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Oil Round-Up: Petrel Resources, Serica Energy, and Faroe Petroleum

Stuart Watson
September 18, 2012

Petrel Resources  (LSE: PET.L  ) heads our oil round-up this morning, with the shares bouncing up 22% to 5.38 pence after giving an update of its progress in Iraq.

The statement itself was, in fact, rather brief and somewhat lacking in detail. Petrel said:

In mid 2012, Petrel appointed a new Baghdad/Amman based team of Iraqi citizens to review the standing of and opportunities for Petrel in Iraq. The first objective was to clarify the position of Petrel with the national authorities in relation to existing and historic projects in which Petrel has or had an interest. This is done.

The second objective is to work with national and regional authorities in Iraq to identify projects in which Petrel can be involved. This work is ongoing.

Nevertheless, given the share price pop, it seems to have pleased some shareholders. The shares have steadily declined for a long time now, having peaked at 150 pence some five years ago.

Serica sources a farm-in
Serica Energy
  (LSE: SQZ.L  ) has reached an agreement with JX Nippon Exploration and Production regarding a 85% interest in Central North Sea Block 22/19c. Serica will retain a 15% interest. JX Nippon will pay to Serica US$250,000 and carry Serica's share of all future costs associated with the license up to and including, at JX Nippon's discretion, the drilling of an exploration well.

Serica had previously partnered with Premier Oil  (LSE: PMO.L  ) on the same block, but they have since relinquished their interest. However, the new deal with JX Nippon will target deeper formations. Serica shares edged 2% higher to 30 pence.

Leni losses increase
Leni Gas and Oil
  (LSE: LGO.L  ) dipped 9% after reporting an increased loss of £1 million. The company is reshuffling its portfolio of assets at the moment, and is also embroiled in a legal dispute with Mediterranean Oil & Gas  (LSE: MOG.L  ) over a stake in a prospect in Malta, which was effectively sold on for a much higher sum just weeks after Mediterranean purchased it from Leni.

Faroe moves into the black
North Sea specialist Faroe Petroleum  (LSE: