RNS Number:6271R
Petrel Resources PLC
04 November 2003

                #959,500 placing by Petrel Resources PLC ('Petrel')
                         to fund Iraqi oil activities

Petrel has placed 7,380,762 shares at 13p each in a private placing with a small
number of institutions.  Funds raised will be used to advance our Iraqi oil
interests.  Petrel is negotiating with the Oil Ministry in Baghdad to explore
Block 6 in the Western Desert. This block covers 10,000 sq km.  Petrel and the
Oil Ministry have identified large structures, which may contain hydrocarbons.

As part of the reconstruction of Iraqi oil, selected companies will be invited
to tender to refurbish and develop certain oil fields.  Petrel staff visited
these fields this week.

David Horgan, Petrel Managing Director elaborated:

"Since the war I visited Iraq four times.  We were warmly received.  Former
secrecy is gone.  Technical experts help keep our staff safe and productive.
They will develop their oil industry.  This will not be another wasted
opportunity.

Life improves.  Infrastructure is slowly being repaired.  Money released from UN
accounts is available.  Congress and international donors pledged over $40
billion.

Despite politically motivated incidents, reconstituted Iraqi police dramatically
cut ordinary crime.  Re-hiring professional soldiers will stabilise areas where
Petrel works.  Travel and work are now much safer.

Technical experts set aside differences to rebuild the country.  Oil output is
now two-thirds of pre war levels.  Technicians recovered about 40% of seismic
and 10% of core data previously feared lost.

Further progress requires international investment.  Yet there remains
uncertainty about future policy.  This, together with security concerns, deters
oil majors.  Where they see difficulty, we see opportunity.  Great crises make
great nations.

Officials are keen to explore the western desert, where Petrel has an agreement
on the key Block 6.  Iraqi authorities are preparing detailed maps for our team.
We are interpreting satellite imagery and refining our geological model.  We
believe that the large identified structures are oil-prone.

The urgent need is to develop existing oil discoveries.  Petrel is pre-qualified
and invited to tender for three fields in the north and south.  Our
international petroleum process engineers and geologists, complementing our
Iraqi team, received enthusiastic cooperation from local officials.

Iraq has too much oil and too important an address to be cast adrift.  It will
be fixed.  Iraq will be key to the world's energy future.  Petrel will play a
full role in this noble development, in the interests of Iraqis, energy
consumers and shareholders.

The coming months will be an exciting time for Petrel."


Three of the directors of the Company have participated in the placing and their
subscriptions and number of shares now held by those directors is detailed
below.

                  Number of shares   Total holding in       Percentage of 
                          acquired            Company      enlarged share 
                                                                  capital

John Teeling               115,384          3,615,384               6.2%
James Finn                 115,384          1,015,384               1.7%
David Horgan               115,384          2,715,384               4.7%


Application will be made for the new ordinary shares to be admitted to trading
on AIM and it is expected that admission will take place and dealings commence
on 10 November 2003.



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