Petrel Signs Iraqi Contract

Petrel has formally signed an oilfield development services contract for the Subba & Luhais field with the Iraq Ministry of Oil.

The project is to develop existing reserves to raise production from under 50,000 barrels of oil daily to over 200,000 barrels of oil and 120 million cubic feet of gas daily.

Petrel has mobilized a development team and initial work will mainly be engineering design. The company plans to conduct site surveys in close cooperation with Iraqi Ministry of Oil officials early in 2006.

The contract is valued at $197.4 million.