Petrel Resources plc announced that it has now completed the initial work on its two highly prospective Licencing Options (1,400km2) in the promising and under-explored Porcupine Basin, offshore west Ireland. It is now moving forward in talks with prospective partners. Option 11/4 in the North of the basin covers Blocks 35/23, 35/24 and the western half of 35/25 and the second option 11/6 in the East of the basin covers Blocks 45/6, 45/11 and 45/16. In addition to the previously identified potential on Quad 35, Quad 45 (Option 11/6) has the capability to hold several hundred million barrels of in-place oil. Interest in the Porcupine Basin continues to rise with the nearby ExxonMobil well about to be spudded on the Dunquin prospect. The basin contains known working petroleum systems at Jurassic and Cretaceous levels, with oil/gas shows recorded in most of the 29 exploration wells drilled in previous times. Flows of high API, good quality oil have been recorded from three wells, with condensate flows recorded in a fourth well. Mature source rocks are proven in the Jurassic and are also likely in the Lower Cretaceous. Good quality reservoir sands have been recorded at Jurassic, Early Cretaceous and Early Tertiary levels.

The board of Petrel Resources plc reluctantly accepted the resignation with immediate effect of Guy Delbès. Guy is seeking to reduce his business interests. Guy Delbès has served with distinction on the Board of Petrel Resources plc since 2000. The company will be appointing a replacement non-executive Director on or before February 8, 2012.

Petrel Resources plc provides a technical update on work done on its 100% owned Quad 35 Licensing Options (11/4 and 11/6) on Blocks 35/23, 35/24 and the western half of 35/25, and Quad 45 Blocks 45/6, 45/11 and 45/16 in the Atlantic Margin. These are located in the highly prospective South Porcupine Basin, in the Irish Atlantic Margin. These blocks cover approximately 1,400 kilometres squared in total, in the northern and eastern sections of the Porcupine Basin. The Eocene deltaic sand bodies lie in an ideal position for the entrapment of northward migrating hydrocarbons, generated from mature Middle /Upper Jurassic and possibly Lower Cretaceous source rocks. Updip seal is provided by marine flooding mudstone deposits. Drill depths to the top of the Eocene sand sequence are about 2,500 metres subsea, in water depths of 700-800 metre. Thick reservoir quality deltaic and shallow marine sandstones have been drilled in earlier wells in the region. The mapped sandbodies have the capability to host in-place reserves in excess of one billion barrels. Lower Cretaceous Target: A large mounded feature with four-way dip closure is onlapped by mud-prone seismic facies. It is interpreted as a basin floor fan deposit, infilling and mounding residual Late Jurassic topography. The structure is undrilled but the seismic signature is significantly different from the mud-prone Lower Cretaceous strata drilled within the basin. The large mounded feature directly overlies Upper Jurassic strata with proven mature source rocks. Quad 45: Stacked targets have also been mapped at Lower Tertiary and Lower Cretaceous levels: Substantial area of structural closure forming a trap at Lower Cretaceous level against the major basin boundary fault. Early Tertiary eastward updip thinning and stratigraphic pinchout of interpreted sand-prone succession. Mounded, prograding Aptian-Albian basin-edge fan with updip shale drape /trap. Basal Cretaceous target horizons pinch out through onlap onto the basin margin. Drill depths of up to 3,000 metres to the Lower Cretaceous marker in approximately 1,000 m water depth. Thick untested reservoirs derived from an easterly source (i.e. Celtic Platform). These results are derived from Petrel's extensive database and updated in the following work programme, which has advanced rapidly in recent months: Purchase of additional 2D seismic lines and re-interpretation of the integrated data set across both option areas. Purchase of 3D seismic data, which is now being interpreted. The 1999-2005 survey covers only the eastern portion of the Quad 35 blocks. Petrophysical appraisal of 17 wells. Inversion of selected 2D seismic lines to assess targeted reservoir sections. Petrel Resources is funding two MSc research students at the UCD School of Geological Sciences at University College Dublin. A seismic project to detail the depositional facies and character of the identified sand bodies and potential reservoirs. A study of the provenance of the reservoir successions using petrographic analysis, followed by the application of the Lead-in-feldspar technique. Next steps will include: Completion of acoustic inversion of selected lines to assist in the assessment of the targeted reservoir sections. Completion of the 3D seismic data interpretation in the south-east part of Quad 35. A seismic /sequence stratigraphic project is underway to characterize the depositional facies of the Lower Tertiary and Lower Cretaceous successions in the option blocks. A provenance study, involving petrographic analysis and the application of Lead-in-Potassium-feldspar geochemistry of the Lower Tertiary and Lower Cretaceous successions is underway.