🕐24.09.13 - 08:27 Uhr

PETREL - INTERIM STATEMENT FOR THE PERIOD ENDED 30 JUNE 2013



Petrel Resources plc ("Petrel" or the "Company") Interim Statement for the period ended 30 June 2013 Highlights:
� Iraqi investment enhanced through 20 per cent shareholding acquisition in Amira Hydrocarbons Wasit B.V.

This deal gives Petrel an immediate effective 5 per cent carried interest through to production in exploration and production licences operated by Oryx Petroleum in Wasit. � Heads of Agreement with Woodside, Australias largest gas exporter, which will become operator and 85 per cent partner in Petrels operations in the Porcupine Basin. � Steps are being taken to expedite the licences on the Tano 2A onshore/offshore block in Ghana, in which Petrel holds a 30 per cent interest in a signed 2010 agreement. John Teeling, Chairman of Petrel Resources, said: "The last 10 months have been a period of rapid progress and share price appreciation for Petrel Resources: We now have momentum, good partners in Ireland and Iraq and have plans to drive forward."
Iraq
Petrel has strengthened its Iraqi investment and added another string to its Iraqi bow, by acquiring a 20 per cent shareholding in Amira Hydrocarbons Wasit B.V.

("Amira").

Amira, is the holder of a 25 per cent carried interest in oil and gas exploration and production licences in the Wasit Province of central Iraq.

The ultimate operator and funder of the work programme is Oryx Petroleum of Canada, established by the team which built and sold Addax for US$7.3 billion. This strategic partnership strengthens Petrels position in Iraq, where it has had a presence since 1999, and allows Petrel to benefit from Amira Industries reputation and local capability.

Amira Industries has been at the forefront of licence acquisitions in the Iraqi provinces and was the first oil company to sign oil and gas exploration and production contracts with the provincial governments of Salah ad Din and Wasit.

The Amira deal gives Petrel an immediate effective 5 per cent carried interest through to production in exploration and production licences operated by Oryx Petroleum in Wasit. Arman Kayablian, COO of Amira Industries N.V., has joined the board of Petrel as a non-executive director.

Arman has over 10 years experience in project finance and development operations in the energy, utilities and telecommunications industries. The acquisition is in line with Petrels strategy of reinforcing its interests in Iraq.

The shareholding in Amiras assets expands Petrels programme scheduled for the next 18 months, with the potential to drill one or two additional wells.
The investment in Amira is essentially a US$500,000 option price.

The initial consideration comprised an up-front cash payment of US$500,000 and the issue of locked in 18,947,368 shares in Petrel. A further 10,526,316 shares in Petrel will be issued when the first conventional oil well spuds.

When a well is spudded these initial shares become tradeable.

A second tranche of 10,526,316 shares will be issued when there is a commercial discovery.

If no drilling takes place within 5 years the deal expires and all share agreements cease. Petrel is also given a right of first refusal to participate or acquire an operated interest in any future exploration and production licences that Amira Industries secures in the Iraqi provinces of Muthanna, Karbala, Babil and Najaf.

The terms of Petrels participation in such licences are likely to be similar to Amira Industries arrangement with Oryx Petroleum in respect of the Wasit licences. Wasit Overview Wasit is a large, relatively underexplored province in east central Iraq close to the giant East Baghdad field.

Amira holds a 25 per cent carried interest in three contracts with the Wasit Provincial Government to explore and develop hydrocarbons in the Wasit province: an Asphalt Exploration Contract, Seismic Option Agreement and Risk Exploration Contract.

The Wasit Government has a back-in right in respect of the licences which, if exercised in full, will reduce Amiras interest to 20 per cent (equivalent to a 4 per cent carried interest for Petrel). The operator of the Wasit Licence is Oryx, a Canadian E&P independent listed on the TSX with a market capitalisation of US$1.4 billion.

To date, Oryx has identified five principal leads in the province containing 1,010 million barrels of unrisked prospective oil resources.

Amiras interest in the Wasit Licence is carried to production by Oryx. Oryx plans to commence a seismic data acquisition program in 2013 and to drill an exploration well in the first half of 2014.
Ireland
Woodside, Australias largest gas exporter, is farming in to Petrels Porcupine Basin acreage.

