Petrel upbeat on Iraqi prospects

Irish exploration company Petrel Resources which has oil interests in Iraq has re established contact with the Iraqi oil ministry…

Irish exploration company Petrel Resources which has oil interests in Iraq has re established contact with the Iraqi oil ministry since the end of the Iraq war, shareholders were told today.

Speaking at the company's AGM in Dublin today, Petrel's chairman Mr John Reeling, told shareholders that the ministry has expressed interest in the immediate refurbishment the company's four oil fields in Iraq.

Mr Telling said that once terms for a development contact are agreed Petrel will have engineers on the ground "within weeks".

Preliminary work has commenced on Block 6 in the western desert, Mr Teeling added. Under the international sanctions imposed on Iraq since the war in 1991, Petrel couldn't import materials needed to carry out seismic tests in the region, but now that the sanctions are lifted it hopes to begin these tests as soon as possible.

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Shares in Petrel which are quoted on London's Alternative Investment Market (AIM) have tripled in value since the start of the year in anticipation of a development deal in Iraq .

Commenting on the prospects for exploration now that Iraq is in American control Mr Teeling told shareholders "The future looks very good."