Petrel Resources Share News (PET)

Irish oil exploration group Petrel Resources took flight after saying detailed modelling of Quad 35, part of its 11/4 licensing option in the Irish Atlantic Margin, indicated a potential payload of one billion barrels. As an added bonus, the targets are accessible with one well. The Nostra Terra Oil and Gas Company enjoyed a less eye-catching gain than Petrel after it revealed the first horizontal well at the Chisholm Trail Prospect in Oklahoma has been completed and is undergoing production testing. The oil and gas producer has just a 0.47% working interest in the well. Additional wells at Chisholm Trail are in the process of being planned and permitted, and a leasing programme focused in the area is also ongoing. Once elections are received and made on the following wells, the company will make relevant announcements. The news was less good for Mercom Oil Sands, which fell to a a new low. The AIM-listed tiddler failed to agree terms with Nordic Petroleum under which Nordic would take a 50% interest in four oil sand leases at Chard in Albert, Canada Sands. No further extension has been granted for the completion of the preconditions of the farm-in agreement and as a consequence Nordic has declared Mercom to be in breach of contract. The board of Mercom is currently consulting m'learned friends and will make a further announcement to shareholders in due course.