REG - Petrel Resources PLC - Placing to Raise £250,000

Petrel ResourcesAnnouncement

06/03/2025 07:15

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RNS Number : 5476Z  Petrel Resources PLC  06 March 2025

 

 162 Clontarf Road

Dublin 3,
 D03 F6T0
 Ireland

Tel: +353 1 833 2833

 Fax: +353 1 833 3505

 info@petrelresources.com

 www.petrelresources.com

 

 

 

 

6 March 2025

 

Petrel Resources plc

("Petrel" or "the Company")

 

Placing to Raise £250,000

 

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."

 

 

 

The information contained within this announcement is deemed to constitute
inside information for the purposes of Article 7 of EU Regulation 596/2014
(Market Abuse Regulations) which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018. Upon publication of this announcement, this
inside information is now considered to be in the public domain.

.

 

ENDS

 

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

 

 Petrel Resources
 David Horgan, Chairman                   +353 (0) 1 833 2833
 John Teeling, Director

 Strand Hanson Limited - Nominated &      +44 (0) 20 7409 3494

 Financial Adviser

 Richard Johnson

 James Bellman

 Robert Collins

 Novum Securities Limited - Broker

Colin Rowbury

                                          +44 (0) 20 399 9400

 BlytheRay - PR                           +44 (0) 207 138 3204

Megan Ray

Madeleine Gordon-Foxwell

 Teneo

 Fia Long                                 +353 (0) 1 661 4055

 Alan Reynolds

 Luke Hogg

 Alan Tyrrell

 

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