1 april 2008 petrel resources plc

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April 2008

www.petrelresources.com

Petrel Resources Plc


Contents

• Who we are• Iraq projects• Latest developments• Work program

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Important Notice

• This presentation does not constitute or form any part of any offer for sale or solicitation of any offer to buy or subscribe for any securities in Petrel Resources plc nor shall it or any part of it form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on any other document or oral statement or on the completeness, accuracy or fairness of any such information and/or opinions. No undertaking,representation,warranty or other assurance, express or implied, is made or given by or on behalf of Petrel Resources plc or any of their respective directors, employees or advisors, as to the accuracy or completeness of the information or opinions contained in this presentation, and (save in the case of fraud) no responsibility or liability is accepted by any of them for any such information or opinions or for any errors,omissions,misstatements,negligence or otherwise contained or referred to in this presentation. The contents of this presentation have not been approved by the authorised person within the meaning of the Financial Services and Markets Act 2000.

• This presentation does not constitute an offer to the public as referred to in section 85 of the Financial Services and Markets Act 2000(as amended) of the United Kingdom and accordingly has not been nor will it be approved by any competent authority in the United Kingdom. This presentation is not a prospectus within the meaning of the Prospectus(Directive 2003/71/EC) Regulations 2005 of Ireland and therefore has not been approved by the Irish Financial Services Regulatory Authorities being the competent authority for the purposes of Directive 2003/71/EC in Ireland. This presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies and Miscellaneous Provisions Act 2005 of Ireland.

• This presentation has been prepared by the Directors of Petrel Resources plc and is being issued solely to and directed at persons who have professional experience in matters relating to investments falling within Article 19(1)(a)of the Financial Services and Markets Act 2000(Financial Promotion) Order 2001(“FPO”) or (b)high net worth entities and other persons to whom the presentation may otherwise lawfully be communicated, falling within Article 49(1)(a) of the FPO(all such persons together being referred to as “Relevant Persons"). In consideration of the receipt of the presentation each recipient warrants and represents that he or it is a person falling within that description. Delivery of the information to any other person or reproduction, in whole or in part, without the prior consent of Petrel Resources plc is prohibited.

• This information is being supplied to you, in whole or in part, for information purposes only and not for any other purpose. In particular, the distribution of this document in jurisdictions other than United Kingdom or Ireland may be restricted by laws and persons into whose domain this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of laws of any such other jurisdictions.


Why Iraq?

• World’s largest remaining undeveloped petroleum province• Opportunity for re-developing known fields• Technical costs are the lowest worldwide• Hydrocarbon law allows foreign participation

– Whether under existing or expected new law

• Iraq needs help, but few are willing to take the risk.

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Petrel ResourcesWho we are: background

• Pure Exploration & Production (E&P) play focused on Southern Iraq

• Irish company - listed in London Alternative Investment Market (AIM)

• Highly experienced Iraqi and international team

• Group leverages regional expertise adding complementary opportunities in neighbouring countries

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Petrel chronology

Petrel Established

1997

2000 London AIM

Working agreement signed to explore Block 6 Iraq

2002

Sept 2005EPC contract awardedto Petrel for upgradingSubba & Luhais fields

($197 m)Iraq

Technical cooperationagreement signed

for Merjan fieldOct 2005

Jan 2006JV signed with Iraqi

Makman group to develop Subba & Luhais fields

Established cooperationagreement with Itochu of Japan

Sep 2006

TodayWorking up a risk sharing proposal

for a giant field

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1999Entered Iraq


Petrel top organization

ChairmanJohn Teeling

DirectorGuy Delbès

Finance DirectorJames Finn

Iraq Country MgrMahmoud Ahmed

Director of ProjectsShaun Hennessey

MDDavid Horgan

Project ManagerRod McInnes

Itochu

Oilfield Dev. Resources

Chief Process Eng.Hany Sadek

Trinity CollegeUCD

Director / Employee

Long term contractor

Business partner

DirectorStefano Borghi

Senior GeologistDr Munim Al-Rawi

Senior GeologistDr Manouchir Takin

Senior GeologistDr Dave Naylor

Fugro GeophysicsGSE

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Projects in Iraq

Block 6

Merjan

Subba &

Luhais

Dhufriya

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Status of projects in Iraq

• Block 6 (exploration)

• Merjan field (technical cooperation)• Dhufriya field (technical cooperation)

• Subba & Luhais (EPC)

• Development field

Extensive work completed – awaiting new law

Follow-on 5/2008Start 4/2008

Under development

Under discussion

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Recent developments affecting Petrel

• Downstream law agreed

• Upstream law approved by Cabinet, awaiting ratification by Parliament

• If law delayed the Government proposes to negotiate deals under the old law

• Only western player working on the ground under current conditions – though solid supplier support continues

• Discussions with Iraqi authorities on proposals to develop 2 oil projects on a risk-sharing basis – the details of which will be determined under the final provisions of the new law

