Re Agreement

Petrel Resources PLC
05 October 2005

Petrel has signed a Technical Cooperation Agreement called a 'Framework of Case
Study' on the Merjan Block with the Oil Exploration Company of the Iraqi
Ministry of Oil.



The Merjan Block is a 300 km2 area surrounding the Merjan oil field, which was
discovered by the Ministry of Oil in 1983.  It is located south of Razzaza Lake
in central western Iraq, about 45km east of Block 6 and 50km west of the city of
Karbala.



A team will be formed of four people from Petrel and four from the Oil
Exploration Company of the Iraqi Ministry of Oil to conduct the study.



Petrel also committed to assist the Oil Exploration Company on latest technology
and training courses.



Coming soon after the award of the Subba & Luhais oil field development services
contract by the Iraqi Ministry of Oil's project division (SCOP), this represents
an important step in building an Iraq-centred oil independent.



Petrel hopes to expand and deepen its cooperation with the Iraqi Ministry of Oil
as quickly as possible.



Contacts:



David Horgan            + 353 87 292 3500

John Teeling            + 353 87 258 1178

Jim Finn                + 353 86 258 1178

Bell Pottinger

Nick Lambert            [phone]


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