TIDMPET

RNS Number : 8308N

Petrel Resources PLC

26 May 2020

May 26, 2020

Petrel Resources plc

("Petrel" or "the Company")

Placing to Raise GBP250,000

Update on Iraqi Operations

Petrel Resources Plc (Lon: PET) is pleased to announce that the company has arranged a placing with ETX Capital to raise GBP250,000 (before expenses) via the issue of 7,692,308 new ordinary shares (the "Placing Shares") at a placing price of 3.25p per Placing Share.

Use of Funds

Subject to the appointment of responsible officials by the new Iraqi Government, and the lifting of Covid-19 restrictions, Petrel expects to enter into re-qualification discussions with the appropriate decision-makers at the Ministry of Oil. Discussions may cover Petrel's past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert.

Pending, such discussions, this investment will strengthen the company's Balance Sheet.

David Horgan, Director, commented:

"Petrel is fortunate to have maintained strong relationships with Ministry of Oil officials, even during the darkest hours of sanctions, invasion, conflict, and Covid-19. Our Iraqi Director, Riadh, is a son of the renowned "driller", Mahmoud Ahmed. In Iraq we found World-class geology."

"Prevailing circumstances obliged Petrel temporarily to dis-engage from on-the-ground operations in 2010. We saw too many challenges - both governance, political and financial - to justify risking Shareholders' funds given the then-limited upside available."

"Recent events are transforming this situation. A three-way rivalry among Saudi Arabia, Russia and American producers - aggravated by an unprecedented demand-hit caused by Covid-19 - crashed the oil price. This cripples high cost operations offshore, and unconventional reservoirs. As a low-cost producer, Iraq is now well positioned to exploit this historic opportunity. I believe that Petrel has the experience, contacts and board commitment to help drive forward the next phase of Iraqi oil development."

Admission and Total Voting Rights

An application will be made for the admission of the Placing Shares, which will rank pari passu with the existing ordinary shares in issue, to trading on AIM which is expected to occur on or around 2(nd) June 2020 ("Admission").

Following Admission, there will be a total of 157,038,467 ordinary shares in issue with each ordinary share carrying the right to one vote. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

ENDS

For further information please visit http://www.petrelresources.com/ or contact:

 
            Petrel Resources 
 John Teeling, Chairman                  +353 (0) 1 833 2833 
 David Horgan, Director 
 
 Nominated Adviser and Broker 
 Beaumont Cornish - Nominated Adviser 
 
  Roland Cornish 
  Felicity Geidt                          +44 (0) 020 7628 3396 
 Novum Securities Limited - Broker 
  Colin Rowbury                            +44 (0) 20 399 9400 
 
 Blytheweigh - PR                        +44 (0) 207 138 3206 
  Megan Ray                               +44 (0) 207 138 3553 
  Madeleine Gordon-Foxwell                +44 (0) 207 138 3208 
 
 Teneo 
  Luke Hogg                                +353 (0) 1 661 4055 
  Alan Tyrrell                             +353 (0) 1 661 4055 
  Thomas Shortall                          +353 (0) 1 661 4055 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IOEEAKSSAAPEEFA

(END) Dow Jones Newswires

May 26, 2020 02:00 ET (06:00 GMT)

Petrel Resources (LSE:PET)
Historical Stock Chart
From Aug 2020 to Sep 2020 Click Here for more Petrel Resources Charts.
Petrel Resources (LSE:PET)
Historical Stock Chart
From Sep 2019 to Sep 2020 Click Here for more Petrel Resources Charts.