Petrel Resources

Petrel Resources is an Irish and London listed oil exploration company established in the early 1980s. The Company moved from London’s Ofex Market to the London Stock Exchange’s Alternative Investment Market (AIM) in August 2000.

The focus of the Company's operations is in Iraq, where it has been seeking an agreement to develop three existing oil fields in Southern Iraq while applying for exploration acreage in the Western Desert.

• Petrel Resources is incorporated in Ireland.
• The Company moved from London’s Ofex Market to the London Stock Exchange’s Alternative Investment Market (AIM) in August 2000.
• The focus of the Company's operations is in Iraq, where it had been seeking an agreement to develop three existing oil fields in Southern Iraq while applying for exploration acreage in the Western Desert.
• We have had a presence in Baghdad for years and have successfully built a strong Iraqi and international team and negotiated with the Iraqi Oil Ministry including the first and largest contract awarded since 2003.
• Petrel’s strategy is centered on projects in Southern Iraq, however, as part of the regional cooperation and the technical work that has been undertaken in the region, our staff has gained knowledge of the petroleum systems of the Arabian Peninsula and this has led to the pursuit of select opportunities in neighbouring countries.

* NOTE: The rights of shareholders are in accordance with Irish company law and may differ to the rights of shareholders in a UK incorporated company.

IRAQ

Current Projects

Petrel has been continuously active in Iraq since 1999 and is now considered one of the most established players in the Iraqi oil industry. Petrel works only with the legitimate Iraqi authorities, especially the professional Ministry of Oil. We have always honoured the exclusive right of the Iraqi people and government to regulate their industry and conduct business with approved players.

Subba Luhais EPC
The Iraqi authorities awarded Petrel in 2005, after 6 years of hard work and effort, the contract to develop the Subba & Luhais oilfields located in Southern Iraq to a minimum capacity of 200,000 barrels of oil per day and 120 million cubic feet of associated gas. This $197 million development services contract (EPC) was the first contract awarded after the fall of Saddam in 2003. [READ MORE]

Merjan Technical Agreement
Petrel’s is pleased to be one of the companies involved in providing training and transfer of technology to the technical personnel of the Ministry of Oil. As part of these efforts, Petrel and the Iraqi Oil Ministry recently completed a technical study on the undeveloped Merjan oil field contained. The agreement was signed in Oct 2005 and was successfully completed in May 2007. The study involved seismic reprocessing, well log analysis, core analysis, stratigraphic work, mapping, estimation of reserves as well as drafting potential development plans and budgets. All technical analysis and experience gained has been transferred to the Iraqi Oil Ministry.

Potential Projects

Block 6 Exploration
In 2002 Petrel signed a working agreement with the Saddam Hussein government for Block 6, a 10,000 sq Km exploration block in Western Iraq between Iraq and Jordan. The block is located in a highly prospective area where little exploration activity has been undertaken. Petrel has an agreed work program with the Iraqi Oil Ministry. Clearly there is a risk that the agreement may not be ratified under the new hydrocarbon law but no decision has been made so far. [READ MORE]

Other Projects
The Board of Petrel and its technical team continue to work closely with the Iraqi Oil Ministry in the identification of potential projects in Iraq. The company is currently in discussions concerning a major oil field re development opportunity in Southern Iraq.

Jordan

In May 2007 a Production Sharing Agreement (PSA) was signed in which Petrel retained 100% ownership in the East Safawi block located on the Jordanian Basalt Plateau of the Arabian Desert close to the Iraq border. The PSA has its origins in a Memorandum of Understanding (MOU) signed in 2005 with the Jordanian government's Natural Resources Authority to reprocess seismic and conduct other exploration work on the block.

East Safawi Block has 8750 sq Km, is close to producing fields and forms part of the prospective Arabian Desert. The East Safawi block adjoins the producing gas field at Risha and oil producing blocks in Syria. The oil targets are in shallow formations and there are well-established gas plays at depth.

The agreement envisages a 3 year first phase exploration. Initial work includes seismic reprocessing and reinterpretation and new seismic. Targets identified are expected to be drilled in 2008/09, depending on operational developments.

Historically, a concern was that Jordan is most prospective for gas. This is now seen as an advantage, due to the massive international increase in demand for natural gas, both in the region and further. With the Arab gas pipeline project well advanced, and planned to extend to Turkey and into the European network, Jordan could be both a supplier and reliable access route for Middle Eastern gas exports to Europe.

Board of Directors

John Teeling - Chairman

John Teeling has been Chairman of Petrel 1997. He has been involved in oil and gas and resource projects for more than 30 years. He is the founder and chairman of Pan Andean Resources, Minco, African Gold, Persian Gold and West African Diamonds all listed in London. He is also the founder and a former director of Kenmare Resources and a former director of Arcon and holds interests in a number of industrial ventures. John Teeling holds degrees in Economics and Business from University College Dublin, an MBA from Wharton and a DBA in Business Administration from Harvard. He lectured for 20 years in business and finance at University College Dublin.

David Horgan - Managing Director

David Horgan became chief executive of Petrel in 1997 and has over 17 years of experience in oil and gas and resources projects in Latin America, Africa and Middle East. Mr Horgan is also Chief Executive of Pan Andean Resources, an oil and gas company with activities in South America and the US. He previously worked at Kenmare where he raised finance, captured the premium graphite world wide market and evaluated investment opportunities. Prior to that he worked with Boston Consulting Group internationally for 7 years. He holds a first class law degree from Cambridge and an MBA with distinction from the Harvard Business School. David speaks several languages including Portugese, Spanish and German.

James Finn - Financial Director

James Finn has been the senior financial executive for the company since 1997. Mr. Finn has extensive experience in the administration of oil and gas and minerals companies, and has been responsible for listing several resource sector companies in London. He holds a degree in Management and an Accounting qualification.

Guy Delbès - Director

Formerly a French diplomat, Mr. Delbès is a fluent Arabic speaker and writer. He has 40 years oil experience in the Middle East and has consulted for many of the worlds leading oil and service companies. He is a member of the Académie des Sciences d'Outre-Mer in Paris. Guy Delbès is also President of the Société Littéraire du Jasmin d'Argent and an Officer of the Légion d'Honneur.

Stefano Borghi - Director

Mr Borghi is Co-founder and Managing Director of Convergenza S.A, a European private equity company investing in technology and Co-founder of Livolsi and Partners Spa, a Milan based merchant bank. He was previously Managing Director of Nokia Italia Spa, Managing Director of Cable & Wireless Italia Spa and was an executive with BP Amoco in London from 1988 to 1994. He holds a M.Sc. from the London School of Economics and a degree from the Bocconi University.

Updated from Petrel Resources website 12.09.11