Petroleum & Resources Announces 2009 Performance

BALTIMORE, Jan. 14  /PRNewswire-FirstCall/ -- Petroleum & Resources Corporation (NYSE:PEO) announces the Corporation's performance for 2009.

2009 INVESTMENT RETURNS

For the twelve months ended December 31, 2009, the total return on Petroleum & Resources' net asset value, with dividends and capital gains reinvested, was 26.7%. The comparable figures for the Dow Jones U. S. Oil & Gas Index, the Dow Jones U. S. Basic Materials Index, and the S&P 500 Composite Stock Index were 17.3%, 65.5%, and 26.5%, respectively. The total return on Petroleum & Resources' market value was 30.3%.

The annual distribution rate of dividends and capital gains paid to stockholders by the Corporation in 2009 was 6.6%, calculated by dividing the total dividends and capital gains distributed during the year by the average daily market price of the Corporation's Common Stock.

NET ASSET VALUE ANNOUNCED

The net asset value of Petroleum & Resources at the end of 2009 is compared with the prior year in the following table:

                                   12/31/09      12/31/08
                                   --------      --------
  Net assets                   $650,718,323  $538,936,942
  Shares outstanding             24,327,307    23,958,656
  Net asset value per
   share                             $26.75        $22.49







During the year, the Corporation repurchased 215,835 shares of its common stock.

SECURITIES TRANSACTIONS DURING THE FOURTH QUARTER

During the fourth quarter, the Corporation added four new names to its investment portfolio through the purchases of Cliffs Natural Resources, Inc., Freeport-McMoRan Copper & Gold Inc., Pioneer Natural Resources Co., and Potash Corporation of Saskatchewan Inc. The Corporation increased its holdings in Anadarko Petroleum, Chevron, Forest Oil, Royal Dutch Shell ADR, Southwestern Energy, and Spectra Energy. One position was eliminated from the Corporation's list of holdings with the sale of DuPont. The Corporation reduced its holdings in Devon Energy, EOG Resources, EQT Corp., Noble Energy, and XTO Energy.

  OTHER SUMMARY FINANCIAL INFORMATION
  -----------------------------------

                                                12/31/09       12/31/08
                                                --------       --------
  Unrealized appreciation                   $253,661,346   $151,455,732
  Net investment income                       $6,706,626     $9,651,706
  Net realized gain                          $24,709,496    $57,867,203

  Key Ratios
  ----------
  Net investment income to
    average net assets                            1.18%*           1.10%
  Expense ratio
    (to average net assets)                       0.96%*           0.51%
  Portfolio turnover                               14.35%         16.89%
  Net cash & short-term
    Investments to net assets                        3.8%          12.2%







* For 2009, net investment income and expenses to average net assets were 1.36% and 0.78%, respectively, after adjusting for non-recurring pension expenses.

  TEN LARGEST PORTFOLIO HOLDINGS (12/31/09)
  -----------------------------------------


                                                        % of Net Assets
                                                        ---------------

  Chevron
   Corp.                                                           11.1
  Exxon Mobil
   Corp.                                                           10.7
  Occidental
   Petroleum
   Corp.                                                            5.5
  Noble Corp.                                                       4.9
  Transocean
   Inc.                                                             3.9
  XTO Energy
   Inc.                                                             3.3
  Halliburton
   Co.                                                              3.2
  ConocoPhillips                                                    3.2
  Apache Corp.                                                      3.2
  Royal Dutch
   Shell plc
   ADR                                                              3.0
                                                                    ---
           Total                                                   52.0%







  SECTOR WEIGHTINGS (12/31/09)
  ----------------------------

                                                       % of Net Assets
                                                       ---------------

  Integrated                                                      32.3
  Exploration
   &
   Production                                                     21.7
  Services                                                        17.2
  Utilities                                                       16.6
  Basic
   Materials
   and Other                                                       8.4
  Short-Term
   Investments                                                     4.1







  ANNUALIZED ONE, FIVE AND TEN YEAR COMPARATIVE RETURNS
  -----------------------------------------------------

  Returns on net asset
   value
   (12/31/09)
                             1 Year          5 Year          10 Year
                             ------          ------          -------
  Petroleum & Resources                26.7%            8.8%          8.1%
  DJ U.S. Oil & Gas Index              17.3%           10.8%         10.4%
  DJ U.S. Basic Materials
   Index                               65.5%            6.0%          4.9%







Petroleum & Resources Corporation is a Baltimore-based closed-end investment company.  Its stock trades on the New York Stock Exchange under the ticker symbol PEO.

  For further information please contact:
  Lawrence L. Hooper, Jr., Vice President, General Counsel and Secretary
  410-752-5900 or 800-638-2479
  E-mail: 
  Website: http://www.peteres.com/



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DATASOURCE: Petroleum & Resources Corporation



CONTACT:  Lawrence L. Hooper, Jr., Vice President, General Counsel and

Secretary, [phone] or 1-800-638-2479, 



Web Site:  http://www.peteres.com/ 

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