OIL explorer Petrel Resources said yesterday it had raised more than £1.8million through the placing of shares with three long-standing institutional shareholders.
The money will be used as working capital to advance Ireland and UK-listed Petrel’s projects in Iraqi oil exploration and development.
The firm said it would fully cover Petrel’s working capital requirements until the end of next year.
Managing director, David Horgan, said: “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.
“Iraqi structures are large, oil quality is excellent and exploration success are the best worldwide for massive structures of this type.
“The world needs Iraqi oil development urgently: global oil demand remains resilient. Almost no net oil capacity has been added outside Opec since 2004.
“Many exporting countries are in decline. Opec capacity additions have been slow to appear.
“There has never been a better time to add major new low-cost capacity.
“No western company has more on-the-ground experience. While 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.
“We remain committed to working with the sovereign government of Iraq in Baghdad.”