October 13, 2005

PETROLEUM & RESOURCES CORPORATION NINE MONTHS PERFORMANCE REPORTED

BALTIMORE, MARYLAND, October 13, 2005 -- Petroleum & Resources Corporation today announced its performance for the nine-month period ended September 30, 2005. The total return on net asset value, after adjusting for income dividends as well as the capital gain distribution paid in 2005, was 36.6%. Comparable figures for the Dow Jones Oil & Gas Index and the Standard & Poor's Index of 500 Stocks were 42.1% and 2.8%, respectively.

For the twelve months ended September 30, 2005, the total return on Petroleum & Resources' net asset value, after adjusting for income dividends as well as the capital gain distributions paid, was 42.9%. Comparable figures for the Dow Jones Oil & Gas Index and the Standard & Poor's Index of 500 Stocks were 48.2% and 12.3%, respectively.

The Corporation's net asset value at September 30, 2005, is compared with the year earlier in the table below.

The net capital gain realized on investments for the nine months ended September 30, 2005, was $1.01 per share.

The Corporation repurchased 330,150 shares of its Common Stock during the quarter, and 675,550 shares during the nine month period.

SECURITIES TRANSACTIONS

During the quarter, Petroleum & Resources added two new names to its portfolio with the purchases of Alon USA Energy, Inc. and Valero Energy Corp. The Corporation added to its positions in Arch Coal, Newfield Exploration, and XTO Energy.

The Corporation reduced its holdings in AGL Resources, Amerada Hess., DuPont, EOG Resources, Holly Corp., Kerr-McGee, Martin Marietta Materials, Murphy Oil, New Jersey Resources Corp., and Royal Dutch Shell Plc ADR (which changed its name from Royal Dutch Petroleum Co. ADR due to a conversion).

Petroleum & Resources Corporation is a Baltimore-based closed-end investment company. It is listed on the New York Stock Exchange and Pacific Exchange under the symbol PEO. The Third Quarter Report will be mailed to stockholders and posted to our website: www.peteres.com on or about October 19, 2005.

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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

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