October 11, 2007

PETROLEUM & RESOURCES CORPORATION NINE MONTHS PERFORMANCE REPORTED

BALTIMORE, MARYLAND, October 11, 2007 -- Petroleum & Resources Corporation (NYSE:PEO) today announced its performance for the nine-month period ended September 30, 2007. The total return on net asset value, with dividends and capital gains reinvested, was 25.1%. Comparable figures for the Dow Jones Oil & Gas Index and the Standard & Poor's 500 Index were 27.8% and 9.1%, respectively. The total return on Petroleum & Resources' market value was 21.9%.

For the twelve months ended September 30, 2007, the total return on Petroleum & Resources' net asset value, with dividends and capital gains reinvested, was 35.8%. Comparable figures for the Dow Jones Oil & Gas Index and the Standard & Poor's 500 Index were 41.6% and 16.4%, respectively. The total return on Petroleum & Resources' market value was 37.4%.

The Corporation's net asset value at September 30, 2007, is compared with the year earlier in the table below.

The net capital gain realized on investments for the nine months was $3.23 per share.

Year-to-date, the Corporation has repurchased 469,015 shares of its Common Stock.

SECURITIES TRANSACTIONS

During the quarter, Petroleum & Resources added two new names to its portfolio with the purchases of Lubrizol Corp., and Northeast Utilities. The Corporation added to its positions in Chevron, and Hercules Offshore (via merger with TODCO).

Two positions were eliminated from the portfolio through the sale of Florida Rock Industries Inc., and the surrender of shares of TODCO (via its merger with Hercules Offshore). Holdings were reduced in EOG Resources, General Electric, Noble Energy, Questar, and Suncor 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 19, 2007.

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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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