Re Contract

Petrel Resources PLC
15 June 2004

Petrel Resources plc ('Petrel'), the oil and gas exploration company, is pleased
to announce the acceleration of its Iraqi activities.  Today, Petrel, which is
backed by world class suppliers of oil & gas processing equipment, power
generation facilities and support services, submitted the third of three tenders
to the Iraqi Ministry of Oil.


Despite difficult circumstances work continues in the Ministry of Oil. The
tenders are to develop three existing oilfields.  Oil revenues will underwrite
the recovery of Iraqi sovereignty, damage repair and development and Iraqi
officials are working hard to drive these projects forward.


The Ministry's budgets are approved and the funding for the first phases of the
work is already in place.  These funds are for cash contracts, though a future
sovereign government may convert them to risk-sharing arrangements.


The oil development projects Petrel has tendered for are the Khurmala Dome at
Kirkuk, Hamrin and the Subba / Luhais joint field development.



•   The Khurmala Dome was submitted in April. 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.



•   The tender to develop the 120,000 barrel daily Hamrin field in
    central Iraq was submitted in May.  These reserves are also proven.



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



A general Western Desert geological sampling programme is also underway. Petrel
has a joint venture with the Jordanian Natural Resources Authority giving Petrel
access to priceless well core samples and data, as well as the ability to
extensively sample key outcropping rocks in the Arabian Western Desert,
encompassing plays in Iraq, Jordan and Saudi Arabia. Seismic interpretation,
mapping and evaluating satellite imagery is ongoing.



Commenting on the acceleration of Petrel's activities in Iraq, David Horgan,
Managing Director of Petrel Resources plc, said:



'The end of sanctions opens up the Iraqi oil opportunity, yet the majors are
standing off.  Petrel aims to fill the gap, in partnership with world class
suppliers.  Though the general security situation is challenging, Petrel staff
have encountered no hostility.  We continue to be generously received by Iraqis
of all sects, political views and positions.  Technocrats and business contacts
guide us on how to minimise hazards.  The excellent professional managers grow
in confidence and policy-making independence.  Our Iraqi work is uninterrupted.'



Contacts:

David Horgan                                  Tel:  + 353 87 292 3500
Jim Finn                                      Tel:  + 353 18332833

Redleaf Communications
Emma Kane/James White                         Tel:     [phone]

Rowan Dartington & Co. Limited
Barrie Newton                                 Tel:     [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange