Final Results

Petrel Resources PLC
22 June 2006



            Preliminary Results for the year ended 31 December 2005

Petrel Resource (AIM:PET) the AIM listed Iraq focused Oil Company is pleased to
announce Preliminary Results for the year ended 31 December 2005.


Highlights:



•  Petrel was appointed project manager and developer of the 200,000
   barrel a day Subba and Luhais oil field.  This $197m contract is the largest
   awarded by the Iraqi Ministry of Oil since 2003.



•  In October 2005, Petrel signed a Technical Cooperation Agreement on the
   Merjan oil field, in central Iraq.



•  Petrel has continued work on the 10,000 sq km Block 6 area in the
   Western. Desert of Iraq first awarded in 2003.  This block awaits ratification
   under a new hydrocarbon law.



•  In Jordan, Petrel has negotiated a Production Sharing Agreement on the
   East Safawi block in Jordan.  This awaits parliamentary ratification.



John Teeling, Executive Chairman of Petrel Resources, Commented:



'2005 was a year of very significant development for Petrel.  Our focus remained
firmly on Iraq and I am pleased to report significant progress on a number of
fronts.  We have received our first payment on Subba and Luhais, and we have
acquired an excellent partner in Iraq.



On the exploration front the Merjan deal is a significant forward step.  We have
been in negotiations with a large international group to participate in our
Iraqi exploration ventures.  These talks may come in fruition in the near
future.



We are optimistic about the future.  In the coming months we will complete the
initial Merjan study and place orders for Subba and Luhais equipment.  We know
that the government of Iraq is working on a new hydrocarbon law.  Once passed we
expect confirmation of our Block 6 contract and, at least as important, we
anticipate that new oil field development contracts will be open for
negotiation.'






For further information please contact


Petrel Resources PLC
    David Horgan, Managing Director              [phone]


Bell Pottinger Corporate & Financial
    Nick Lambert                                 [phone]


Rowan Dartington
    Ian Rice                                     [phone]



                              Chairman's Statement


This has been a period of significant development for Petrel in Iraq.  We have
made progress on both oil field development and exploration while in Jordan we
await parliamentary ratification of a Production Sharing Agreement on the East
Safawi block.



Subba -Luhais Oil Field Development



This project, located in Southern Iraq, is on schedule and due to be
commissioned in 2009. The main features to date are:



a) First $20m advance payment received April 2006.



b) Significant construction, security and financial joint venture agreed with
Makman, a major local Iraqi company.



c) Full project management team in place operating in the UK, Italy, Turkey and
Iraq.



d) Engineering design and site/route work underway.



Our Iraqi partners provide local services including security.  The security
risks in Southern Iraq are manageable.



Merjan Oil Field



In October 2005, Petrel signed an agreement with the Iraqi Oil Exploration
Company to study the Merjan field located near to the city of Hillah and some 45
kms to the east of Block 6.  This is a discovered field with an estimated 760
million barrels of light crude in place.



Technical Cooperation Agreements in Iraq give no formal rights but provide
access to data on some of the world's best oil plays.  Work done by Petrel in
the Western Desert using modern techniques will give an improved understanding
of the Merjan resource.



Western Desert Block 6



This large block was awarded to Petrel in 2003 but the agreement was never
ratified.  In the past 3 years Petrel has continued work using available data
and with modern techniques has identified a number of drill targets, two of
which are structural and one stratigraphic.  Ratification of our concessionary
rights await the passing of a new hydrocarbon law.



East Safawi Block Jordan



While our very clear focus is on Iraq, the extensive regional work done by
Petrel in the Western Desert identified opportunities in neighbouring countries,
which share similar geology.  In early 2005, Petrel signed a Memorandum of
Understanding (MOU) with the Jordanian authorities on the 8,750 sq km. East
Safawi Block which adjoins the producing Risha gas field, close to the Iraqi
border.  In May 2006, Petrel made formal application to convert the MOU to a
Production Sharing Agreement.  The identified plays on the block are gas in the
Paleozoic and oil in the shallow Mesozoic strata.



Staffing



This area is vital to our future success.  Over the years in Iraq, we have built
a team which can work in the country and in the oil industry.  One of our main
board directors is Arabic speaking, with decades of experience in the Middle
East.  Our Country Manager is a former senior executive of the Iraq National Oil
Corporation.  We have Arabic speaking, engineers working on Subba and Luhais and
managers with many years experience in the oil industry and the Middle East
region, supervising the project.  Our joint venture with the Makman group brings
additional in-country expertise with particular strength in construction.  They
will oversee security.



