LONDON (Alliance News) - Petrel Resources PLC said Monday its pretax loss narrowed in the first half of 2015 as it pushes forward with its developments offshore Ireland, and the company said it hopes to secure further acreage offshore Ireland from the recent licensing round held earlier in September.
The oil and gas company reported a EUR147,000 pretax loss in the first six months of 2015, narrowing from a EUR229,000 loss a year earlier after the company, which does not generate any revenue, cut its administrative expenses.
"In a world where listed junior oil companies have seen their share prices hammered, Petrel is stable with cash and ongoing activities. In two current projects, offshore Ireland and in Iraq we are fully carried by our partners so there is negligible cost to Petrel," said the company. "In our Ghanaian venture we await the outcome of a licence application so costs are low."
Its Irish acreage is the company's main focus, where it is working with Australian company Woodside Energy, who farmed into the two offshore Irish blocks: frontier exploration licences 3/14 and 4/14 in the Porcupine Basin.
Petrel holds a 15% interest in those licences and is carried by Woodside through the initial exploration programmes. Woodside is ready to undertake a 3D seismic acquisition programme which will better identify and outline potential hydrocarbon bearing structures. That programme is expected to be undertaken in 2016, and Petrel said the targets are "large".
Petrel has also applied for three packages of acreage in the Irish Atlantic Margin Licensing Round which closed in mid-September 2015.
"We anticipate early discussions with the authorities on our proposals and are confident that our record to date, both in developing new plays and attracting world-class partners, will strengthen our applications. We are hopeful of an award," said Petrel.
In Ghana, Petrel holds a 30% stake in Pan Andean Resources Ltd alongside Clontarf Energy PLC, and the companies are in talks with authorities about the border of the licence area following a long period of dispute.
"The immediate future for Petrel is tied to offshore Ireland. Our current partner is likely to be active in the Atlantic over the next two years. We are hopeful of obtaining additional acreage in the recent Irish Atlantic licensing round. There will be developments in Ghana in the coming months but, based on experience, it is very difficult to predict," said Chairman John Teeling.
Petrel shares were trading flat on Monday morning at 2.50 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Petrel Resources (PET)
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