Statement re. Press Comment

Petrel Resources PLC
12 May 2003

The board of Petrel Resources notes the recent press comment suggesting that a
significant equity placement is likely in the foreseeable future. The Company is
working to secure licences to explore and /or develop oil fields in Iraq but the
company has no immediate plans to issue equity and does not intend to do so
until proposals are agreed with the relevant authorities in Iraq.



The Company also announces that, on 13 March 2003, the Company granted options
to three directors to subscribe for ordinary shares in the Company during the
seven years following the date the options were granted, at a price of 5.25p per
share. The options were granted at nil cost as follows:


Name                          Position                        Number of shares
John Teeling                  Chairman                                 100,000
David Horgan                  Managing Director                        100,000
Stefano Borghi                Director                                  60,000




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