Petrel Jumps on Iraq Acquisition

By John Lee.

Shares in Irish-based explorer Petrel Resources were up as much as 20 percent in early trading on Wednesday following the announcement that the company has agreed to acquire a 20 percent shareholding in Amira Hydrocarbons Wasit B.V. (“Amira”), which is the holder of a 25 per cent carried interest in certain oil and gas exploration and production licences in the Wasit Province of Iraq. The shares later fell back to almost to Tuesday’s closing price.

Highlights

  • Strengthens Petrel’s position in Iraq, where it has had a presence since 1999.
  • Strategic partnership with Amira Industries N.V. (“Amira Industries”), Amira parent company, allows Petrel to benefit from Amira Industries’ reputation and local capability in Iraq.
  • Equates to a 5 per cent carried interest through to production in exploration and production licences operated by Oryx Petroleum in the Wasit Province of central Iraq.
  • Petrel given a right of first refusal to participate in future exploration and production licences in the Iraqi provinces of Muthanna, Karbala, Babil and Najaf, once secured by Amira Industries.
  • Arman Kayablian, COO of Amira Industries N.V., will join the board of Petrel as a non-executive director.

David Horgan (pictured), Managing Director of Petrel, commented:

We are delighted to announce the expansion and diversification of our exploration portfolio with this acquisition. Petrel has a long-standing interest in Iraq. Following the recent farm out of our Irish acreage, the acquisition refocuses our efforts on one of the world’s premier hydrocarbon basins.

“The addition of Amira’s assets to our portfolio and the joint venture with the Kayablian family provides our shareholders with greater exposure to the world class hydrocarbon potential in Iraq.

“We are delighted to welcome Arman to the board and we look forward to working with him.

Lawrence Kayablian, Chairman of Amira Industries, commented:

Amira Industries has been at the forefront of licence acquisitions in the Iraqi provinces and was the first oil company to sign oil and gas exploration and production contracts with the governments of Salah ad Din and Wasit. The group has developed local relationships which facilitate timely provincial government approval of its projects.

“The exposure to Petrel’s assets in Ireland and Ghana and the addition of a strong operating team provides Amira Industries with a broader range of exploration opportunities in Iraq and internationally and we look forward to working with Petrel to expand our activities across the region.

(Sources: Petrel, Yahoo!)

3 Responses to Petrel Jumps on Iraq Acquisition

  1. Ahmed Mousa Jiyad August 15, 2013 at 12:33 pm #

    Not again Petrel!!
    What Petrel claims cannot be verified by credible legally valid reasoning or documents and they also contravene the basic legal frameworks governing upstream petroleum in Iraq.
    Apart from surface installation contract for Subba and Luhais oilfields in 2005, Petrel has hardly any other major contract. Its claim of 2002 agreement with the Oil Ministry in Baghdad on an exploration contract over 10,000 sq km in the Western Desert was not supported by credible legal documents. Moreover, the company was not even qualified by the ministry for any bid round when the company applied for such qualification between 2009 and 2011.

    Not only Petrel was not qualified but all companies mentioned in this announcement by Petrel were not qualified by the ministry for bid rounds upstream contracts as well including: Amira Hydrocarbons Wasit B.V; Amira Industries N.V; Amira Petroleum N.V.; Oryx Petroleum (“Oryx”), among others.

    Also all contracts mentioned in this Petrel announcement are legally not valid and, according to prevailing frameworks, considered null and void.

    When contracts are considered invalid they are therefore unenforceable. So how “Oryx plans to commence a seismic data acquisition program in 2013 and to drill an exploration well in the first half of 2014.” Or “Petrel’s exploration programme scheduled for the next 18 months, with the potential to drill one or two additional wells.”

    The ministry of oil had made it abundantly clear that any upstream petroleum contract is not valid in Iraq without the approval of the federal government. Moreover, service contracts for bid round four (for exploration blocks) and for the forthcoming bid round Nasiriya oilfield & refinery has a provision giving the ministry the power to “Terminate” the contract when the IOCs signed any other contract without the consent of the federal government.

    By the way, what is said about the companies and contracts referred to in Petrel communique is applicable to other companies such as the Canadian Sonoro; the Swedish firm U-Kraft, later renamed Tigris Oil; the UK independent San Leon.

    Poor shareholders!!!

    Ahmed Mousa Jiyad,
    Iraq/Development Consultancy and Research,
    Norway.

    Email: [email protected]

    15 August 2013

  2. Seth Bradford March 12, 2014 at 12:58 am #

    Amira are joker-brokers and frausters. The real oil ministry in Baghdad would never even acknowledge their existence because they’re nothing more than a paper company. The Oil Ministry in Iraq isn’t stupid. That Petrel would fall for this scam is amazing.

    Can someone identify just one business transaction that Amira Industries has ever done anywhere in the world? Nope.