Interim Results

Petrel Resources PLC
21 September 2007

21st September 2007

                              Petrel Resources plc

            Interim Results for the Six Month Period to 30 June 2007

Petrel Resources plc ('Petrel' or 'the Company') is very pleased to announce its
interim results for the 6 months to 30 June 2007.


Highlights: Strong operational progress


  • Continued strong relationship with Iraqi Ministry of Oil
  • Passing of Hydrocarbon Law will allow application for Production Sharing
    Agreements
  • Strong progress at Subba & Luhais field: completed surveys and initial
    delivery of equipment underway
  • Successful completion of Merjan Oil Field Technical Co-operation Agreement
    (TCA) in partnership with ITOCHU
  • Awarded a TCA over the Dhufriya oil field in Central Iraq, to be carried
    out in partnership with ITOCHU


David Horgan, Managing Director of Petrel commented:


'There is no current oil and gas opportunity to match Iraq.  The undeveloped
proven and probable reserves alone are immense, let alone the unexplored deeper
horizons, which have proven to hold massive reserves throughout the wider
region.


We currently base our strategy around three key partnerships; with the Iraqi
Ministry of Oil in Baghdad, with the local communities where we are currently
active in the South of Iraq, and finally with ITOCHU, one of the major
downstream oil companies in the world.


We are confident that our approach will prove to be successful.  Managing TCA
agreements has provided Petrel with vital on the ground experience.  We are
confident that this expertise will be applicable to potential high value
development, exploration and production projects.


After 10 years experience in Iraq, we have a built up an extensive high quality
contact base in the region and retain a belief in Iraq and its people.  Iraq
today is, and will remain, a place where international oil and gas players can
be highly successful.'




Enquiries:


Petrel Resources
David Horgan, Managing Director                       + 353 87 292 3500
John Teeling, Chairman                                + 353 1 833 2833

College Hill
Paddy Blewer                                          [phone]
Nick Elwes

Blue Oar Securities Plc
John Wakefield                                        [phone]
Simon Moynagh



www.petrelresources.com



In recent months Petrel has driven towards its ultimate objective of
participating in the development of Iraqi oil, via risk-sharing agreements.
These agreements will be partnerships with the Iraqi Ministry of Oil. Such
contracts require passage of the Hydrocarbon Law.  This legislation is
exclusively a matter for the elected authorities, but it is hoped and expected
that the outstanding proposal will be passed shortly.

In the meantime, Petrel continues to be very active in Iraq.  We operate the
major Engineering, Procurement and Supervision of Construction (EPC) contract on
the Subba & Luhais fields in southern Iraq.  Basic design has been completed and
signed off.  Detailed design work is largely finalised.  Recently, in depth
surveys have been carried out on-site without significant difficulties.  The
first major long-lead items of equipment are now being delivered to SCOP, the
State Company for Oil Projects.

We completed the Merjan Oil Field Technical Cooperation Agreement (TCA) in May
2007.  The study was undertaken in partnership with ITOCHU, a Japanese
conglomerate, which is one of the major takers of crude oil in the Pacific
Basin.

We were recently awarded an additional Technical Cooperation Agreement over the
oil field, Dhufriya, in central Iraq.  Seismic and geological data are now being
prepared for reprocessing and reinterpretation.  This work will be conducted on
a shared basis with our partner, ITOCHU. Petrel will be the operator.

Petrel operates under the explicit authority of the Iraqi Ministry of Oil and
does not work with any regional authority.  Accordingly, legal questions as to
title awarded by the sovereign Iraqi state and its elected and internationally
recognised government are not expected.  We also work closely with local people
and communities.  We do not use, nor have ever needed foreign security
contractors.

It is anticipated that the Hydrocarbon Law will be passed in the near future.
Hopefully, this will be a single national law.  But at a minimum, it is expected
to legislate for projects in the southern, predominantly Shia areas of Iraq,
where Petrel is working.  Southern Iraq has the best oil potential with the
least risk.  It has large structures, existing pipelines and export facilities.

In time, there will be sufficient legal and physical security to also work in
predominantly Sunni areas of the Western Desert, where we have an interest in
the 10,000 sq km Block 6.  Title to this block needs to be ratified.  Lack of
legal clarity may persist in areas of northern Iraq.  Petrel is not working in
these areas.

