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Petrel Energy receives ASX speeding ticket
Tuesday, March 05, 2013 by Angela Kean

Petrel Energy (ASX: PRL) shares have taken off, rising 31.6% to an intra-day high of A$0.10 today, up from a low of $0.076 last Friday.

The sudden move up prompted the ASX to issue a price and volume query, with around 2.6 million shares changing hands by the closing bell today.

Petrel responded to the ASX saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.

The company did, however, note that it is currently in confidential negotiations with several undisclosed parties regarding a number of oil and gas investment opportunities.

It said any possible transaction is insufficiently definite to warrant disclosure and it will make an announcement if and when negotiations are complete.

Late last year Petrel completed a US$2.5 million investment in 14,000 square kilometres of highly prospective petroleum exploration acreage in Uruguay in South America and an 85% stake in two licences prospective for gas, covering 82,700 hectares, in southern Spain.

The funds will cover the first phase of a three-stage work program, primarily on the acreage in Uruguay.

The Piedra Sola and Salto shale concessions, onshore Uruguay, represent a significant first-mover opportunity for a company of Petrel’s size, in an asset with resource potential normally associated with major oil companies.

French petroleum giant, Total, was granted two concessions to the North of Petrel’s acreage late last year.

Uruguay is substantially underexplored compared to neighbouring Brazil and Argentina.

Petrel had cash reserves of A$2.8 million at the end of December 2012.

http://www.proactiveinvestors.com.au/companies/news/40401/petrel-energy-receives-asx-speeding-ticket--40401.html