Petrel's focus remains firmly on Iraq
Thursday, 22 June 2006Irish oil and gas explorer Petrel Resources said that the company's focus remains firmly on Iraq.
Releasing preliminary results today, Petrel said that in 2005 it was appointed project manager and developer of the 200,000-barrel a day Subba and Luhais field development.
Petrel said the field, located in the southern part of the country, is on schedule to be on stream in 2009.
Petrel said this contract, worth $197m, is the biggest deal awarded by the Iraqi oil ministry since 2003.
In the year to December 2005, Petrel saw its net after tax for the year widen to €481,535 from €350,295 in 2005. The company had a loss per share of 77 cent compared to 60 cent in 2005.
Petrel said it is also exploring the Merjan field, located near the city of Hillah, which is believed to be holding 750 million barrels of light crude.
The AIM-listed group is continuing work on the 10,000-square-kilometre Block 6 in the western desert of Iraq.
Petrel CEO, John Teeling, said he expects in the coming months a new hydrocarbon law to be enacted in Iraq which will lead to the ratification of Petrel's concessionary rights over Block 6.
Petrel said it will use the advance payment of $20m for work done on Subba and Luhais to fund the project.
