Petroleum & Resources Corporation Declares Dividend and Reports Outperformance for the Six Months Ended June 30, 2007

BALTIMORE, July 12  /PRNewswire-FirstCall/ -- The Board of Directors of Petroleum & Resources Corporation today declared a dividend of $0.13 per share, payable September 1, 2007, to stockholders of record on August 14, 2007.

Performance

For the six months ended June 30th, the total return on Petroleum & Resources' net asset value, after adjusting for income dividends as well as capital gain distributions paid, was 17.9%. Comparable figures for the Dow Jones Oil and Gas Index and the Standard & Poor's Index of 500 Stocks were 17.4% and 7.0%, respectively. The total return on Petroleum & Resources' market value, after adjustment, was 16.3%.

For the twelve months ended June 30th, the total return on Petroleum & Resources' net asset value, after adjusting for income dividends as well as capital gain distributions paid, was 22.6%. Comparable figures for the Dow Jones Oil and Gas Index and the Standard & Poor's Index of 500 Stocks were 26.0% and 20.6%, respectively. The total return on Petroleum & Resources' market value, after adjustment, was 26.5%.

The net asset value of Petroleum & Resources at June 30, 2007, compared with the year earlier, is:

                                                    Net Asset Value
                                                  6/30/07        6/30/06
  Net Assets                                  $937,675,578   $824,478,584
  Shares Outstanding                            21,877,275     21,183,656
  Net Assets Per Share                             $42.86*         $38.92

  * After capital gain distributions of $0.10 per share paid in March 2007.

  The net capital gain realized through June 30, 2007, was $2.50 per share.



The Corporation repurchased 319,047 shares of its Common Stock during the six month period.

Securities Transactions

During the three months ended June 30, 2007, the Corporation added to its existing holdings in Bronco Drilling and Chevron.

Three issues were eliminated from the Corporation's holdings with the sales of BP plc ADR, Holly Corp., and Martin Marietta Materials, Inc. Reductions were made in the holdings of Questar, Air Products and Chemicals, Aqua America, BJ Services, and Valero Energy.

Petroleum & Resources Corporation is a Baltimore-based closed-end investment company traded on the New York Stock Exchange under the symbol PEO. The Semi-Annual Report is expected to be released on or about July 20, 2007.

  For further information please contact:
  Douglas G. Ober, Chairman, President & CEO
  Lawrence L. Hooper, Jr., Vice President, General Counsel and Secretary
  [phone] or [phone]
  email:     website: http://www.peteres.com/

DATASOURCE: Petroleum & Resources Corporation



CONTACT:  Douglas G. Ober, Chairman, President & CEO, or Lawrence L.

Hooper, Jr., Vice President, General Counsel and Secretary, [phone],

[phone],  



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

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