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Petrel Resources Renewed Agreements with Iraqi Government

Source: www.gulfoilandgas.com 2/20/2008, Location: Middle East

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Petrel reported that the Iraqi Ministry of Oil has approved extension of the technical cooperation agreement with Petrel for another year.The Company expects to meet shortly with the relevant Ministry officials to formalise arrangements. It is expected that Petrel will embark on a new oil & gas field study as part of this programme.

Petrel, as Contractor to the Ministry, is also driving forward the existing Subba & Luhais EPC (Engineering, Procurement & Supervision of Construction) project. Surveys have been conducted and major equipment delivered to site without security incidents. Petrel's experience proves that it is possible to work without insuperable difficulties in southern Iraq.

Petrel has also recently registered as a company interested in future Iraqi exploration and field development contracts. Petrel expects to be invited shortly to discuss Western Desert Block 6, which Petrel has studied since 2000.

The Company believes that negotiations are likely to be conducted under the existing hydrocarbon laws.

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