Final Results

Petrel Resources PLC
28 June 2007

            Preliminary Results for the year ended 31 December 2006



Petrel Resources (AIM:PET) the AIM listed Iraq focused oil company is pleased to
announce Preliminary Results for the year ended 31 December 2006.



Highlights:


•  The passage of the Iraqi Hydrocarbon Law is expected to open up significant 
   opportunities for Petrel.

•  Work continues on the development of the 240,000 barrel a day Subba and 
   Luhais oil field in southern Iraq which is expected to come on stream in 
   2010. Petrel is the project contractor.

•  The technical and geological review of the Merjan oil field has been
   completed and submitted to the Iraqi authorities.  A further study is likely.

•  Our exploration and technical partnership with ITOCHU of Japan was used on 
   the Merjan study.

•  In May 2007, a Production Sharing Agreement between Petrel and the Jordanian 
   authorities was signed covering the 8,750 sq. km East Safawi oil/gas block.


John Teeling, Executive Chairman of Petrel Resources, Commented:

'We have worked in Iraq for 8 years and understand the potential and the need
for oil development in the country. We have worked hard to be a good partner of
the Iraqi people and authorities.


The imminent passing of the Hydrocarbon Law will offer numerous development
opportunities. With the backing of our partner, the Japanese giant ITOCHU, we
hope to participate in these developments, delivering considerable value to our
shareholders'



For further information please contact:


Petrel Resources PLC
    David Horgan, Managing Director           [phone]

College Hill
    Paddy Blewer                              [phone]
    Nick Elwes

Blue Oar Securities Plc
    John Wakefield                            [phone]




                              Chairman's Statement



Each year when reporting to you I highlight the vital role that Iraq will play
in the future of world energy. Let me remind you why. Iraq has the second or
third largest proven oil resources in the world, some 115 billion barrels.
Production costs, below $2 a barrel, are probably the lowest in the world.
There are dozens of proven undeveloped oil discoveries each containing over 1
billion barrels.  The West Qurna oil field, with at least 16 billion barrels
recoverable, is the best undeveloped oil discovery in the world.


Yet, there has been relatively little oil exploration across the deserts of Iraq
or at depth. The total number of oil wells drilled to date in Iraq is less than
the number drilled in the Gulf of Mexico. Many experts believe that Iraq will
ultimately contain over 300 billion barrels of oil and will rival Saudi Arabia
as the world's number one oil producer.


These are the reasons why Petrel focused on Iraq. We have had a continuous
presence there since 1999. Since early 2000 we have worked on the large 10,000
sq km Block 6 exploration concession in the western desert. After submitting
four tenders to develop oil fields we were successful in 2005 when we were
awarded the $197 million Subba and Luhais development contract. In 2005, we
negotiated a technical co-operation agreement on the Merjan oil field.  We are
confident that the passing of the Hydrocarbon Law will open additional and
exciting opportunities for Petrel.


To the average investor watching television or reading the newspapers the
turmoil in Iraq must suggest the impossibility of normal activities. Yet life
goes on. The reality is that in many sectors of society, progress is being
made. By far and away the most important development in Iraq is the new
Hydrocarbon Law which is expected to pass in 2007. The law, the terms of which
have been widely reported, recognises the need to develop Iraq's vast oil
resources using international technology and capital. The necessary debate
between the various parts of the country as to how oil reserves are controlled
and distributed is ongoing and is expected to be resolved in the near term.


Currently Petrel is busy with the large oil field development at Subba and
Luhais. This development, the largest awarded in recent years by the Iraqi Oil
Ministry, will produce 200,000 barrels of oil a day and 120 million cubic feet
of gas when commissioned in 2010 and will cost about $197 million. Most of the
work to date has been in engineering design, plant layout and design and project
team mobilisation. The Iraqi Ministry of Oil currently produces oil at lower
production rates from the fields.


Apart from our work in Subba and Luhais, we are active on the Merjan oil field
technical agreement. We were awarded this contract as part of a very good
programme whereby the Iraqi authorities ask international oil companies to
analyse and evaluate selected undeveloped or complicated oil discoveries.
Because of work carried out by Petrel on our Block 6 exploration concession, the
authorities commissioned Petrel to study Merjan some 45 km east of Block 6.
During 2006, we reprocessed over 500 kms of seismic and conducted structural,
stratigraphic, petrophysical and petroleum engineering studies. The final
report was presented in May 2007. An additional study is being considered.


We have worked on Block 6 in the western desert of Iraq since 2000.  This 10,000
sq km block has had only exploratory seismic surveying and no drilling. Our
work suggests that there is significant hydrocarbon potential. Though we signed
an agreement on Block 6 with the Oil Ministry in Baghdad we expect the contract
to change to reflect the better terms in the new law.


Further, in recent years we have worked with the Oil Ministry to upgrade their
technical, financial and commercial skills. This involves Petrel running
courses employing world class instructors to work with their own technical
staff. These courses have been held in Amman and Istanbul.


