Petrel Resources Raises £250,000 for Iraq Oil Projects
By John Lee.
Irish-based Petrel Resources Plc (LON: PET) has raised £250,000 through a share placement managed by Novum Securities.
The placement represents a 45% discount to the closing price on 5 March 2025.
According to a statement from the company, the funds will provide additional working capital, supporting Petrel's efforts to secure new oil and gas projects in Iraq and beyond. Full statement from Petrel Resources:
Petrel Resources Plc (Lon: PET) is pleased to announce that the Company has raised £250,000 (before expenses) through a placing by Novum Securities of 23,809,523 new ordinary shares (the "Placing Shares") at a placing price of 1.05p per Placing Share ("Placing"). Each Placing Share has one warrant attached with the right to subscribe for one new ordinary share at 2p per new ordinary share for a period of two years. The Placing Shares are being issued under the Company's existing share authorities and will represent approximately 11.5% of the Company's issued shares, as enlarged by the Placing. The Placing price represents a 45% discount to the closing price on 5 March 2025.
Use of Funds
The net proceeds of the Placing will provide the company with additional working capital, as Petrel's board continues to assess new projects in Iraq, and elsewhere.
The security situation in Iraq continues to improve, while an investment slow-down since 2014 has led to potential improvements on contract terms which should improve scope for development.
Petrel has recently submitted an application to assume an existing contract east of Baghdad 4 th Bid round award in 2012, at a remuneration per barrel of $5.38.
Block 8 covers 6,000 km2 in Wasit and north-eastern Diyala
Petrel has previously conducted a Technical Cooperation Agreement on the Merjan oil-field in west-central Iraq, in a 50% partnership.
Following the steadily improving security conditions in this part of Iraq, and better global oil and gas prices, Petrel has proposed to develop this discovery under applicable Iraq contracts.
Petrel may be invited to enter into pre-qualification discussions with the Ministry of Oil. Discussions may also cover Petrel's past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert.
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 20 March 2025 ("Admission").
Following Admission, there will be a total of 207,681,323 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.
David Horgan, Director, commented:
" The supply/demand balance for oil is shifting in Iraq's favour. New global oil & gas investment falls short of levels needed to support anticipated demand. The dramatic growth in North American fracked output between 2005 and 2014 is less of a concern for OPEC exporters. Sanctions on Russia, Iran and Venezuela had constrained the early development of their resources, while demand for oil products and LNG continues to grow - particularly in Asia."
"As reported recently in connection with BP negotiations, the Iraqi Government plans to streamline contract awards and fiscal terms so as to deliver increased output for Iraq's economic development. We have the team, experience and skills to participate in the coming boom. "
(Source: Petrel Resources)
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