Petrel, the UK-based exploration and development firm, has disclosed that the placing of just over 4 million new shares at a price of $0.69 each – with three longstanding institutional shareholders – has injected approximately US$2.8 million into the company coffers.
Petrel has stated that the funds will be used as working capital to advance the company’s projects in Iraq, which it believes has started to overcome the many problems the country has faced over the past few years in developing its oil and gas industry.
“As access and returns shrink elsewhere, Iraqi oil has never been more attractive. Put simply, Iraq offers the perfect package of the lowest exploration costs combined with the lowest production costs anywhere in the world,” said David Horgan, managing director, Petrel.
“The world needs Iraqi oil development urgently… and no western company has more on the ground experience. Whilst we are entirely aware of the challenges that have been and remain inherent with Iraqi operations, we have never had material security; political or geopolitical concerns,” he added.
