Petrel 'encouraged' with results at Porcupine Basin

Shares in Irish oil exploration group Petrel Resources got a boost on Thursday after the company said the first two phases of work on the northern and eastern sections of the Porcupine Basin are complete, with several new targets having been identified.

The firm said it was "encouraged" by results emerging from the technical study of the area, where, as part of its analysis, it is inverting selected seismic data to test the anticipated presence of reservoir sands. The results will be integrated into it interpretations and allow it to extrapolate data from historic wells.

David Horgan, Managing Director of Petrel Resources, said: "We are excited by the progress being made in the Atlantic margin, as we look to develop our promising assets and yield value for shareholders.

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"Our objective is to develop targets that will attract large partners, to facilitate an early seismic campaign, followed by exploration wells."

He also discussed how a lack of commercial success in the Porcupine Basin previously had led to interest fizzling out, meaning that no true exploration wells were drilled in the basin over the last decade. He said success in comparable reservoirs elsewhere, especially in the West African offshore, had since led to fresh ideas and a resurgence of interest in similar targets offshore Ireland.

"This has led to International oil companies re-examining the Irish offshore. Success in the Atlantic margin elsewhere shows what can be achieved with new thinking and improving technology. Additionally the high oil price and competitive terms are making Ireland more attractive," he added.

The share price leapt 19.5% to 7p by 08:51.

NR