24 October 2022

Petrel Resources plc

("Petrel" or "the Company")

Placing to Raise £250,000

PDMR/Director Dealing

Total Voting Rights

Petrel Resources Plc (Lon: PET) is pleased to announce that the company has arranged a placing with Monecor (London) Ltd trading as OvalX to raise £250,000 (before expenses) via the issue of 20,833,333 new ordinary shares (the "Placing Shares") at a placing price of 1.2p per Placing Share. Each Placing Share has one warrant attached with the right to subscribe for one new ordinary share at 1.8p per new ordinary share for a period of two years.

Use of Funds

The proceeds of the placing will provide the company with additional working capital, as Petrel's board continues to assess new projects in Iraq, and advance its Ghanaian interests.

Petrel had previously conducted a Technical Cooperation Agreement on the Merjan oil-field in west-central Iraq, in a 50% partnership.

Following the steadily improving security conditions in this part of Iraq, and increasing global oil and gas prices, Petrel had proposed to develop this discovery under applicable Iraq contracts.

Post-election delays frustrated our efforts to advance this project, but as of October 2022 a new administration is being formed.

Accordingly, Petrel expects to enter into pre-qualification discussions with the Ministry of Oil.  Discussions may cover Petrel's past studies on the Merjan-Kifl-West Kifl area, and the Mesozoic and Paleozoic potential of the Western Desert.

Following a hiatus due to the C-19 pandemic and the temporary absence of the farm-out market for oil & gas projects, Petrel is again in discussion with the Ghanaian authorities on ratification and development of its Tano acreage.

Directors and Secretaries Holdings

John Teeling and James Finn have participated in the placing on the same terms as described above as follows;

Admission and Total Voting Rights

An application will be made for the admission of the Placing Shares, which will rank pari passu  with the existing ordinary shares in issue, to trading on AIM which is expected to occur on or around 27th October 2022 ("Admission").

Following Admission, there will be a total of 177,871,800 ordinary shares in issue with each ordinary share carrying the right to one vote.  This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

David Horgan, Director, commented:

"The supply/demand balance for oil is shifting in Iraq's favour.  The dramatic growth in North American fracked output between 2005 and 2014 is no longer a concern for OPEC exporters.  Sanctions on Russia, Iran and Venezuela had constrained the early development of their resources, while demand has returned to pre-pandemic levels - particularly in Asia."  

"The new Iraqi Government plans to streamline contract awards and fiscal terms so as to deliver increased output for Iraq's economic development.  We have the team, experience and skills to participate in the coming boom".

The following information relating to the transaction has been filed with the FCA in accordance with the UK Market Abuse Regulation

John Teeling

James Finn

This announcement contains inside information for the purposes of the UK Market Abuse Regulation.

ENDS

For further information please visit http://www.petrelresources.com/ or contact: