Trading Statement

Petrel Resources PLC
19 February 2004

                           Update on Iraq activities

Petrel Resources the oil and gas exploration company, is shortly due to submit
tenders to develop three oil fields in Iraq - Kirkuk, Hamrin and Subba / Luhais.

•    The Kirkuk tender to develop the Khurmala dome will be submitted by
     the end of March. This is a proposal to design, build and commission a 
     120,000 barrel daily facility.  The reserves are proven, but there is no 
     surface engineering on this dome.  These are cash contracts, though a 
     future sovereign government may convert them to risk-sharing arrangements.

•    The tender to develop the similarly sized Hamrin field in central
     Iraq will be submitted by April 15th.  These reserves are also proven.

•    The updated tender for the Subba and Luhais joint field development
     of 120,000 barrels daily will be submitted by May 15th.  There is surface
     engineering in place here, but it has been extensively damaged.

Petrel anticipates commencing a general Western Desert geological sampling
programme as soon as weather conditions permit. Seismic interpretation, mapping
and evaluating satellite imagery is ongoing.

The Company has also noted recent press speculation regarding oil trading
contracts in Iraq and has received many enquiries from shareholders in recent
days.

Petrel's decision not to participate in the UN-administered oil for food
programme between 1999 and 2002 has been fully vindicated. Short-term, one-off
commissions were available and attractive at the time - each 2 million barrel
oil trade could have produced commission of $600,000, a substantial sum to an
explorer.

The Petrel board made a conscious decision to go for the main prize - an Iraqi
oil field, and this strategy remains in place.



Contacts:

Petrel Resources plc
David Horgan               + 353 87 292 3500
Jim Finn                   + 353 86 258 1178

Redleaf Communications
Nick Lambert            [phone]


  PETREL is an Oil Explorer in Iraq traded on the AIM market in London. Ticker
                                  symbol (PET)


                            www.petrelresources.com


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