PETRA ENERGY & ALLIANCE INVESTMENT BANK SIGN UNDERWRITING AGREEMENT

The Signing Paves the Way for the Scheduled Listing of Petra Energy shares on the Main Board of Bursa Malaysia in July '07 (or Third Quarter of the Year)

Kuala Lumpur, 25 May 2007 – Petra Perdana Berhad's ("Petra Perdana") wholly-owned subsidiary, Petra Energy Berhad ("Petra Energy"), today signed the underwriting agreement with Alliance Investment Bank Bhd ("Alliance Investment Bank") as its adviser, underwriter and placement agent for the public issue of 46,000,000 new ordinary shares in conjunction with the listing of Petra Energy on the Main Board of Bursa Malaysia.

The executive chairman of Petra Energy, Tengku Dato Ibrahim Petra signed on behalf of the company, while Alliance Investment Bank was represented by its group chief executive officer, Bridget Lai. Others present at the signing ceremony included representatives of both organisations and the directors of Petra Energy.

"The underwriting paves the scheduled listing of Petra Energy shares on the local bourse. We are pleased with the progress being made and listing of the company's shares is scheduled for July.

"The continued growth and development of the domestic and regional markets in the upstream oil and gas industry, coupled by the expansion of capital markets and favourable performance of the local indices would augur well when the company makes its debut on the local bourse in July.

"We are confident that the listing of the company will not only enable it to leverage on the growing market opportunities in the brown field sector of the industry but also enable Petra Energy to seek new avenues of funding to fuel its continued expansion and growth in the sector.

"This will contribute strongly to the company's already healthy bottomline and further enhance shareholder value," said Tengku Dato' Ibrahim.

Lai says, "Alliance Investment Bank is proud to be involved in the listing of Petra on the local bourse. As an integrated investment bank, we are able to capitalise on our end to end business platform - from origination, execution to distribution thus providing a holistic transaction approach. The listing exercise for Petra is the culmination of hard work, dedication and an excellent working relationship between both teams from Petra and Alliance Investment Bank."

Under the terms of the underwriting agreement, Alliance Investment Bank agrees to underwrite the Public Issue of 46,000,000 new ordinary shares of RM0.50 each in Petra Energy at an issues price of RM2.62 per ordinary share payable in full and comprising:

• 6,535,000 New Ordinary shares of RM0.50 each in Petra Energy made available for application by the Malaysian public;
• 6,765,000 New Ordinary shares of RM0.50 each in Petra Energy by way of a renounceable restricted issue to the shareholders of Petra Perdana on the basis of one (1) new Ordinary share of RM0.50 each in Petra Energy for every 40 existing Ordinary shares of RM0.50 each in Petra Perdana held by the shareholders of Petra Perdana as at a time and date to be determined;
• 26,200,000 New Ordinary shares of RM0.50 each in Petra Energy reserved for placement to identified Bumiputera investors approved by the Ministry of of International Trade and Industry;
• 6,500,000 New Ordinary shares of RM0.50 each in Petra Energy reserved for placement to identified investors; and

Bonus issue of 65,000,000 New Ordinary shares of RM0.50 each in Petra Energy to be credited as fully paid-up to the shareholders of Petra Energy on the basis of one (1) New Ordinary share of RM0.50 each in Petra Energy for every two (2) existing ordinary shares of RM0.50 each held in Petra Energy after the Public Issue.

The proposed listing, which has been approved by all relevant authorities including the shareholders of Petra Perdana, is expected to generate proceeds totalling RM120.52 million.

The proceeds would be utilised for Petra Energy working capital (RM16.32 million; Repayment of amount owing to Holding Group RM100.00 million) and Listing expenses (RM4.20 million). This would serve to improve the Group's gearing, resulting in a healthier balance sheet and enabling the Group's continued expansion into the Brown Field market.

Petra Energy is an investment holding company, which owns 100% equity stake in Petra Resources Sdn Bhd and Petra Fabricators Sdn Bhd ("Petra Fabricators"). Petra Fabricators in turn owns 100% equity stake in Petra Boilers Sdn Bhd.

Petra Energy's core business activities in integrated brown field services include operations & maintenance, oil field optimization, retrofits, domestic vessels recharter, design and fabrication of process equipment and packaging and supply of engineered equipment for the oil and gas industry.