Partner


We have a significant partnership with ITOCHU of Japan. ITOCHU is one of
Japan's leading upstream oil and gas companies. We have had a relationship for
some years which was formalised in 2006 with the signing of a strategic
partnership to cover future exploration activities in Iraq.



Jordan


For some years now Petrel has been looking at opportunities in Jordan. The work
done by Petrel on Block 6 in Iraq showed similar geology and, we hope, for
similar opportunities in Jordan close to the Iraq border. In 2005, Petrel
signed an initial agreement with the Jordanian authorities on the East Safawi
Block, an 8,750 sq km area adjoining the Risha gas field. In May 2006 we
negotiated the terms of a Production Sharing Agreement (PSA) which was finally
signed in May 2007. The PSA provides for a three year exploration phase leading
to drilling. We are currently reprocessing and reinterpreting seismic and well
logs.  This will be followed by new seismic. Commercial terms are good in
Jordan.



Future


Having operated in Iraq for the past 8 years we are sanguine about prospects.
Much of the future of Iraq lies in oil development. All parties recognise this
fact. The Hydrocarbon Law will pass. We expect to benefit from this in a
number of ways, ratification of our Block 6 interests, the possibility of
obtaining a PSA on Subba and Luhais and interesting opportunities in other
projects which are likely to be put on offer.

Our foundations are built on our staff, who over the years have operated in a
difficult environment and who have built strong relationships with executives in
the Oil Ministry and with people in the country. Over the years we have
demonstrated our commitment to Iraq. We are prepared to live, work and invest
in the country and we have shown our technical ability to deliver world class
projects. The people of Iraq need peace and stability.When they are ready to
develop their industry we will be there to participate and grow with them.


John Teeling

28th June 2007



CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2006
                                                                              2006                    2005
                                                                                 €                       €

Administrative expenses                                                  (483,108)               (521,255)


LOSS ON ORDINARY ACTIVITIES
BEFORE INTEREST                                                          (483,108)               (521,255)

Interest receivable and similar income                                     67,538                  39,720

LOSS FOR THE YEAR BEFORE TAXATION                                        (415,570)               (481,535)

Taxation                                                                        -                       -

LOSS FOR THE YEAR AFTER TAXATION                                         (415,570)               (481,535)



Loss per share - basic                                                     (0.62c)                 (0.77c)

Loss per share - fully diluted                                             (0.62c)                 (0.77c)


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




CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2006

                                                                                2006                   2005
                                                                                   €                      €
FIXED ASSETS

Intangible assets                                                          3,410,242              4,919,367


CURRENT ASSETS

Stock - work in progress                                                  10,396,141                      -
Debtors                                                                       43,895                 37,716
Cash at bank and in hand                                                   9,450,875              3,729,121

                                                                          19,890,911              3,766,837

CREDITORS: (Amounts falling
due within one year)                                                    (15,957,136)            (1,718,353)

NET CURRENT ASSETS                                                         3,933,775              2,048,484

NET ASSETS                                                                 7,344,017              6,967,851



CAPITAL AND RESERVES

Called-up share capital                                                      843,351                828,851
Capital conversion reserve fund                                                7,694                  7,694
Share premium                                                              9,840,861              9,063,625
Profit and loss account (deficit)                                        (3,347,889)            (2,932,319)

EQUITY SHAREHOLDERS' FUNDS                                                 7,344,017              6,967,851







CONSOLIDATED CASH FLOW STATEMENT AT 31 DECEMBER 2006


                                                                             2006                    2005
                                                                                €                       €

NET CASH INFLOW FROM
OPERATING ACTIVITIES                                                   14,533,274               1,051,421


RETURNS ON INVESTMENT AND
SERVICING OF FINANCE

Interest received                                                          67,538                  39,720

NET CASH INFLOW FROM RETURNS
ON INVESTMENTS AND SERVICING
OF FINANCE                                                                 67,538                  39,720


TAXATION

Corporation tax paid                                                            -                       -


CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT

Payments to acquire intangible assets                                (10,023,638)             (2,700,958)
Receipts in respect of disposal of intangible assets                    1,136,622                      

NET CASH INFLOW/(OUTFLOW)
BEFORE FINANCING                                                        5,713,796             (1,609,817)


FINANCING

Issue of ordinary share capital                                             7,958               5,477,382
Share issue expenses                                                            -               (136,131)

NET CASH INFLOW FROM FINANCING                                              7,958               5,341,251

INCREASE IN CASH                                                        5,721,754               3,731,434







Notes:

1.  The results set out above are not full accounts as defined in the Companies 
Act. Statutory accounts for the year ended 31st December 2006 together with a 
report from the auditors will be filed with the Companies Office in due course.

2.  A copy of this announcement will be available at the company's registered 
offices at 162 Clontarf Road, Dublin 3, Ireland 14 days from the date of this 
announcement.
                            www.petrelresources.com



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