Sunday 24 March 2019

Billion-barrels of oil prospect trebles Petrel's share price

Donal O'Donovan

Donal O'Donovan

PETREL Resources was the big Irish story in the markets yesterday after John Teeling's AIM-listed venture revealed it may have struck oil.

Shares in the company traded on the London AIM doubled, then trebled in price yesterday after the company informed the market that its Quad 45 prospect off the Irish coast could hold potentially as much as one billion barrels of oil.

It sparked a furious share price surge, that eventually drove the one-time 6p share to 18.75p each, a rise on the day of more than 300pc.

Providence Resources, which also has prospects off the Irish coast, was carried higher on similar news, though nowhere near as dramatically, to end the session at 602p in London.

News that staff at Aer Lingus will go ahead with a two-hour stoppage next week saw shares drop 3pc to €1.05 yesterday. Shares in rival Ryanair, which is a major Aer Lingus shareholder, were down 0.6pc at €4.9 each.

Glanbia, which has had a very strong run lately, continued its advance by closing up at €8.05. Elsewhere on the markets trade was light thanks to a public holiday in the US and because investors are increasingly cautious about the implications of that country's 'fiscal cliff' public sector debt crisis.

On that issue, Barclays Bank cut its year-end target for the S&P 500 to 1,325 from 1,395, citing government spending cuts and tax increases that will take effect early next year unless Congress acts before then.

Though most consider it unlikely that a deal on the US public finances will not be reached, analysts fear that "going over the cliff" could push the economy back into recession.

There was better news from China, where a new report showed export growth at a five-month high, beating expectations and adding to recent data suggesting the country's seven straight quarters of slowing economic growth have ended.

In Europe the debate about whether eurozone governments will disburse more money to debt-ravaged Greece was the main issue on the political and economic agenda, though there is a growing expectation the money will be found.

The euro firmed up against the dollar, and stock markets across the continent were little changed.

London's FTSE 100 was down 0.04pc and Frankfurt's DAX rose 0.07pc. In Paris the CAC-40 was down 0.35pc.

Irish Independent

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