Iraq is one of the last great under explored and under developed onshore oil
provinces.  The exploration success rate is very high.  Iraq's oil bearing
structures are large with straightforward reservoirs and low geological and
engineering risks.  The deep oil horizons which provide most production
elsewhere in the world have to date been largely unexplored and untouched in
Iraq.


Iraq's challenging geopolitical conditions require attractive terms to entice
foreign investment and technology unlike those offered in neighbouring Saudi
Arabia, Kuwait and Iran, where there is limited foreign involvement.  Such a
combination of large structures and limited geological risk will not recur in
our lifetime.  Most major companies are deterred by the current situation: now
is the time for boldness.

Petrel's competitive advantage is the knowledge and relationships built up over
10 years working on the ground.  One specific competence is the technology to
quickly increase recoveries from existing reservoirs and to add new barrels to
Iraq's reserves.  This can enable a rapid build up of Iraqi oil exports.

We can work in Iraq.  The successful management of the large Subba & Luhais oil
field development shows that dedicated contractors can operate on the ground.
We have had no direct incidents and have enjoyed the cooperation of local
communities.  The Iraqi authorities and especially, the Ministry of Oil,
continue to be committed to, and supportive of, our efforts.

Petrel staff, both Iraqi and International, have shown exceptional dedication
and flexibility.  Apart from on the ground operations, they have produced
tenders for the development of oil and gas fields which are considered the
technical benchmark by the relevant bodies.  Our Technical Cooperation Agreement
analysis and technology transfer has also been judged first rate.  Petrel's
pioneering exploration work in the Western Desert blends local expertise with
state of the art technology.

In ITOCHU, our Japanese partner, we have the long term support of one of the
world's largest downstream oil players.


Future

Petrel shareholders have shown long term commitment in the face of sanctions and
war.  Though political uncertainty remains, Iraq now has a sovereign elected
government committed to developing hydrocarbons.  Legal title to risk sharing
agreements must soon be a reality.

Petrel is demonstrating that it can operate in the oil rich south of Iraq.  We
will continue to aggressively deepen and broaden our activities in this region.

As the only London Stock Exchange company working in southern Iraq, Petrel has a
decade of presence and experience, giving us early mover advantage in the most
prospective oil province in the world.  Though political stability remains
elusive, there is no uncertainty over the fact that Iraqi oil must be developed.
Iraq needs it, but so too does the rest of the world.

Petrel has the expertise, experience and skills to work with the Iraqi people to
develop the industry.



David Horgan
Managing Director


21st September 2007



Financial Information (Unaudited)

                                                           Six Months Ended
                                                  30 June 07          30 June 06
                                                       €'000               €'000
Group Profit and Loss
Operating Loss                                         (330)               (227)
Investment Income                                         26                  19
Loss before Taxation                                   (304)               (208)
Taxation                                                   0                   0
Loss for the period                                    (304)               (208)

Loss per share                                        (.44c)              (.31c)

                                                  30 June 07          30 June 06
                                                       €'000               €'000
Group Balance Sheet
Fixed Assets                                           3,665               4,169

Current Assets
Stock - Work in Progress                              13,184               1,716
Debtors                                                  187                  28
Bank                                                   6,549               9,378
                                                      19,920              11,122
Current Liabilities
Project Advance Payments                            (14,344)             (7,568)
Creditors                                            (1,049)               (171)
                                                    (15,393)             (7,739)

Current Assets less Current Liabilities                4,527               3,383

                                                       8,192               7,552

Share Capital and Reserves                             8,192               7,552

                                                           Six Months Ended
                                                  30 June 07          30 June 06
                                                       €'000               €'000
Group Cash Flow
Net Cash (Outflow)/Inflow from Operating Activities  (3,823)               5,143
Returns on Investments and Servicing of Finance           26                  19
Capital Expenditure                                    (255)               (305)
Financing - Issue of Ordinary Share Capital            1,151                 792
(Decrease) / Increase in Cash                        (2,901)               5,649



Notes:



1.  The figures for the six months to 30 June 2007 and 30 June 2006 are
    unaudited.  The financial information set out does not constitute full 
    statutory accounts within the meaning of section 240 of the Companies Act 
    1985.



2.  Copies of this announcement will be sent to shareholders and will be
    available for inspection at the Company's registered office at 162 Clontarf
    Road, Dublin 3, Ireland.




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