Petrel Resources Regulatory News (PET)

22 Aug 2007 12:15

Petrel Resources PLC22 August 2007 Highlights of the Managing Director's Statement Petrel Resources AGM Dublin 22nd August, 2007 The expected passage of the Iraqi Hydrocarbon Law opens the door to fullparticipation by private companies in exploring for and developing Iraqi oil.Iraq is one of the last great under explored and under developed onshore oilprovinces. The exploration success rate is high. Iraq's oil bearing structuresare large with straightforward reservoirs and low geological and engineeringrisks. The deep horizons which provide most production in neighbouring SaudiArabia, Kuwait and Iran have to date been largely untouched in Iraq. In normal circumstances a state oil company would limit foreign involvement, butIraq's rare circumstances require attractive terms to entice foreign investmentand technology. Our competitive advantage is our relationships built up over 10years. We have the capacity and the ability to increase quickly recoveries fromexisting reservoirs and to add new barrels to Iraq's reserves. Petrel has been active in Iraq for the last decade. The successful managementof the large Subba & Luhais oil field development in Southern Iraq shows thatdedicated contractors can operate on the ground. To date, we have suffered nodirect incidents and have enjoyed the warm cooperation of local communities.The Iraqi authorities and especially the Ministry of Oil, continue to becommitted to and supportive of our efforts. Petrel continues to have favourable backing from suppliers. Our Iraqi andinternational staff have shown exceptional dedication and flexibility. Apartfrom on the ground activities, they have produced tenders for the development ofoil and gas fields which are considered the technical benchmark by the relevantbodies. Our Technical Cooperation Agreement analysis and technology transferwas also judged first rate. Our pioneering exploration work in the Westerndesert blended local expertise with state of the art technology. In Itochu, our Japanese partner, we have the long term support of one of theworld's largest downstream oil players. Our shareholders have shown long term commitment in the face of sanctions andwar. Though political uncertainty remains, Iraq now has a sovereign electedgovernment committed to developing its hydrocarbons. Legal title to risksharing agreements will soon be a reality. Petrel is demonstrating that it can operate in the oil rich South of Iraq. Wewill continue to aggressively deepen and broaden our activities in this region. All resolutions were passed at the meeting. Contacts: David Horgan, Managing Director + 353 87 292 3500John Teeling, Chairman + 353 1 8332833 College HillPaddy Blewer +44 (0)20 7457 2074Nick Elwes Blue Oar Securities PlcJohn Wakefield +44 (0) 117 933 0020Simon Moynagh www.petrelresources.com Notes to Editors: Petrel Resources is focused on the long-term objective of exploring for anddeveloping Iraqi oil & gas, in close cooperation with the Iraqi Ministry of Oil.Petrel is the international company most active in Iraq since 2003. Itoperates the largest Engineering Procurement and Supervision of Construction(EPC) contract at the Subba & Luhais oil fields near Basra. Petrel also operates the Merjan oil field Technical Cooperation Agreement inpartnership with Japanese conglomerate Itochu-Cieco. Petrel has been working on Block 6 since 2002. Block 6 is the choice 10,000 sqkm block in the Iraqi Western Desert, with large structures and high potentialfor Mesozoic oil and Paleozoic gas and condensate. Petrel was launched under current management in 1997 and listed on the AIM inAugust 2000. It has 1,800 shareholders, and is capitalised at approximately£65m. This information is provided by RNS The company news service from the London Stock Exchange