Petrel for “an urgent and direct discussion to finalize all technical and commercial matters” in respect of the first two of these projects.

"We are urgently meeting to finalise outstanding technical, contractual and commercial issues," David Horgan, managing director of Petrel Resources said.

Petrel works only with the Iraqi Ministry of Oil and has no business links, directly or indirectly, with military contacts.

"We have spent the last seven years in pursuit of our goal of becoming an independent oil producer in Iraq. The next few months may see us take important strides towards this goal," said Mr Horgan.