Re Alliance

Petrel Resources PLC
06 January 2006



 Petrel Resources enters into Joint Venture to develop Subba & Luhais oil field


Petrel Resources (AIM: PET), is pleased to announce a Joint Venture with a
leading Iraqi Contracting Group, Makman Oil & Gas ('Makman').  The JV covers the
Subba & Luhais oil field development services contract awarded to Petrel by the
Iraqi Ministry of Oil in September 2005, and formally signed in December 2005.
The arrangement is subject to the approval of the Iraqi Ministry of Oil.


Makman will, provide security, local transport as well as construction and
engineering support.  Petrel will continue to provide overall project
management.


Makman is part of a large Iraq commercial group.  Petrel and Makman will form a
new company for the purposes of the JV in which each party will have a 50%
share.  Under the Agreement, Makman will provide a Bank Guarantee for the 5%
Performance Bond, and a further Bank Guarantee to enable the Iraqi Ministry of
Oil's project company to issue a 10% advance payment to finance the project.


Commenting on the Joint Venture Agreement, Petrel Managing Director David Horgan
said:


'Petrel has always been committed to working closely with Iraqis and maximising
local content.  Our partner is Iraq's leading construction group and already
working on two similar projects for the Iraqi Ministry of Oil.  On recent visits
to their operations we have been impressed by their professionalism, technical
excellence and strong local credibility.  The arrangement is a major advance and
helps to integrate Petrel into the local business community'.



Contacts:



Petrel Resources Plc
David Horgan                                      [phone]
John Teeling                                      [phone]
Jim Finn                                          [phone]


Bell Pottinger Corporate & Financial
Nick Lambert                                      [phone]

Rowan Dartington
Barrie Newton                                     [phone]




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