Production Sharing Agreement

Petrel Resources PLC
22 May 2007


                                 PETREL RESOURCES PLC

                  PRODUCTION SHARING AGREEMENT IN JORDAN FINALISED

•  East Safawi Block is prospective exploration territory, close to producing 
   fields
•  3 year exploration programme agreed, commencing with technical analysis and 
   seismic to define drilling targets

Further to the announcement on 1 May, Petrel Resources, the AIM-listed oil
explorer and developer operating in Iraq, confirms finalisation of a Production
Sharing Agreement (PSA) on the East Safawi Block in Jordan.  King Abdullah of
the Hashemite Kingdom of Jordan attended the ceremony, where a total of $2.5
billion of investment was announced by the Jordanian authorities.

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

Jordanian Production Sharing terms are clear and attractive. 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.  There were no material objections to the Petrel contract in
parliament or elsewhere.

The agreement envisages a 3 year first phase exploration. Initial work includes
seismic reprocessing and reinterpretation and new seismic.  Targets identified
are expected to be drilled in 2008/09, depending on operational developments.

Jordan is a stable constitutional monarchy.  Building on the success of his
father King Hussein, King Abdullah personally attended the East Safawi and other
signing ceremonies, which underlined Jordan's commitment to responsible
international investment.

Jordan's success, based on pro-business policies, is a model for the region. 
Even political turbulence in neighbouring countries has been turned to advantage
by Jordan, which has attracted outstanding entrepreneurs and investment.

Historically, a concern was that Jordan is most prospective for gas.  This is
now seen as an advantage, due to the massive international increase in demand
for natural gas, both in the region and further. With the Arab gas pipeline
project well advanced, and planned to extend to Turkey and into the European
network, Jordan will be both a supplier and reliable access route for Middle
Eastern gas exports to Europe.

Petrel Managing Director, David Horgan, commented:
'East Safawi is prospective: analysis reinforced our belief that the Arabian 
Desert has considerable oil and gas potential.

At a time of resource nationalism elsewhere, we are heartened by Jordanian
consensus in favour of this project.  There were no objections in Parliament or
the mainstream media to Petrel's contract.  His Majesty publicly demonstrated
commitment by hosting the signing ceremony - giving comfort to citizens and
investors.

Winning the East Safawi Production Sharing Agreement is the culmination of three
years work.   Terms are world-class, especially for oil.  Jordan is both secure
and pro-business, complementing Petrel's Iraq-centred strategy'.


Contacts:

David Horgan, Managing Director               + 353 87 292 3500
John Teeling, Chairman                        + 353 1 8332833

College Hill
Paddy Blewer                                  [phone]
Nick Elwes

Blue Oar Securities
John Wakefield                                [phone]








  Directors: John Teeling, Chairman, David Horgan, Managing, Guy Delbes (FR), Stefano Borghi (ITL), Jim Finn, Company
                                                       Secretary

                          Registered Office: 162 Clontarf Road, Dublin 3, Ireland

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