Interim Results

Petrel Resources PLC
28 September 2005





                              Petrel Resources plc
            Interim Results for the six month period to 30 June 2005



Petrel aims to become an Iraq centered oil independent. In recent months, we
have made major progress with the award of a large oil field development service
contract. The award is a major milestone after six years working on this
project.  We will expand and accelerate our Iraqi activities, working closely
with the Ministry of Oil and local communities.



Oil Field Development



The Iraqi ministry of Oil has awarded Petrel the Subba and Luhais oil field
development services contract.



We have worked on this project since 1999.  At $197 million contract price, it
is the biggest and most attractive of the oil field development contracts issued
so far.  The project is located in a part of Southern Iraq where security
challenges are manageable.



There is an established infrastructure: site location is about one hour by good
road from Basra, whose port facilities can be supplemented, if necessary, by
those in neighbouring Kuwait, providing excellent staging points for deliveries
and services to support our work programme.



Our objective is to boost oil production from current levels of under 50,000
barrels daily to a capacity of over 200,000 barrels daily.  A programme of works
will facilitate increased production in phases.  Our contract has options to
become more involved in the field development plan as well as the responsibility
for the commissioning and start up of both the Luhais Central and North and the
Subba Central and North Stations and oil and gas export pipeline systems.



We will be working closely with the Ministry of Oil and hope to broaden and
deepen our working relationship.  Petrel has started mobilising our Project Team
for Engineering definition and is in detailed discussions with main suppliers.



The award represents a statement of confidence in Petrel by the elected Iraqi
sovereign government and especially the internationally respected Ministry of
Oil.  It would not have awarded this high profile contract had they not been
satisfied by the excellence of technical design and commercial approach.



Last week Petrel, together with other tenderers, sent a full team of all
disciplines for discussions to finalise technical commercial and contractual
points on the Kormor Gas Field Project, near Kirkuk in Northern Iraq /
Kurdistan. Negotiations were completed and the outcome is awaited. Our engineers
are now updating our offer in the light of these clarifications.



Following understandable delays in Iraq, while the newly elected government took
charge and reviewed policy, rapid progress is now being made towards the key
national goal of boosting oil production.  Further projects are expected in
2006.  Petrel will be an active participant in the tenders.



Iraqi Exploration



We hope that there will soon be swift progress, following the upcoming
elections, on clarifying the status of pre-war contracts and facilitating the
negotiation of new exploration and development contracts.



The industry hopes that a new Hydrocarbon Law will clarify the situation.  This
may confirm the traditional pre-2003 Iraqi Model Contracts that were agreed or
under negotiation, including Petrel's interest in Western Desert Block 6.
Petrel has already identified targets and is ready to acquire closely spaced
seismic and drill wells as soon as legal title is confirmed.



In the meantime, it is possible to sign Technical Cooperation Agreements.  These
give no formal rights, but give confidential access to much-coveted data on some
of the world's highest potential oil prospects.  Petrel is especially interested
in the central area spreading Eastwards from the Western Desert into
Mesopotamia.  Substantial progress has been made in negotiating the terms of a
cooperation agreement.



Petrel's plan is to invest in, where appropriate, reprocessing and
reinterpretation of existing 2D seismic together with regional work based on
surface geological sampling and satellite imagery. Our extensive work to date in
the Western Desert shows that much can be learnt from the application of new
techniques like Apatite Fission Tract Analysis and the integration of regional
data.  After decades of sanctions, isolation and war, access to Iraqi data is
improving.



Other Arabian Desert Exploration



As part of Petrel's work on Arabian Desert hydrocarbon potential, our staff
collected data from Jordan, Syria and Saudi Arabia.  The enthusiastic
cooperation and vision of the Jordanian authorities encouraged Petrel to
re-evaluate opportunities on the Jordanian side of the Arabian Desert.  The
geology is complex.  A reinterpretation of available data has shown that past
analysis and models were flawed.



In January 2005, Petrel signed a six-month Memorandum of Understanding with the
Jordanian Natural Resources Authority on East Safawi.  This is a large (8,750km
sq.) exploration block bordering Syria and Saudi Arabia and is beside the
producing Risha gas field operated by the Jordanian National Petroleum Company.
The work threw up unexpected geological complexity. We have not yet finalised
drillable targets, but we are developing a model and believe there is a shallow
Triassic oil play as well as deeper gas and condensate targets.  Applying new
techniques, including the reprocessing of 2D seismic, which previously yielded
poor definition images, has greatly improved our understanding.  Petrel has
agreed a work programme and basic terms with the Jordanian authorities.  We look
forward to formalising a Production Sharing Agreement soon.  Any concession is
subject to Parliamentary approval and Royal assent.



During the six-month period ending 30 June 2005, Petrel recorded a small loss of
€244,000.  This is modest in relation to the scale of the projects Petrel is
working on and in relation to progress achieved.  There is strong interest among
international financiers in Petrel's projects.  We do not anticipate funding
difficulties.



Petrel is mobilising a strong technical team in the Middle East to address
progress both in Iraqi and neighbouring countries.  Such opportunities come
rarely in the oil industry.  Iraq is remarkably under-explored.  The potential
is vast.  The only constraints are guts and imagination.  After the frustrations
of sanctions and conflict, we are now embarked on a thrilling phase of our goal
of contributing to the development of Iraqi oil resources.



John Teeling

Chairman

28 September 2005




Group Profit and Loss Account
for the six months ended 30 June
                                                   30 June 05         30 June 04
                                                  (unaudited)        (unaudited)
                                                        €'000              €'000
Operating loss                                          (245)              (126)
Investment income                                           1                  0
Loss before taxation                                    (244)              (126)
Taxation                                                    0                  0
Loss for the period                                     (244)              (126)
Loss per share                                         (.40c)             (.22c)



Group Balance Sheet
as at 30 June
                                                   30 June 05         30 June 04
                                                  (unaudited)        (unaudited)
                                                        €'000              €'000
Fixed assets                                            2,597              1,782
Current assets                                            795                484
Current liabilities                                     (219)              (159)
Current assets less current liabilities                   576                325
                                                        3,173              2,107
Share capital and reserves                              3,173              2,107



Group Cash Flow
for the six month period to 30 June
                                                   30 June 05         30 June 04
                                                  (unaudited)        (unaudited)
                                                        €'000              €'000
Net cash outflow from operating activities              (223)              (193)
Returns on investments and servicing of finance             1                  6
Capital expenditure                                     (378)              (405)
Financing - issue of ordinary share capital             1,309                 20
Increase/(decrease) in cash                               709              (572)



Notes:



1.  The figures for the six months to 30 June 2005 and 30 June 2004 are
    unaudited.  The financial information set out above does not constitute full
    statutory accounts within the meaning of section 240 of the Companies Act 
    1985.



2.  Copies of this announcement will be sent to shareholders and will be
    available for inspection at the Company's registered office at 162 Clontarf
    Road, Dublin 3, Ireland.



Contacts:


Petrel Resources plc
David Horgan                                 + 353 87 292 3500
John Teeling                                 + 353 1 8332833
Jim Finn                                     + 353 1 8332833


Bell Pottinger Corporate & Financial
Nick Lambert                                 + 44 (0) 7811 358 764


Rowan Dartington & Co. Limited
Barrie Newton                                + 44 (0) 117 9330011








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