Petrel Resources Regulatory News (PET)

4 Mar 2005 07:30

Petrel Resources PLC04 March 2005 Petrel announces institutional placing Petrel Resources (AIM: PET), the oil exploration company focused on Iraq and theArabian Western Desert, is pleased to announce an institutional placing of2,440,000 Ordinary Shares at 43p each. Of these shares, 366,000 will be issuedand admitted to AIM on 6 May 2005 and a further 366,000 will be issued andadmitted to AIM on 7 July 2005. In addition, Petrel has issued 61,000 Ordinary Shares in settlement ofprofessional fees in respect of the placing. Accordingly, Petrel has applied for 1,769,000 Ordinary Shares to be admitted toAIM now and it is expected that admission of these shares, and the commencementof dealings, will take place on 7 March 2005. It is expected that the balanceof 732,000 shares will be admitted to AIM in two stages as noted above. The funds will be used for Petrel's ongoing oil field development andexploration activities in Iraq and Jordan. Petrel awaits a decision by the Iraqi authorities on two tenders for oil fieldservice contracts to develop, as a contractor, two separate oil field projectsin Iraq: • a green field site in central Iraq, which has the potential to be developed as a 100,000 barrel per day oil field • two neighbouring oil fields in southern Iraq. The brown field facilities have the potential be developed to produce 200,000 barrels daily. Further tenders will be submitted during 2005. Work is now underway on thefirst of these tenders. Petrel is also pushing ahead with its exploration in the Arabian Western Desert: • Work is concentrated on Block 6 in the relatively unexplored Paleozoic Basin of Western Iraq. Work is underway on mapping, seismic interpretation, satellite imaging and geological sampling. Four major prospects have been identified from seismic lines in Block 6. This combination of huge structures in an area of proven source rock and reservoir sands makes Block 6 the most promising of the desert blocks • Petrel has also signed a Memorandum of Understanding with the Jordanian government's Natural Resources Authority to re-process seismic and conduct other exploration work on the 8,750 km2 East Safawi Block close to the Iraq border. Petrel has the right to opt for a Production Sharing Agreement. Contacts: David Horgan + 353 87 292 3500 John Teeling + 353 1 8332833 Jim Finn + 353 1 8332833 Bell Pottinger Corporate & Financial Nick Lambert +44 (0) 7811 358 764 Rowan Dartingon Barrie Newton +44 (0) 1179 330011 This information is provided by RNS The company news service from the London Stock Exchange