The Sunday Times - Business
January 02, 2005
Petrel still upbeat on Iraqi oil prospects
PETREL RESOURCES, the Dublin-based oil exploration minnow whose share price has taken a hammering since it lost out on a lucrative development contract in Iraq, believes it has been a victim of misinformation, writes Douglas Dalby.
John Teeling, the chairman, conceded the company had probably been unsuccessful in winning the first of three imminent contracts from the Iraq administration but said that, contrary to media reports, the company remained in the running for the other two.
“We are awaiting notification but this is most likely to come from the government rather than the oil ministry,” said Teeling. “There have been leaks from the oil ministry but there has been nothing official from the government itself despite recommendations on which companies are to be awarded the contracts.”
Teeling said there was “genuine confusion” about the status of the latter contracts because of the political decision-making process in Iraq.
“Shareholders are giving us dog’s abuse but there is nothing I can do because I am totally in the dark about this,” he said. “One analyst said our shares were either 20p or £2 depending on how you looked at things but right now I just don’t know.”
The share price, which soared last year on speculation of a successful breakthrough in Iraq, ended 2004 at 48p (68c). The shares reached a high of £1.34 last October, a 500% increase on their 24p value in February.
Teeling said that apart from the two imminent contracts down for a decision, a further 66 fields were awaiting development. This would happen, he believed, regardless of the outcome of the elections scheduled for next month, and Petrel had built up the expertise to bid on many of them.
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