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Petrel To Raise GBP250,000 To Fund Next Phase Of Iraqi Oil Development

Tue, 26th May 2020 13:21

(Alliance News) - Petrel Resources PLC on Tuesday said it will raise GBP250,000 through the issue of 7.7 million shares at 3.25 pence each.

Shares in the oil & gas exploration company were trading 0.1% lower at 3.74 pence each on Tuesday afternoon in London.

Petrel said that following the lifting of Covid-19 restrictions and the appointment of responsible officials by the new Iraqi government, it will enter into re-qualification discussions with decision-makers at the Ministry of Oil with talks expected to cover its past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert.

"Prevailing circumstances obliged Petrel temporarily to dis-engage from on-the-ground operations in 2010. We saw too many challenges - both governance, political and financial - to justify risking shareholders' funds given the then-limited upside available," said Managing Director David Horgan

"Recent events are transforming this situation. A three-way rivalry among Saudi Arabia, Russia and American producers - aggravated by an unprecedented demand-hit caused by Covid-19 - crashed the oil price. This cripples high cost operations offshore, and unconventional reservoirs. As a low-cost producer, Iraq is now well positioned to exploit this historic opportunity. I believe that Petrel has the experience, contacts and board commitment to help drive forward the next phase of Iraqi oil development," Horgan added.

Following admission of the placing shares, Petrel's issued share capital will comprise 157.0 million shares.

By Ife Taiwo; ifetaiwo@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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