October 14, 2004

PETROLEUM & RESOURCES CORPORATION NINE MONTHS PERFORMANCE REPORTED

BALTIMORE, MARYLAND, October 14, 2004 -- Petroleum & Resources Corporation today announced its performance results for the nine-month period ended September 30, 2004. For the period, the total return on Petroleum & Resources' net asset value, after adjusting for income dividends as well as the capital gain distribution paid in 2004, was 17.8%. Comparable figures for the Dow Jones Energy Index and the Standard & Poor's Index of 500 Stocks were 24.6% and 1.5%, respectively.

For the twelve months ended September 30, 2004, the total return on Petroleum & Resources' net asset value, after adjusting for income dividends as well as the capital gain distributions paid, was 32.5%. Comparable figures for the Dow Jones Energy Index and the Standard & Poor's Index of 500 Stocks were 42.7% and 13.9%, respectively.

The net asset value of the Corporation at September 30, 2004, is compared with the year earlier in the table below.

The net capital gain realized on investments for the nine months ended September 30, 2004, was $0.73 per share.

SECURITIES TRANSACTIONS

During the third quarter, Petroleum & Resources added one new name to its portfolio list with the purchase of Aquila Inc. The Corporation added to its positions in Nabors Industries Ltd., Noble Corp., Noble Energy, Inc., and Smurfit-Stone Container Corp.

Four positions were eliminated from the portfolio with the sales of Albemarle Corp., Ingersoll-Rand Co., Ltd., Temple-Inland Inc., and Unocal Capital Trust $3.1252 Conv. Pfd. Reductions were made in the holdings of Amerada Hess Corp., Aqua America Inc., Arch Coal Inc., EOG Resources, Inc., MDU Resources Group, Inc., and "Shell" Transport and Trading Co., plc ADR.

Petroleum & Resources Corporation is a Baltimore-based closed-end investment company. It is listed on the New York Stock Exchange and Pacific Exchange, and its symbol is PEO. The Third Quarter Report will be mailed to stockholders and posted to our website: www.peteres.com on or about October 22, 2004.

* * * * * * * * * * * * * * * * *

For further information, please contact:

Douglas G. Ober, Chairman & CEO
Lawrence L. Hooper, Jr., Vice President, General Counsel & Secretary
(410) 752-5900 or (800) 638-2479

E-mail: contact@peteres.com
Website: www.peteres.com

For your convenience, all Press Releases are posted to our website. If you would like to receive future Press Releases by fax or e-mail, please let us know.