Petrel Resources succumbs to profit taking after 5 fold rise

Irish focused oil and gas company, Petrel Resources has come down to earth a little  today with a 28% fall to 19.75p,  after rising as high as 32.5p this morning, up over  five times compared to 6p on Friday. Its market cap has risen from around £3 million to £16 million on hopes it could be the next Providence Resources, which discovered significant resources at its Barryroe prospect offshore Ireland, tripling its share price at one point this year and capitalising it at £385 million.

The company announced yesterday a technical Update on its Irish Atlantic Margin Prospects off Ireland, with detailed modeling outlining a potential one billion barrel prospect on Quad 35; part of the 11/4 Licencing Option, with targets accessible with just one well.

David Horgan, the MD of Petrel said, “We have long known that Ireland’s offshore Porcupine Basin is a hydrocarbon province. There are established petroleum systems, reservoir sands and possible traps at several levels. Our recent work has identified a number of high-potential prospects, at least one of which, we believe, has a billion barrel potential.”

Still some way to go for Petrel since the seismic prospects need to be drilled and appraised, giving plenty of reasons for profit taking today after yesterday’s meteoric rise. As Horgan says “1 billion barrels potential”…not proven reserves.  Further good news for the Irish oil and gas dream and certainly for lucky investors buying in before the rise. Hopefully the drill bit will be kind for Petrel!

Contrarian Investor UK