By John Lee.
Petrel Resources Plc (Lon: PET) has announce that the company has arranged a placing with ETX Capital to raise £250,000 (before expenses) via the issue of 7,692,308 new ordinary shares (the "Placing Shares") at a placing price of 3.25p per Placing Share.
Subject to the appointment of responsible officials by the new Iraqi Government, and the lifting of Covid-19 restrictions, Petrel expects to enter into re-qualification discussions with the appropriate decision-makers at the Ministry of Oil. Discussions may cover Petrel's past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert.
Pending, such discussions, this investment will strengthen the company's Balance Sheet.
David Horgan, Director, commented:
"Petrel is fortunate to have maintained strong relationships with Ministry of Oil officials, even during the darkest hours of sanctions, invasion, conflict, and Covid-19. Our Iraqi Director, Riadh, is a son of the renowned "driller", Mahmoud Ahmed. In Iraq we found World-class geology.
"Prevailing circumstances obliged Petrel temporarily to dis-engage from on-the-ground operations in 2010. We saw too many challenges - both governance, political and financial - to justify risking Shareholders' funds given the then-limited upside available."
"Recent events are transforming this situation. A three-way rivalry among Saudi Arabia, Russia and American producers - aggravated by an unprecedented demand-hit caused by Covid-19 - crashed the oil price. This cripples high cost operations offshore, and unconventional reservoirs. As a low-cost producer, Iraq is now well positioned to exploit this historic opportunity. I believe that Petrel has the experience, contacts and board commitment to help drive forward the next phase of Iraqi oil development."
(Source: Petrel Resources)