Re Contract

Petrel Resources PLC
04 May 2005

Petrel Resources plc



Petrel has noted the recent volatility in the share price and certain press
speculation.  Petrel wishes to report that it has not yet obtained clarification
regarding potential contract awards for oil field developments in Khurmala and
Hemrin referred to in an announcement on 12 December 2004, nor has it received
any formal communication from the Iraqi Ministry of Oil about the status of the
pending Subba & Luhais oil field development.  When there is such notification
the Company will immediately inform shareholders.


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