AIM-listed Petrel Resources said it is still waiting for the Iraqi government's decision on the various oil exploration and development project proposals it submitted since last year.
It submitted three tenders in 2004 and the latest one, the Kormor field in Kirkuk, was submitted last April.
The status of the three proposals to develop the Khurmala, Hamrin and Subba/Luhais fields remained "unclear", the group said.
"Each of our three submissions faced critical technical and commercial evaluations by teams of experts from the Oil Ministry. We passed all evaluations," it added.
Despite the risks, Petrel will continue to remain focused on the oil-rich country.
"Our future lies in the Middle East. Iraq will play a central role in the growth of an oil supply desperately needed to fuel the world economic machine," Petrel said.
"The new Iraq is having a difficult birth but progress is being made. There is now a government and the rule of law is returning at least to certain parts of the country. A stable prosperous future for Iraq mandates the development of their vast oil resources," it stressed.
"Every passing year tightens the oil supply/demand balance making development of Iraqi oil more critical for world consumers. We remain confident that we will have a role to play in this development," it said.
Petrel said it has enough funds to support the business, having just raised £1 million from a share offer in March.
In 2004, the group saw losses widen to £350,295 from £244,065 last time.