Petroleum & Resources Corporation Declares Dividend and Reports Strong Performance for the First Half of 2008

BALTIMORE, July 10  /PRNewswire-FirstCall/ -- The Board of Directors of Petroleum & Resources Corporation today declared a dividend of $0.13 per share, payable September 1, 2008, to stockholders of record on August 12, 2008, and announced the Fund's outstanding performance for the first half of 2008.

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 17.7%. Comparable figures for the Dow Jones Oil and Gas Index and the Standard & Poor's Index of 500 Stocks were 10.1% and -11.6%, respectively. The total return on Petroleum & Resources' market value, after adjustment, was 13.5%.

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 30.7%. Comparable figures for the Dow Jones Oil and Gas Index and the Standard & Poor's Index of 500 Stocks were 24.7% and -13.1%, respectively. The total return on Petroleum & Resources' market value, after adjustment, was 25.8%.

The net asset value of Petroleum & Resources at June 30, 2008, compared with the year earlier, is:

                                            Net Asset Value
                                     6/30/08             6/30/07
  Net Assets                         $1,137,884,349      $937,675,578
  Shares Outstanding                 22,640,707          21,877,275
  Net Assets Per Share               $50.26*             $42.86


  *After capital gain distributions of $0.09 per share paid in March 2008.

  The net capital gain realized through June 30, 2008, was $1.70 per share.


The Corporation repurchased 141,500 shares of its Common Stock during the six month period.

Securities Transactions

During the three months ended June 30, 2008, two new names were added to the investment list of the Corporation with the purchases of Complete Production Services, Inc. and Halliburton Co.; National Oilwell Varco, Inc. was also added via merger with Grant Prideco.  The Corporation added to its existing holdings in Chevron, Massey Energy, and Schlumberger.

Seven issues were eliminated from the Corporation's holdings with the sales of AGL Resources, Aqua America, BJ Services, Duke Energy, ENSCO International, General Electric, and Valero Energy; Grant Prideco was eliminated via its merger with National Oilwell Varco. Reductions were made in the holdings of Devon Energy, Energen, EOG Resources, Equitable Resources, and Rohm & Haas.

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 18, 2008.

  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] or

[phone], 



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

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