Petrel Resources has raised £250,000 (before expenses) through a placing by Novum Securities.
Use of Funds
The net proceeds of the Placing will provide the company with additional working capital, as Petrel's board continues to assess new projects in Iraq, and elsewhere.
The security situation in Iraq continues to improve, while an investment slow-down since 2014 has led to potential improvements on contract terms which should improve scope for development.
Petrel has recently submitted an application to assume an existing contract east of Baghdad
• 4th Bid round award in 2012, at a remuneration per barrel of $5.38.
• Block 8 covers 6,000 km2 in Wasit and north-eastern Diyala
Petrel has previously conducted a Technical Cooperation Agreement on the Merjan oil-field in west-central Iraq, in a 50% partnership.
Following the steadily improving security conditions in this part of Iraq, and better global oil and gas prices, Petrel has proposed to develop this discovery under applicable Iraq contracts.
Petrel may be invited to enter into pre-qualification discussions with the Ministry of Oil. Discussions may also cover Petrel's past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert.
David Horgan, Director, commented:
'The supply/demand balance for oil is shifting in Iraq's favour. New global oil & gas investment falls short of levels needed to support anticipated demand. The dramatic growth in North American fracked output between 2005 and 2014 is less of a concern for OPEC exporters. Sanctions on Russia, Iran and Venezuela had constrained the early development of their resources, while demand for oil products and LNG continues to grow - particularly in Asia.'
'As reported recently in connection with BP negotiations, the Iraqi Government plans to streamline contract awards and fiscal terms so as to deliver increased output for Iraq's economic development. We have the team, experience and skills to participate in the coming boom.'
Source: Petrel Resources
