Petrel Resources "Incurs no Costs" in Iraq

By John Lee.

In its Interim Statement for period ended 30 June 2015, Irish-based Petrel Resources issued the following update on its operations in Iraq:

"Our third theatre of activities is Iraq, where we have had a presence for 18 years. The original Petrel interest was in Block 6 in the Western Desert between Baghdad and the Jordanian border. That is, and is likely to remain, a no-go area.

"Two years ago we established a close relationship with a well-connected Iraqi family by acquiring a 20 per cent interest in Amira Hydrocarbons Wasit. Amira has a joint venture with a Canadian company, Oryx Petroleum, in the Wasit province.

"We bought, for cash and shares, an effective 5% free carry through exploration on any Oryx activities in Wasit. The acquisition refocused our efforts on one of the world's premier hydrocarbon basins and provides our shareholders with greater exposure to the world class hydrocarbon potential in Iraq.

"The Wasit Governorate is a Shia controlled province between Baghdad and the Iranian border, and is relatively stable. Like most of Iraq, it is very prospective for oil yet only lightly explored.

"Our belief was, and is, that a federal system would evolve in Iraq. This belief was based on events in Kurdistan. Should this happen, governors can sanction exploration in their own provinces. To date this has not happened.

"The shares in Petrel, given to Amira, will be extinguished if exploration does not happen by 2018. Nothing is happening at present. Petrel incurs no costs."

(Source: Petrel Resources)