Re Agreement

Petrel Resources PLC
14 December 2004


Petrel is pleased to announce the award of a Memorandum of Understanding by the
Jordanian authorities (convertible, subject to discussion, to an exploration
licence after 6 months) covering the East Safawi block in the Arabian desert
near the Iraqi frontier.


The work programme involves integrating geological data from Jordan and adjacent
regions, aimed at elucidating basin history.  Samples available from relevant
wells will be processed for maturation and apatite fission-track analysis to
reveal the burial history of the basin.  There will be detailed interpretation
of Landsat satellite imagery to provide information on the controlling
structural trends.  Seismic data will be re-processed and existing seismic data
re-interpreted, using the re-processed grid of lines for control.  Time and
depth maps will be prepared for the important reflector horizons.


We expect to sign the Memorandum of Understanding this month and start work in
January 2005.  The East Safawi block lies on an extension to the petroleum
targets being studied by the company in Iraq, and is both prospective in its own
right and also helpful to our understanding of the Arabian Desert generally.


For further information:
Bell Pottinger Corporate & Financial
Nick Lambert [phone]





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