Pre-tax losses fall at Petrel Resources

Company is rebuilding business in Iraq, but some challenges remain

Petrel Resources shares slumped after the explorer said losses narrowed marginally in the six months to the end of June.

In an interim statement for the six months ended June 30th, the hydrocarbon explorer said pretax losses were €140,000 for the six months, down from €162,000 in the same period a year earlier.

Shares in the firm, which is chaired by David Horgan, plunged 24 per cent in London after the earnings statement.

Petrel’s main interests are in Iraq and Ghana. The company said its business in Iraq was being rebuilt, although for the company to progress new funding, a government would have to be formed. Its Iraqi director, Riadh Ani, who Petrel credits with maintaining strong relationships with Ministry of Oil officials through sanctions, invasion, conflict and Covid-19, has resigned with immediate effect to enter public service.

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Iraqi oil output recovered to 4.65 million barrels daily in August 2022.

An updated Merjan oilfield development proposal has been submitted to the ministry, and ratification discussions with Ghanian authorities on Tano 2A block are under way, with acreage adjustments likely.

Petrel said there were new opportunities for expansion presented by oil price and demand recovery.

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist