Petrel Resources Regulatory News (PET)

22 Jul 2005 12:22

Petrel Resources PLC22 July 2005 The following statement was made by the Managing Director at the AGM, Dublin, 12 Noon July 22nd 2005 Petrel is in discussions to extend its area of exploration interest in Iraq. Anynew acreage will be under the transitional Technical Cooperation Agreementdeveloped by the Iraqi Ministry of Oil, while the new elected governmentdetermines future energy policy. Petrel's study of the East Safawi block in Jordan close to the Iraqi border hasbeen positive. We are moving to the next stage by deepening our analysis andnegotiating a Production Sharing Agreement with the Jordanian authorities. Oncea satisfactory agreement is in place a work programme will commence. Thisprogramme is likely to include seismic and one or more wells once we aresatisfied with drilling locations. Our partners, including many of the world's premier suppliers, continue to giveexcellent support. This week Petrel engineers submitted detailed technicalclarifications on the Kormor Gas Project tender in northern Iraq to the Ministryof Oil. We understand that Iraqi Ministry of Oil officials are satisfied with technicaland commercial clarifications to our Subba & Luhais oil field development tenderof late 2004. Last week we signed a Memorandum of Understanding with GE on theSubba & Luhais project. Both the Kormor and Subba & Luhais projects are inrelatively stable areas where it is still possible to work. It is not practicalto work in the central and western region presently. Petrel has received, despite requests, no official confirmation of the awards ofHamrin and Khurmala projects. Based on industry sources and media reports, weassume these are gone. Subba & Luhais remains our priority oil project, as it has been since 1999. Wecontinue to conduct regional work on Western Desert Block 6 and neighbouringareas. Despite security challenges, we remain committed to expand our Iraqiactivities. All resolutions were passed at the meeting. Contact David Horgan + 353 87 292 3500John Teeling + 353 1 833 2833Jim Finn + 353 1 833 2833 Bell Pottinger Corporate & Financial Nick Lambert + 44 (0)7811 358764 Rowan Dartington Barrie Newton + 44 (0)117 933 0011 This information is provided by RNS The company news service from the London Stock Exchange