Re Agreement

Petrel Resources PLC
20 February 2008


                Petrel Resources plc ('Petrel' or 'the Company')

                    Renewed Agreements with Iraqi Government



O      Iraqi Government approved extension to Petrel's current agreements
O      Steady progress on Subba & Luhais EPC project
O      Registration completed for exploration and development contracts



Petrel is pleased to report that the Iraqi Ministry of Oil has today approved
extension of the technical cooperation agreement with Petrel for another year.
The Company expects to meet shortly with the relevant Ministry officials to
formalise arrangements.  It is expected that Petrel will embark on a new oil &
gas field study as part of this programme.

Petrel, as Contractor to the Ministry, is also driving forward the existing
Subba & Luhais EPC (Engineering, Procurement & Supervision of Construction)
project.  Surveys have been conducted and major equipment delivered to site
without security incidents.  Petrel's experience proves that it is possible to
work without insuperable difficulties in southern Iraq.

Petrel has also recently registered as a company interested in future Iraqi
exploration and field development contracts.  Petrel expects to be invited
shortly to discuss Western Desert Block 6, which Petrel has studied since 2000.
The Company believes that negotiations are likely to be conducted under the
existing hydrocarbon laws.


David Horgan, Managing Director of Petrel commented:


'We are very pleased to have begun the process which will see us move from
managing technical studies and EPC projects to becoming a fully fledged
exploration and production operation.

Our long standing experience in Iraq will give us vital first mover and
technical advantage over competitors. We remain entirely committed to our
Southern Iraq development strategy and to working with the Iraqi Oil Ministry to
help monetise the potentially vast resources available to risk aware investors'.





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



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