Business
Trading Statement
Trading Statement.
About this update from Petrel Resources Plc
[{"type":"text","content":"\n Petrel Resources PLC\n27 March 2006\n\n Petrel operational update on Iraqi activities\n\n\nPetrel Resources plc (AIM:PET), the London AIM-listed company working in the\nIraqi oil industry, announces an operational update:\n\n\nSubba & Luhais Oil Field Development project is moving ahead\n\n\n• Project personnel mobilised\n\n• Engineering work underway at Petrel offices in Europe\n\n• Joint Venture with local partner\n\n• Letter of Credit opened and activated\n\n• No insuperable security problems encountered\n\n\n\nProject Personnel Mobilised and Engineering Work Underway\n\nDuring March Petrel and partners held technical meetings with the Iraqi Ministry\nof Oil State Company for Oil Projects (SCOP) to present design work to date and\nto review our overall schedule.\n\nEarly mobilisation of our Engineering Team allowed Petrel to progress ahead of\nschedule. Processing and design conditions were agreed.\n\nPrior involvement of major suppliers (such as Gas Compression Systems) confirmed\nthe technical and commercial basis of supply as we had originally tendered. We\nanticipate placing long lead orders during the 3rd quarter of 2006.\n\nSCOP also confirmed their desire to utilise the associated gas produced from the\nLuhais field - rather then the historical method of flaring. Accordingly we\nestablished a Work Group to prioritise and expedite plant deliveries to achieve\nearly revenue. This will also provide environmental and operational benefits.\nThis confirms official confidence in our abilities and commitment to help\ndevelop the Luhais and Subba oil fields.\n\nOur focus is now twofold; on design definition as part of our Front End\nEngineering Design program for SCOP review and acceptance in the 3rd quarter of\n2006 and, secondly, in securing equipment and delivery conditions for the Long\nLead items and pipeline material.\n\n\nLetter of Credit opened and activated:\n\nWe agreed with the Iraqi Ministry of Oil (SCOP) and the Trade Bank of Iraq (TBI)\nthe conditions and procedures for the issue of the Project Letter of Credit (LC)\nfrom the TBI that made available the circa US$20 million advance payment. This\nwill also provide acceptable collateral for further payments from TBI and\nissuance of subsidiary Letters of Credit to our major suppliers.\n\nWe set up a trading account with the TBI to handle finances on...