Finance



As the Subba and Luhais project develops cash outflow will increase.  The first
advance payment for work done on Subba and Luhais, $20 million, was received in
April 2006.



As orders for piping steel and equipment are placed they will be financed by
Letters of Credit from Iraq.  There will be a need for working capital.  We are
in negotiation with international financial institutions to obtain any required
finance.



Exploration needs equity.  There is ongoing expenditure on Merjan, the Western
Desert and East Safawi.  We are at an advanced stage in agreeing a joint venture
with a multinational oil company which will fund much of the exploration.



Future Prospects



The coming months will be busy for Petrel.  We expect a new hydrocarbon law to
be enacted in Iraq.  This should lead to the ratification of our Black 6
exploration contract.  The new law is also likely to provide for the negotiation
of contracts to develop existing known discoveries.  Petrel has targeted one
such mulit-billion barrel field and, in anticipation, is preparing a submission.
Final engineering plans will be agreed on Subba and Luhais and equipment
ordered in the next few months.



Almost no mineral has better economics than oil and in world oil Iraq is the
lowest cost producer.  Iraq is crucial to the world's energy future.  The only
questions are how and when the reserves will be developed.  Political
difficulties originally gave Petrel access to the opportunity but over the past
nine years we have demonstrated our commitment to Iraq and have shown our
technical abilities in exploration and now in oil field development.



Political stability and a new hydrocarbon law are the priorities for Iraq.  The
Iraqi people, and the world economy, need the development of Iraqi oil.  Petrel
will be part of this development.



John Teeling
Chairman
22nd June 2006




                             PETREL RESOURCES PLC.

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




                                                                                  2005                  2004
                                                                                     €                     €

Administrative expenses                                                      (521,255)             (358,916)


LOSS ON ORDINARY ACTIVITIES
BEFORE INTEREST                                                              (521,255)             (358,916)

Interest receivable and similar income                                          39,720                 8,621


LOSS FOR THE YEAR BEFORE TAXATION                                            (481,535)             (350,295)

Taxation                                                                             -                     -

LOSS FOR THE YEAR AFTER TAXATION                                             (481,535)             (350,295)



Loss per share - basic                                                         (0.77c)               (0.60c)

Loss per share - fully diluted                                                 (0.77c)               (0.60c)





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


                             PETREL RESOURCES PLC.

                CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2005




                                                                                  2005                  2004
                                                                                     €                     €

FIXED ASSETS

Tangible assets                                                                      -                   596
Intangible assets                                                            4,919,367             2,218,409

                                                                             4,919,367             2,219,005


CURRENT ASSETS

Debtors                                                                         37,716               142,907
Cash at bank and in hand                                                     3,729,121                 3,182

                                                                             3,766,837               146,089


CREDITORS : (Amounts falling due within one year)                          (1,718,353)             (256,959)


NET CURRENT ASSETS/(LIABILITIES)                                             2,048,484             (110,870)


NET ASSETS                                                                   6,967,851             2,108,135



CAPITAL AND RESERVES

Called-up share capital                                                        828,851               746,565
Capital conversion reserve fund                                                  7,694                 7,694
Share premium                                                                9,063,625             3,804,660
Profit and loss account - (deficit)                                        (2,932,319)           (2,450,784)


EQUITY SHAREHOLDERS' FUNDS                                                   6,967,851             2,108,135



                             PETREL RESOURCES PLC.

              CONSOLIDATED CASH FLOW STATEMENT AT 31 DECEMBER 2005




                                                                                  2005                  2004
                                                                                     €                     €

NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES                                                         1,051,421             (380,803)


RETURNS ON INVESTMENT AND
SERVICING OF FINANCE

Interest received                                                               39,720                 8,621

NET CASH INFLOW FROM RETURNS ON
INVESTMENTS AND SERVICING OF FINANCE                                            39,720                 8,621

TAXATION

Corporation tax paid                                                                 -                     -

CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT

Payments to acquire intangible fixed assets                                (2,700,958)             (844,546)

NET CASH OUTFLOW BEFORE FINANCING                                          (1,609,817)           (1,216,728)

FINANCING

Issue of ordinary share capital                                              5,477,382               261,086

Share issue expenses                                                         (136,131)               (4,979)

NET CASH INFLOW FROM FINANCING                                               5,341,251               256,107

INCREASE/(DECREASE) IN CASH                                                  3,731,434             (960,621)



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 2005 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.



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