October 12, 2006

PETROLEUM & RESOURCES CORPORATION NINE MONTHS PERFORMANCE REPORTED

BALTIMORE, MARYLAND, October 12, 2006 -- Petroleum & Resources Corporation today announced its performance for the nine-month period ended September 30, 2006. The total return on net asset value, after adjusting for income dividends as well as capital gain distributions paid in 2006, was 6.6%. Comparable figures for the Dow Jones Oil & Gas Index and the Standard & Poor's 500 Index were 9.2% and 8.5%, respectively.

For the twelve months ended September 30, 2006, the total return on Petroleum & Resources' net asset value, after adjusting for income dividends as well as capital gain distributions paid, was 2.9%. Comparable figures for the Dow Jones Oil & Gas Index and the Standard & Poor's 500 Index were 1.5% and 10.8%, respectively.

The Corporation's net asset value at September 30, 2006, is compared with the year earlier in the table below.

The net capital gain realized on investments for the nine months was $2.88 per share.

Year-to-date, the Corporation has repurchased 525,550 shares of its Common Stock.

SECURITIES TRANSACTIONS

During the quarter, Petroleum & Resources added two new names to its portfolio with the purchases of Bronco Drilling Co., Inc., and ENSCO International, Inc. The Corporation added to its positions in Baker Hughes, Exxon Mobil, Florida Rock Industries, Hercules Offshore, SEMCO Energy, Suncor Energy, and TODCO.

Four positions were eliminated from the portfolio through the sales of Arch Coal Inc., Precision Drilling Trust, and Western Refining Inc., and the acquisition of Kerr-McKee Corp. by Anadarko Petroleum Corp. Holdings were reduced in Aqua America, BP plc, CONSOL Energy, Hugoton Royalty Trust, Pioneer Natural Resources, and XTO Energy.

Petroleum & Resources Corporation is a Baltimore-based closed-end investment company. It is listed on the New York Stock 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 20, 2006.

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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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