Interim Results

Petrel Resources PLC
30 September 2004

                              Petrel Resources plc

                               Interim Statement

                              29th September 2004


During the period for the six months ending 30 June 2004 Petrel recorded a small
operating loss of Euros 126,000 which is modest in relation to the scale of the
projects which the company has been engaged in.

Between April and June 2004, Petrel submitted plans to develop the Khurmala
Dome, Hamrin and Subba & Luhais oil fields in Iraq.  Each tender is to develop
oil fields producing in excess of 120,000 barrels per day.

Since June, Petrel has been in detailed technical discussions with the Iraqi
Ministry of Oil on all three tenders.  This work clarified and fine-tuned
engineering detail.

In recent days, the Iraqi Ministry of Oil invited Petrel for 'an urgent and
direct discussion to finalize all technical and commercial matters' in respect
of the first two of these projects.  We are urgently meeting to finalise
outstanding technical, contractual and commercial issues.

The tenders are designed as cash contracts, but we hope that they may evolve
into risk-sharing arrangements.  Funding is not a problem.  A major
international group has offered full financing in return for a crude oil
off-take agreement.  We will elect for a full risk-sharing arrangement,
including undertaking exploration risk, as soon as such initiatives are legally
and practically possible.

The World desperately needs new oil developments.  Yet the major source of new
supplies - Iraq, is effectively off-limits for most western companies.

It doesn't have to be this way: we've worked with Iraqi oil professionals for
many years.  They want to develop their resources fairly.  What delayed
development of Iraqi reserves was first sanctions and now the chaos engendered
by war.

Iraq needs to export oil, consumers need energy.  Investors will make it happen,
respecting laws and local sensitivities.  The problems of scarce resources,
energy demand and depleting supply, can be solved.

I visited Iraq eight times before the 2003 war, and nine times since.  We have
experienced no insuperable difficulties or even discourtesy from any faction.  I
believe that Petrel is as well positioned as any Western oil company to
contribute to the development of Iraq's oil resources.

Current political challenges are an opportunity for those able to work in
complex situations.  The Iraqi authorities are supportive.  The new Oil Minister
has boosted morale and galvanised experts to drive development forward, but
their challenge is too great without additional capital, people and technology
from friendly countries.

Petrel works only with the Iraqi Ministry of Oil.  We have no business links,
directly or indirectly, with any military contacts.  Petrel employs, where
possible, local staff.  We hire the best people available. This 'locals first'
policy has insulated Petrel from difficulties experienced by many foreign
companies.

We continue to drive forward our Iraqi western desert exploration work.  Much of
the seismic and well core data was destroyed during the 2003 war.  Accordingly,
we concluded a joint venture with the Jordanian government to take new
geological samples on the western side of the basin.  Existing Jordanian well
cores and chippings have been shared with us. Petrel has conducted fission-track
and other state of the art techniques to enhance our knowledge. We will commence
work on the ground in Block 6 in the Western Desert as soon as it is legally and
practically feasible.

We have spent the last seven years in pursuit of our goal of becoming an
independent oil producer in Iraq. The next few months may see us take important
strides towards this goal.


David Horgan
Managing Director
Petrel Resources plc


Financial Information (Unaudited)
                                                                                          Six Months Ended
                                                                                 30 June 2004              30 June 2003
                                                                                        €'000                     €'000
Group Profit and Loss
Operating Profit / (Loss)                                                               (126)                     (100)
Investment Income                                                                           0                         0

Profit / (Loss) before Taxation                                                         (126)                     (100)
Taxation                                                                                    0                         0

Profit / (Loss) for the period                                                          (126)                     (100)

Profit / (Loss) per share                                                              (.22c)                    (.20c)



                                                                                          Six Months Ended
                                                                                 30 June 2004              30 June 2003
                                                                                        €'000                     €'000
Group Balance Sheet
Fixed Assets                                                                            1,782                     1,167
Current Assets less Current Liabilities                                                   325                     (104)
                                                                                        2,107                     1,063

Share Capital and Reserves                                                              2,107                     1,063




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