BALTIMORE, Jan. 15 /PRNewswire-FirstCall/ -- Petroleum & Resources Corporation (NYSE: PEO) announces the Corporation's performance for 2008.

2008 INVESTMENT RETURNS

For the twelve months ended December 31, 2008, the total return on Petroleum & Resources' net asset value, with dividends and capital gains reinvested, was (39.8)%. Comparable figures for the S&P 500 Index and Dow Jones Oil & Gas Index were (37.0)% and (35.8)%, respectively. The total return on Petroleum & Resources' market value was (42.2)%.

The annual rate of distribution to stockholders (the total dividends and capital gains distributed during the year divided by the average daily market price of the Corporation's stock) was 8.88%.

NET ASSET VALUE ANNOUNCED

The net asset value of Petroleum & Resources at the end of 2008 is

compared with the prior year in the following table: 


                                          12/31/08               12/31/07
           Net assets                  $538,936,942           $978,919,829
           Shares outstanding            23,958,656             22,768,250
           Net asset value per share         $22.49                 $42.99

During the year, the Corporation repurchased 381,979 shares of its common stock.

SECURITIES TRANSACTIONS DURING THE FOURTH QUARTER

During the fourth quarter, the Corporation increased its holdings in Noble Corp. and Transocean. Four positions were eliminated from the Corporation's list of holdings with the sales of Air Products & Chemicals, Marathon Oil, Murphy Oil, and Suncor Energy. The Corporation reduced its holdings in ConocoPhillips, CONSOL Energy, Exxon Mobil, Hercules Offshore, Massey Energy, Schlumberger, and Total S.A.

OTHER SUMMARY FINANCIAL INFORMATION


                                          12/31/08            12/31/07
           Unrealized appreciation      $151,455,732       $606,901,290
           Net investment income          $9,651,706        $10,070,758
           Net realized gain             $57,867,203        $82,692,239

           Key Ratios
           Net investment income to
            average assets                     1.10%              1.12%
           Expense ratio                       0.51%              0.54%
           Portfolio turnover                 16.89%              7.36%
           Cash to net assets                  12.8%               3.4%

TEN LARGEST PORTFOLIO HOLDINGS (12/31/08)


                                                          % of Net Assets

                  Exxon Mobil                                  13.2
                  Chevron                                      12.5
                  Occidental Petroleum                          4.5
                  ConocoPhillips                                4.0
                  XTO Energy                                    3.2
                  Noble Corp.                                   3.2
                  Noble Energy                                  3.1
                  Devon Energy                                  3.0
                  Apache                                        2.8
                  Transocean                                    2.7
                                                               52.2%

SECTOR WEIGHTINGS (12/31/08)


                                                         % of Net Assets

                  Integrated                                  36.4%
                  Exploration & Production                    19.2%
                  Services                                    16.2%
                  Utilities                                   12.8%
                  Short-Term Investments                      12.8%
                  Basic Industries                             3.2%

ANNUALIZED ONE, FIVE AND TEN YEAR COMPARATIVE RETURNS


         Returns on net asset value (12/31/08)
                                               1 Year     5 Year     10 Year
         Petroleum & Resources                 -39.8%       8.2%        7.9%
         D J Oil & Gas Index                   -35.8%      13.6%       10.7%
         Natural Resources Mutual Funds        -47.8%       8.4%        9.3%

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:

                      Douglas G. Ober, Chairman, CEO, and President
                     Lawrence L. Hooper, Jr., Vice President, General
                                Counsel and Secretary
                             410-752-5900 or 800-638-2479

                              E-mail: contact@peteres.com
                               Website: www.peteres.com

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SOURCE Petroleum & Resources Corporation