BALTIMORE, Jan. 12, 2012 /PRNewswire/ -- Petroleum & Resources Corporation [PEO] announces the Corporation's performance for 2011.

2011 INVESTMENT RETURNS

For the twelve months ended December 31, 2011, the total return on Petroleum & Resources' net asset value, with dividends and capital gains reinvested, was 0.3%. The comparable figures for the Dow Jones U. S. Oil & Gas Index, the Dow Jones U. S. Basic Materials Index, and the Lipper Global Natural Resources Funds Index were 4.1%, -14.7%, and -16.4%, respectively. The total return on Petroleum & Resources' market value was -2.3%.

The annual distribution rate of dividends and capital gains paid to stockholders by the Corporation in 2011 was 7.1%, calculated by dividing the total dividends and capital gains distributed during the year by the average month-end market price of the Corporation's Common Stock.

NET ASSET VALUE ANNOUNCED

The net assets, shares outstanding, and net asset value per share of Petroleum & Resources at the end of 2011 compared with the prior year are:

                                  12/31/11     12/31/10
                                  --------     --------
    Net assets                $732,810,692 $761,735,503
    Shares outstanding          25,641,018   24,789,698
    Net asset value per share       $28.58       $30.73

SECURITIES TRANSACTIONS DURING THE FOURTH QUARTER

During the fourth quarter, the Corporation added two new names to its investment portfolio with the purchases of Molycorp, Inc. and Seadrill Ltd., and increased its holdings in Anadarko and Marathon Petroleum. One holding was eliminated from the investment list with the sale of Transocean Ltd., and the Corporation reduced its holdings in Dow Chemical, EQT, Halliburton, MDU Resources, National Fuel Gas, Newfield Exploration, Occidental Petroleum, Pioneer Natural Resources, Royal Dutch Shell, and Weatherford International.

OTHER SUMMARY FINANCIAL INFORMATION

                                                        12/31/11     12/31/10
                                                        --------     --------
    Unrealized appreciation                         $302,253,570 $352,104,389
    Net investment income                            $10,208,955   $8,486,334
    Net realized gain                                $39,332,517  $22,810,200

    Key Ratios
    ----------
    Net investment income to average net assets             1.29%        1.32%
    Expense ratio (to average net assets)                   0.56%        0.64%
    Portfolio turnover                                      16.4%        16.8%
    Net cash & short-term investments to net assets          0.0%         3.8%

TEN LARGEST EQUITY PORTFOLIO HOLDINGS (12/31/11)

                                         % of Net Assets
                                         ---------------
     Exxon Mobil Corp.                                 15.7
     Chevron Corp.                                     13.6
     Schlumberger Ltd.                                  5.4
     Occidental Petroleum Corp.                         4.1
     ConocoPhillips                                     3.5
     Noble Energy, Inc.                                 2.9
     Anadarko Petroleum Corp.                           2.9
     Royal Dutch Shell plc (Class A) ADR                2.7
     Freeport-McMoRan Copper & Gold Inc.                2.6
     National Oilwell Varco, Inc.                       2.3
                                                        ---
        Total                                          55.7%

SECTOR WEIGHTINGS (12/31/11)

                             % of Net Assets
                             ---------------
    Energy (78.3%):
    Exploration & Production               22.3
    Integrated Oil & Gas                   37.4
    Pipelines                               4.0
    Oil Services                           14.6
    Basic Materials (16.3%):
    Chemicals                              10.0
    Industrial Metals                       4.8
    Mining                                  1.5
    Utilities                               5.4
    Short-Term Investments                  0.5

ANNUALIZED ONE, THREE AND FIVE YEAR COMPARATIVE RETURNS

             Returns on net asset value
                     (12/31/11)
                                        1 Year        3 Year       5 Year
                                        ------        ------       ------
    Petroleum & Resources                        0.3%        15.4%        3.9%
    DJ U.S. Oil & Gas Index                      4.1%        13.5%        4.8%
    DJ U.S. Basic Materials Index              -14.7%        23.0%        4.0%
    Lipper Global Natural
     Resources Funds Index                     -16.4%        15.9%        0.7%

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.