Under our Heads of Agreement, Woodside will become operator and 85 per cent partner.

The Irish authorities have welcomed this development.

Official approval for the Woodside farm in to the existing licence options 11/4 and 11/6 was received within 12 days of our application.
The partners are proposing a comprehensive field work programme for a full Frontier Exploration Licence.

The technical work programme under consideration compares very well with those being pursued by other leading companies in this province.

The partners do not believe it is appropriate to disclose these plans prior to consideration and agreement with the proper authorities.
The work programme required under Petrels existing two Licences in the Irish Atlantic Margin was completed by July 2013.

The conclusions were encouraging: there are thick sedimentary sections (10km of stratigraphy) in the Porcupine Basin.

The Seismic database has responded well to analysis, and further reprocessing and a more detailed programme of fresh 3D seismic is now technically justified.

We believe 800 to 1,000 metres of water requires 3D seismic to identify drilling sites.
Petrels technical team has worked up 2 main plays in our Licence Option 11/4 in Quad 35: A Lower Cretaceous fan mound resting on the Jurassic which has good, proven source rocks.

Overlying this are inclined delta clinoforms (slopes) of Lower Tertiary age, which show potential sands offering potential targets.

The eastern Quad 35 offers 3 potential prospect levels - another Lower Cretaceous mound on the Jurassic surface, well defined Lower Tertiary deltaic clinoforms, and a Tertiary shelf-edge mound.
In our Licence Option 11/6 in Quad 45 Petrels technical team has identified 3 potential sand pinch-out plays.

The Quad 45 prospects are not geologically comparable to or in any way affected by the recent ExxonMobil operated well at Dunquin, in neighbouring Quad 44.

The Dunquin well was a true "wildcat" in that there was no 3D seismic or historic well control closeby.

While that well did not flow oil, it confirmed that extensive oil had been generated in this part of the Porcupine Basin and a 144 foot residual oil column was logged.

This confirmed Petrels long-standing hypothesis that this part of the Porcupine Basin was oil prone.
Ghana (30 per cent Interest in Pan Andean Resources Ltd)
The oil industry in Ghana continues to grow and develop.

Petrel holds a 30 per cent interest in a signed 2010 agreement over the Tano 2A onshore/offshore block in a highly sought after area of Ghana.

We continue to press on with ratification.

In the past two years we have been asked to provide certain guarantees which are not required in the agreement with the Ghanaian National Petroleum Corporation (GNPC).

We have provided all reasonable evidence of financial and technical capability.

We have fully complied with all obligations under the signed Petroleum Agreement, and spent with our partners, over US$1.0 million to date.

We are pressing GNPC to submit the agreement to the Cabinet and Parliament.

Petrel is not alone in awaiting licence ratification; many other agreements are also in the queue.
Finance
Petrel is well financed going forward.

Iraq and Ireland will be largely self-funding while there will be little expense in Ghana until ratification is obtained.
Petrel currently holds cash balances of US$2.2 million and will receive over US$1.3 million of back costs from Woodside once the formal exploration licences are issued.
Future
We expect activity to speed up in the coming months.

Early 2014 will see preparations for drilling on the Spanish Point licence offshore Ireland.

While not directly affecting Petrel it should lead to investor interest.

Oryx and Amira are actively seeking permits to conduct seismic in the Wasit province.

Steps have been taken in Ghana to expedite licences on the Tano 2A block.
ENDS Enquiries: Petrel Resources Plc
David Horgan, Managing Director +353 (0)87 292 3500 John Teeling, Executive Chairman +353 (0)1 833 2833
Northland Capital Partners Limited
John Howes / Alice Lane Edward Hutton / Gavin Burnell +44 (0)20 7796 8800
Blythe Weigh Communications +44 (0) 207 138 3204 Tim Blythe Halimah Hussain +44 (0) 781 692 4626 +44 (0) 7725 978 141 Eleanor Parry +44 (0) 755 129 3620
Pembroke Communications
David OS�och�in +353 (0) 1 649 6486
www.petrelresources.com







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