Petrel Resources - moderated discussion/research part II

I think S&L PSA is starting to make sense, albeit a speculative one, regardless of citywhispers' rumour. I personally wouldn't believe it from one person whoever it is, and thrown in the mannner it was.

Look at the quotes below from the 2 articles published recently, paying special attention to the phrases in capital letters. Bear in mind that DH has repeatedly said Pet hope to convert the contract to a PSA, especially with regard to Pet's wish to go for extra oil drilled at depth (as in the first quote below), which would be an extension of the current S&L contract. The extension would normally automatically involve a PSA, since the oil extracted is newly discovered, unlike the current S&L contract which is for oil already discovered and was being produced before the damage to the oil well during the Iran/Iraq war. Here are the quotes:



"Mr Horgan said that while the contract, which envisages daily production of 200,000 barrels of oil and 100 million cubic feet of gas, is to drill for oil proved to exist at shallow levels, THE COMPANY HOPES TO EXTEND THE CONTRACT TO INCLUDE DRILLING AT DEPTH IN THE FUTURE."

=1.asp

"According to market sources, Petrel could be about to announce a deal with a Japanese trading company which is SEEKING TO ACQUIRE OIL."
…………………………………………………………….

In my view, the PSA is as follows : the Japanese tie-up is for oil this company is “SEEKING TO ACQUIRE” (it doesn’t yet belong to anybody, including IMO because not yet explored for/extracted), which can only mean the-would-be newly discovered oil, which is the oil from the NEW EXTENDED CONTRACT of S&L Pet is additionally seeking. Therein may lie the PSA. With DH in the middle east this and next week, it make sense, though a speculative one.