Petrel to apply for Iraq drilling licence

Irish oil and gas company Petrel Resources is reaffirming its commitment to Iraq by applying for an oil drilling licence there.

The AIM-listed firm is preparing a detailed proposal to participate in the fourth Iraqi hydrocarbon licensing round.

The application comes after the successful completion of the Subba Luhais oil field development contract and the receipt of final payment of $2.5 million owed on the project. Petrel retains a 10 per cent profit interest, although the firm has warned that prevailing circumstances in Iraq, including delays and materials inflation, mean that profit is likely to be small.

Petrel managing director David Horgan said the firm expected renewed progress in the coming months to drive forward the development of Iraq, and in particular its hydrocarbons industry, to the benefit of all stakeholders.

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