AGM Statement

Petrel Resources PLC
22 August 2007



                Highlights of the Managing Director's Statement
                              Petrel Resources AGM

                                     Dublin
                               22nd August, 2007

The expected passage of the Iraqi Hydrocarbon Law opens the door to full
participation by private companies in exploring for and developing Iraqi oil.
Iraq is one of the last great under explored and under developed onshore oil
provinces.  The exploration success rate is high.  Iraq's oil bearing structures
are large with straightforward reservoirs and low geological and engineering
risks.  The deep horizons which provide most production in neighbouring Saudi
Arabia, Kuwait and Iran have to date been largely untouched in Iraq.

In normal circumstances a state oil company would limit foreign involvement, but
Iraq's rare circumstances require attractive terms to entice foreign investment
and technology.  Our competitive advantage is our relationships built up over 10
years.  We have the capacity and the ability to increase quickly recoveries from
existing reservoirs and to add new barrels to Iraq's reserves.

Petrel has been active in Iraq for the last decade.  The successful management
of the large Subba & Luhais oil field development in Southern Iraq shows that
dedicated contractors can operate on the ground.  To date, we have suffered no
direct incidents and have enjoyed the warm cooperation of local communities.
The Iraqi authorities and especially the Ministry of Oil, continue to be
committed to and supportive of our efforts.

Petrel continues to have favourable backing from suppliers.  Our Iraqi and
international staff have shown exceptional dedication and flexibility.  Apart
from on the ground activities, 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
was also judged first rate.  Our pioneering exploration work in the Western
desert blended 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.

Our 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 its hydrocarbons.  Legal title to risk
sharing agreements will 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.

All resolutions were passed at the meeting.

Contacts:

David Horgan, Managing Director                             + 353 87 292 3500
John Teeling, Chairman                                      + 353 1 8332833

College Hill
Paddy Blewer                                                [phone]
Nick Elwes

Blue Oar Securities Plc
John Wakefield                                              [phone]
Simon Moynagh

www.petrelresources.com


Notes to Editors:

Petrel Resources is focused on the long-term objective of exploring for and
developing Iraqi oil & gas, in close cooperation with the Iraqi Ministry of Oil.
Petrel is the international company most active in Iraq since 2003.  It
operates the largest Engineering Procurement and Supervision of Construction
(EPC) contract at the Subba & Luhais oil fields near Basra.

Petrel also operates the Merjan oil field Technical Cooperation Agreement in
partnership with Japanese conglomerate Itochu-Cieco.

Petrel has been working on Block 6 since 2002.  Block 6 is the choice 10,000 sq
km block in the Iraqi Western Desert, with large structures and high potential
for Mesozoic oil and Paleozoic gas and condensate.

Petrel was launched under current management in 1997 and listed on the AIM in
August 2000.  It has 1,800 shareholders, and is capitalised at approximately
£65m.




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