Final Results

Petrel Resources PLC
18 June 2002

CHAIRMAN'S STATEMENT



Petrel is an AIM listed oil explorer focused on Iraq.  We have pursued oil
exploration and development opportunities in Iraq for the past four years.  We
have reached the stage where commercial terms and a work programme have been
agreed with the oil ministry and now await final approval from a higher
authority.  Despite the political uncertainty in the area we will continue to
maintain our interest in Iraq for the simple reason that it is the best resource
play in the world.  No mineral has better economics than oil and no country has
better oil economics than Iraq.  Iraq is the world's lowest cost oil explorer
with costs less than $1 a barrel.  Iraq may hold the biggest reserves of oil in
the world.  Through, largely unexplored there are already 115 billion barrels of
proven oil reserves in place.  Current daily output of 3 million barrels can be
tripled in five years from known discoveries.



Petrel will be a part of the inevitable development of Iraqi oil.  We are aware
of the high and growing political risk attaching to the area.  Yet it has become
easier to do business in Baghdad in recent months.  There are now regular
flights to Baghdad from Jordan and Syria.  The refinement in the UN sanctions
should improve the inflow of essential foodstuffs, medicines and spare parts
thus helping the day to day lives of ordinary citizens.  Petrel staff and
consultants are frequent visitors to Iraq and have found it an easy country in
which to operate.



Corporate Strategy



We are not immune to the events of 2001.  It is possible that the development of
Iraqi oil will be delayed.  Petrel as a company must survive and develop so we
have begun to look at alternatives.  Given the expertise and skills developed in
recent years we have concentrated our search in Arabic speaking areas seeking
concessions which offer large scale oil potential.  We are trading geological/
technical risk against political risk.



Parts of the Arabic speaking world are being ignored by most of the world's oil
supermajors.  Sanctions restrict some US based companies while other companies
see the political risk as too high and are reluctant to commit staff to an area.



We operate using, where possible, local technical staff and always working with
local contacts.  Our search has thrown up some interesting possibilities but as
yet we have not committed the company.



Future



We have money and prospects.  While we are considering investing in other areas
we continue to focus on Iraq where we intend to stay.





John J. Teeling

Chairman






CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2001


                                                                                    2001               2000
                                                                                       €                  €

Administrative expenses


- Cost of admission to AIM                                                             -          (136,098)
- Other                                                                        (284,338)          (197,721)
                                                                               (284,338)          (333,819)
Exceptional item
Gain on disposal of asset                                                              -            373,528

(Loss)/profit on ordinary activities before interest                           (284,338)             39,709
Interest income                                                                    7,517             11,260

(Loss)/profit for the year before taxation                                     (276,821)             50,969
Taxation                                                                               -            (2,252)

(Loss)/profit for the year after taxation                                      (276,821)             48,717

Profit and loss account: opening - deficit                                   (1,341,523)        (1,390,240)
Profit and loss account: closing - deficit                                   (1,618,344)        (1,341,523)

(Loss)/profit per share - basic                                                  (0.71c)              0.12c
(Loss)/profit per share - fully diluted                                          (0.71c)              0.11c



All gains and losses are dealt with through the profit and loss account.
Results derive from continuing operations.




BALANCE SHEET
as at 31 December 2001


                                                  Group           Company             Group           Company
                                                   2001              2001              2000              2000
                                                      €                 €                 €                 €

Fixed assets

Tangible assets                                   6,576             6,576             4,132             4,132
Intangible assets                               912,812           912,812           503,357           503,357
Financial assets                                      -                 3                 -                 3
                                                919,388           919,391           507,489           507,492

Current assets
Debtors                                           4,952             4,952            16,555            16,555
Cash at bank                                     13,762            13,762           658,669           658,669
                                                 18,714            18,714           675,224           675,224

Creditors: (Amounts falling due within
one year)
                                              (301,664)         (301,667)         (269,454)         (269,457)

Net current (liabilities)/assets              (282,950)         (282,953)           405,770           405,767


Total assets less current liabilities           636,438           636,438           913,259           913,259


Capital and reserves

Called-up share capital                         487,305           487,305           494,999           494,999
Capital conversion reserve fund                   7,694             7,694                 -                 -
Share premium                                 1,759,783         1,759,783         1,759,783         1,759,783
Profit and loss account - (deficit)         (1,618,344)       (1,618,344)       (1,341,523)       (1,341,523)

Equity shareholders' funds                      636,438           636,438           913,259           913,259






CONSOLIDATED CASH FLOW STATEMENT
as at 31 December 2001


                                                                                 2001              2000
                                                                                    €                 €

Net cash outflow from operating activities                                  (238,363)         (165,594)

Returns on investment and servicing of finance
Interest received                                                               7,517            11,260

Net cash inflow from returns on investments and servicing of finance
                                                                               7,517            11,260

Taxation
Corporation tax paid                                                                -           (1,025)

Capital expenditure and financial investment
Disposal of intangible fixed asset                                                  -           682,784
Payments to acquire intangible fixed assets                                 (409,455)         (500,110)
Payment to acquire tangible fixed asset                                       (4,606)           (1,364)

Net cash (outflow)/inflow before financing                                  (644,907)            25,951


Financing
Issue of ordinary share capital                                                     -           539,169

Net cash inflow from financing                                                      -           539,169

(Decrease)/increase in cash                                                 (644,907)           565,120





NOTES



Subsequent to the balance sheet date the Company raised Stg£340,000 through the
issue of ordinary shares.



The financial information set out above does not constitute the Company's
financial statements for the years ended 31 December 2001 or 2000.  The
financial information for 2000 is derived from the financial statements for
2000.



A copy of the Company's annual report and accounts for 2001 will be mailed to
shareholders shortly and will also be available for collection from the
Company's registered office.



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