December 14, 2006

PETROLEUM & RESOURCES CORPORATION EXTENDS SHARE REPURCHASE PROGRAM

BALTIMORE, MARYLAND -- DECEMBER 14, 2006 - The Board of Directors of Petroleum & Resources Corporation (NYSE:PEO) voted today to extend its share repurchase program and has authorized the repurchase of up to 5% of the outstanding shares of the Corporation's common stock over the next twelve months. Purchases will be made in the open market when the shares are trading at a discount of at least 6.5%. The Corporation's discount as of last night's market close was 10.6%. As of December 13, 2006, the Corporation has 20,892,692 outstanding shares, which means that the Corporation is authorized by the Board to repurchase up to 1,044,634 shares over the ensuing year.

The Board has decided to continue the share repurchase program with the expectation that it will enhance shareholder value by increasing the net asset value of the Corporation's stock, reducing the modest dilutive impact on those shareholders who choose not to take capital gain distributions in additional shares, and increasing the liquidity of the Corporation's shares in the marketplace. The repurchase program was initiated in November of 1999 and has been reauthorized by the Board each year since.

Petroleum & Resources Corporation is a Baltimore-based closed-end investment company. It is traded on the New York Stock Exchange.

Safe Harbor Statement: To the extent that any statements made in this press release contain information that is not historical, these statements are essentially forward looking in nature and are subject to risks and uncertainties, including the performance of the portfolio of stocks held by the Fund, the conditions in the U.S. and international financial, petroleum, energy and other markets, the price at which shares of the Fund will trade in the public markets, and other factors discussed in the Corporation's 2005 Annual Report and other Securities and Exchange Commission filings by the Corporation.

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For further information, please contact:

Douglas G. Ober, Chairman, Chief Executive Officer & President
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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