Petrel Resources - moderated discussion/research part II

Another concentration of information for you: From eolas (sorry, clipped the name off)
eolas - 26 Jul'06 - 15:13 - 45324 of 45344



I was at the AGM. The sentiment was very positive, but DH very cautious that nothing be said that was premature, or might cause any concerms to IMO.

S&L proceeding on schedule and target. Design reviewed in last couple of days with Iragi officials in Amman. Should get signoff on design in August. Very keen to ensure that project delivers on time and budget, so show their ability to deliver. 2010 for project completion. Hope to get PSA on S&L. Geology similar to Kuwaiti & Saudi fields. Massive potential at deeper levels (Jurassic).

Merjan study proceeding. Finished by year-end.

Unlikely to get Kormor, but not concerned. Probably go to Indian company who were lowest bidder.

Approached by IMO to work on potential 16BN oil field in South on a risk-sharing basis. Very excited by this one.

Verbally assured they have Block 6. Different geology to oilfields in the South. Analysis looks very promising, more so than when they did initial valuation model in 2003. Asked by shareholder about valuation. Mentioned they had a fully discounted NPV of 80 cents (Euro) for Block, and since then block potential much greater and oil increased by more then 300%, although there has been increase in stell and otehr costs as well. Block 6 in Sunni heartland and that will be an issue, but no need to work on ground for at least another 12 to 18 months. Have good contacts with local 'tribes'. Own Pet staff in Irag from region. Would expect to do JV with a Sunni entity for Block 6 (i.e. not Makman), for security and logistics.

No plans to work in North (Kurdish region) at present. Will only do so with IMO approval.

The major international partner is not involved in Exploration and Production. Looks like an Oil for funding deal. They are not a politically sensitive entity. Japanese trading entity seems highly probable.

East Safawi PSA has been agreed. Hope to have it approved at same time as Sonoran PSA in August. However, could be further delays. Now see Jordan as initally an 'oil' play, as some very interesting logs. The Jordanian oil PSA terms are very favourable.

My overall impression was very bullish. They will be extremely careful what they say. Expect London presentation to be similar in tone and content. The presentation and Q & A session lasted 90 minutes.