Petrel Resources PLC on Monday said it has conducted an equity raise for further working capital, as it continues pursuing prospects in Iraq and Ghana.

The hydrocarbon explorer with interests in Iraq and Ghana said it has arranged a placing of 20.8 million shares with Monecor London Ltd, at a price of 1.2 pence per share, for a total of £250,000.

Shares were down 15% to 1.32 pence each in London on Monday morning.

The funds will be used as additional working capital, as Petrel assesses potential new projects in Iraq, and progresses its interests in Ghana.

Petrel had previously conducted a technical cooperation agreement at the Merjan oil field, in a 50% partnership. It had noted the ‘steadily improving security conditions’ in west-central Iraq where the oil field is located, alongside rising oil and gas prices, and proposed developing this discovery.

‘Post-election delays frustrated our efforts to advance this project, but as of October 2022 a new administration is being formed,’ the firm explained.

‘Accordingly, Petrel expects to enter into pre-qualification discussions with the Ministry of Oil. Discussions may cover Petrel’s past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert,’ it continued.

Petrel also noted it has re-entered discussions with Ghanaian authorities concerning the ratification and development of its Tano acreage.

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