Re Contract

Petrel Resources PLC
02 December 2005


                        Petrel Signs Iraqi Contract


Further to the announcement made on 7th September 2005, Petrel is pleased to
announce that it has formally signed on 1st December 2005 the Subba & Luhais oil
field development services contract with the Iraq Ministry of Oil.


The project is to develop existing reserves to raise production from under
50,000 barrels of oil daily to over 200,000 barrels of oil and 120 million cubic
feet of gas daily.


Petrel has mobilized a development team:  initial work is mainly engineering
design.  We plan to conduct site surveys in close cooperation with Iraqi
Ministry of Oil officials early in 2006.


The Subba & Luhais oil field development services contract is for $197.4
million.


Contacts:


David Horgan                           + 353 87 292 3500

John Teeling                           + 353 1 8332833

Jim Finn                               + 353 1 8332833

Bell Pottinger Corporate & Financial

Nick Lambert                           [phone]



Rowan Dartingon

Barrie Newton                          [phone]


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