Global said the invitation followed extensive discussions between the stakeholders and represented an enormous opportunity for the development of the petroleum resources in Kurdistan in Northern Iraq.

Global is now attempting to attract partners into the project, which it acknowledged was fraught with danger.

"Whilst this initiative could lead to important new business for the company, it is clearly recognised that there are very significant unresolved government, administration and security issues in Iraq," said a company statement.

"However, in pursuing the opportunity, the board has taken the view that the project would have very significant upside potential for Global shareholders and that the above issues will in due course be resolved, facilitating normal upstream and downstream petroleum business and operations."

The Chamchamal gas condensate discovery is located 40kms to east of the giant Kirkuk oilfield which has produced 16 billion barrels of oil, most recently at several hundred thousand barrels per day. Chamchamal No. 1 was drilled in 1930 and flowed gas at 11mmcfpd and recovered 43 degree API condensate from the Pila Spi area of interest. Chamchamal No. 2 established a 200 foot gas column from the same zone.

A second zone - the fractured Cretaceous Shiranish Formation contained a 100 foot gas column in Chamchamal No. 2. The reservoir flowed gas at the rate of 7mmcfpd with 54 degree to 63 degree API condensate.

Global says the Chamchamal gas bearing structure could be 30kms and possibly 70kms long. Quoted reserves are 2.1 tcf although considering the size of the structure, the company said this could be conservative. The gas in Chamchamal is reported to contain 100 barrels of condensate per million cubic feet of gas.

The company said the initial work plan is likely to include the drilling, logging and testing of key wells on the Chamchamal and Baziyan Fields to establish reservoir characteristics including porosity and permeability and reservoir productivity through testing.

It said some seismic lines may be considered in the area between Taq Taq and Kirkuk and between Chamchamal and Kirkuk to investigate to what extent Chamchamal extended into this area.