Production Sharing Agreement

Petrel Resources PLC
01 May 2007

                              PETREL RESOURCES PLC

             Petrel awarded Production Sharing Agreement in Jordan


•    Petrel awarded PSA by Jordanian government covering East Safawi Block

•    Highly prospective exploration territory, close to producing fields in both
     Syria and Jordan

•    3 year exploration programme agreed, commencing with seismic interpretation
     and acquisition to define drilling targets

Petrel Resources, the AIM-listed oil explorer and developer operating in Iraq,
has finalised a Production Sharing Agreement (PSA) on the East Safawi Block in
Jordan. The PSA Effective Date will be May 1st when it will be published in the
Official Gazette of Jordan.

The East Safawi Block forms part of the oil and gas prospective Arabian Desert.
The East Safawi block adjoins the producing gas field at Risha and neighbouring
oil producing blocks in Syria. The oil targets are in shallow formations and
there are well-established gas plays at deeper levels.

The Jordanian Production Sharing terms are world class. The contractor receives
60% of oil production - or gas equivalent - up to 10,000 barrels daily, with a
sliding scale to a 35% share of production over 100,000 barrels daily oil
equivalent.

The agreement allows for a 3 year first phase exploration. Initial work includes
seismic reprocessing and reinterpretation and new seismic.  Targets identified
will be followed up by drilling. Work already completed by Petrel on the block
suggests a number of drillable targets. Drilling is expected to take place in
late 2008 - early 2009, depending on operational developments.

Jordan is a stable constitutional monarchy.  The Jordanian authorities are
pro-business. Jordan is part of the Arab gas pipeline project and will be both a
contributor and reliable access route for Middle Eastern gas exports to Europe.

Petrel Managing Director, David Horgan, commented:

'This is a good block, in a highly prospective area: the Arabian Desert has both
oil and gas potential. With great terms already in place, we are starting work
straight away, reprocessing and acquiring seismic to identify drilling targets.

Winning the East Safawi Production Sharing Agreement is the culmination of three
years work with the Jordanian authorities.   Terms are world-class, especially
for oil.  Jordan is an excellent business location: secure, friendly and
pro-business, which geographically and geologically fits well into Petrel's
Iraq-centred strategy'.


Contacts:

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

College Hill
Paddy Blewer                     [phone]
Nick Elwes

Blue Oar Securities
John Wakefield                   [phone]


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