Stmt re Iraqi oil development

Petrel Resources PLC
27 September 2004



           Petrel in commercial discussions on Iraqi oil development

Since June Petrel has been in detailed technical discussions with the Iraqi
Ministry of Oil on three tenders submitted between April and June 2004.  This
work clarified and fine-tuned the technical and commercial details of the
contracts.



Earlier Petrel had submitted plans to develop the Khurmala Dome, Hamrin and
Subba & Luhais oil field.  Funding has been allocated but Petrel has also
offered full project financing via an international partner.  In recent days the
Iraqi Ministry of Oil invited Petrel for 'an urgent and direct discussion to
finalize all technical and commercial matters' in relation to the first of these
three tenders.


David Horgan
Managing Director
Petrel Resources plc
+ 353 1 833 2833


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