(Alliance News) - Petrel Resources PLC on Wednesday said it has appointed the first of two new non-executive directors following a strategic placing amongst a new investor group.
Shares in Petrel were up 24% at 8.80 pence in London in afternoon trading.
Michel Fayad joins the oil and gas explorer, which has projects in Iraq, Ghana, and Ireland, with immediate effect following the placing. The placing of 29.99% of Petrel's enlarged share capital involved "a new investor group of leading Middle Eastern oil & gas investors".
Petrel plans to appoint another non-executive director, Roger Tamraz, when it commences its first major Middle East & North Africa oil and gas transaction.
Fayad and Tamraz each hold a 10% stake in Petrel.
Following Fayad's appointment, Arman Kayablian has agreed to step down from the Petrel board - again with immediate effect.
Petrel Managing Director David Horgan said: "Petrel's modest size has long constrained our growth in a Middle East & North Africa (MENA) region bursting with opportunity. Too few premier funding institutions supported projects in conflict zones. We need access to bigger projects and deeper capital sources.
"These director appointments may transform Petrel's fortunes. Michel Fayad brings a strong 'Rolodex' a flow of high potential projects, as well as significant financial, including hydrocarbon, experience in the MENA region particularly.
"Petrel has 20 years of operating experience in Iraq and neighbouring countries. But past agility has not always been enough. The availability of substantial new backers can now boost Petrel's standing, and therefore the scope of projects that we can tackle. The MENA region has never offered more opportunity."
On Monday, Petrel posted a widened interim loss of GBP115,000 for the six months ended June 30, versus GBP104,000 the year before as a result of administrative expenses.
By Anna Farley; annafarley@alliancenews.com
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Petrel Resources (PET)