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Essence of Iraq upstream hydrocarbon law (draft)

• State of the Art Law– comparable to best international practice

• Indicative contractor production share 20%• Production Sharing Agreements basis for the model• Terms to be negotiated on a field by field basis• 12.5% royalty• Authority of Ministry of Oil and Federal Government clear in

the centre and south of Iraq, where Petrel operates

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Block 6 (exploration): introduction

• Block 6 is considered one of the most prospective of the Iraqi Western Desert Blocks– 3 to 5 billion barrel recoverable potential

• Large structures identified in Mesozoic (oil-prone) and Paleozoic (gas/condensate prone) Formations

• World class exploration opportunity

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Block 6 (exploration): base map

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Merjan field (technical cooperation agreement)Undeveloped discovery

Opportunity to work with the Ministry, learn about Iraq’s regional geology.First official cooperation with Itochu (50% non-operating partner)

Objective: Training and transfer of technology to technical personnel Ministry of OilProgress to date• Seismic reprocessing• Stratigraphy & structures identified over the block area• Top geological maps compiled for the HARTHA & SAFAWI formations• Twenty four well logs have been digitized and being evaluated by Petro-physics group. Well test reports

for the HARTHA formation being evaluated• Assessment being made of the Gross Rock Volumes (GRV’s) of the Structures along with the Porosity

and Oil/water contact and saturation factors from the Logs• Finalise oil in place ranges, reservoir and drainage scenarios, draft development plans and budgets

Near term plans• Advance to Technical Cooperation Agreement on Dhafriya oil & gas field (circa 225mmbo + circa 5 tcf).

Southern Iraq is easier to work in than central region. Also greater potential to add reserves.• Continue to monitor Merjan and provide technical support to Ministry.

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Merjan field (technical cooperation agreement)Basic facts

• Discovered 1983 (undeveloped)

• Located near Block 6

• Oil In Place est. 760 million barrel (first estimates)

• Well data available

• 2D seismic available

• Completed 4/2007 ongoing follow-up

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Subba & Luhais (EPC contract)Project description

• Working this project since 1999. At $197 million contract price, it is the biggest of the oil field development contracts issued so far by the Ministry of Oil. The project is located in Southern Iraq, where security challenges are manageable

• There is an established infrastructure: site location is about two hours by road from Basra, whose port facilities can be supplemented, if necessary, by those in neighboring Kuwait

• Plan is to boost oil production from current levels of under 50,000 b/d to over 200,000 b/d

• Our contract has scope (at the Ministry’s option) for Petrel to become more involved in the field construction phase of the development plan as well as the responsibility for the commissioning and start up of both the Luhais Central and North and the Subba Central and North Stations and oil and gas export pipeline systems for handover to SCOP & SOC.

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Subba & Luhais facilities (export infrastructure)Satellite image

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Subba & Luhais EPC contractNew development plan

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Subba & Luhais EPC contractNew development plan

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Subba & Luhais EPC contractProject time table

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Other regional opportunities: Jordan

• As part of Petrel’s work on Arabian Desert, our staff collected data from Jordan, Syria, and Saudi Arabia. The cooperation of the Jordanian authorities encouraged Petrel to look at the Jordanian side of the Arabian Desert

• In January 2005, Petrel signed a MOU with the Jordanian Natural Resources Authority on East Safawi block. PSA signed in May 2007, with King Abdullah in attendance.

• This is a large exploration block bordering Syria and Saudi Arabia and is beside the producing Risha gas field operated by the Jordanian National Petroleum Company.

• Petrel has not yet finalised drillable targets, but we believe there are shallow Triassic oil plays as well as deeper gas and condensate targets

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Jordan: East Sawafi blockExploration

• Block size 8750 km2

• Terms of the PSA (60% to 35% share, depending on production)

• 15% profits tax• No Parliamentary

queries or press criticism.

• No security problems• Agreement signed

May 2007

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Near term priorities for Petrel

• Formalise contracts after ratification of Iraqi hydrocarbon law or under existing law. Confirm Block 6 exploration & development contract under new law. Negotiate development field contract.

• Complete the Subba & Luhais EPC (Engineering, Procurement & Supervision of Construction) Project.

• Widen international institutional shareholding.

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Corporate Facts

• Cash balance: c.$2.0 million (January 2008) + c.$8 million due from SCOP for Subba & Luhais Basic Design

• 69m shares in issue – diluted 74m• Current Market Cap. (fully-diluted): £69m, €87m, $138m• >1800 shareholders• 25% institutional share holders; including Swiss institutions• Broker/NOMAD : Blue Oar

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Petrel Resources Plc

162 Clontarf RoadDublin 3Ireland

Phone: +353 1 833 2833Fax: +353 1 833 3505

Email: [email protected]

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1 april 2008 petrel resources plc

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