Result of AGM

RNS Number : 9293P

Petrel Resources PLC

26 July 2010

 



July 26^th 2010

Petrel Resources PLC

Highlights of Chairman's Statement to Shareholders at the AGM held in

Dublin, Monday July 26^th

·     The resolution of the Subba and Luhais in Iraq impasse is a major step forward for Petrel.

·     Petrel continues to maintain an active presence in Baghdad and hopes to move forward once the political and legal situation clarifies.  There is currently no government and no hydrocarbon law.

·     Petrel has $7 million in cash or near cash, a 10 per cent profit interest in the Subba and Luhais contract, a significant database on oil discoveries and an interest in Block 6 in the western desert.

·     Given political and legal certainty we would hope to finalise Block 6 title then move immediately to exploration.

·     We intend to remain in Iraq which remains the best and cheapest source of oil.   Our Baghdad office gives us presence and access which we believe will pay off when realistic development terms are set out by a stable government.

·     Despite excellent but high risk hydrocarbon potential on our Jordanian licences we have been unable to attract a joint venture partner.  The licences are likely to be surrendered.

·     Though maintaining a presence in Iraq we need alternatives.  Africa has potential.  We have a 30 per cent interest in an onshore/offshore Ghanaian exploration block and are preparing entry into nearby countries.

Highlights of comments made by David Horgan, Managing Director:

·     We seek big potential projects - typically in places with good geology but challenging politics.  Our logic is that politicians change but rocks do not.  Iraq is the best place in the world for oil.

·     We deliver quality work but are exposed to bureaucracy and politics.  Sometimes states seek to impose conditions or unattractive limits on rates of return that are not viable.  We are not a charity.   There is always a solution.

·     No pioneer can promise quick success.  We do not spend shareholders' money on overhead.  We put it into projects.  When it works shareholders do very well.  If not, there is no disgrace in honest failure.

·     Petrel has raised a total of $15 million or £10 million from 1994 to date.  Petrel now has $7 million in cash or near-cash and a market capitalisation of $24 million.  It has operated continually in Iraq since 1999 and has run a Baghdad office through sanctions, invasion, civil war and 5 governments.  It is estimated that a minimum annual security budget would cost $2 million since 2003 - or equal to all of the funds that Petrel has raised.

      ·     We have been forced to look outside of the Middle East to access big potential oil projects. Petrel

               also gains from the contacts of its management elsewhere: this brought a 30% stake in the

               fashionable Ghanaian Tano 2A Block.  There are more such opportunities.

·     We have overcome serious difficulties in recent years and face the future with renewed confidence.

All motions were approved at the meeting.

Enquiries:

Petrel Resources Plc
David Horgan, Managing Director	[phone]
John Teeling	[phone]
Astaire Securities Plc
Charles Vaughan Gavin Burnell	[phone]
Toby Gibbs
College Hill
Nick Elwes	[phone]

www.petrelresources.com

 

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