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<SEC-DOCUMENT>0000216851-06-000025.txt : 20060427
<SEC-HEADER>0000216851-06-000025.hdr.sgml : 20060427
<ACCEPTANCE-DATETIME>20060427165555
ACCESSION NUMBER:		0000216851-06-000025
CONFORMED SUBMISSION TYPE:	N-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060331
FILED AS OF DATE:		20060427
DATE AS OF CHANGE:		20060427
EFFECTIVENESS DATE:		20060427

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PETROLEUM & RESOURCES CORP
		CENTRAL INDEX KEY:			0000216851
		IRS NUMBER:				135506797
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-Q
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-02736
		FILM NUMBER:		06785946

	BUSINESS ADDRESS:	
		STREET 1:		SEVEN ST PAUL ST
		STREET 2:		STE 1140
		CITY:			BALTIMORE
		STATE:			MD
		ZIP:			21202
		BUSINESS PHONE:		4107525900

	MAIL ADDRESS:	
		STREET 1:		7 ST PAUL STREET
		STREET 2:		STE 1140
		CITY:			BALTIMORE
		STATE:			MD
		ZIP:			21202
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-Q
<SEQUENCE>1
<FILENAME>peonq03312006.txt
<TEXT>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-Q

                   QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
                    REGISTERED MANAGEMENT INVESTMENT COMPANY

                 Investment Company Act file number: 811-02736
                 ---------------------------------------------

                       PETROLEUM & RESOURCES CORPORATION

- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)

           7 Saint Paul Street, Suite 1140, Baltimore, Maryland 21202
- --------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)

                            Lawrence L. Hooper, Jr.
                      Petroleum & Resources Corporation
                             7 Saint Paul Street
                                 Suite 1140
                           Baltimore, Maryland  21202


Registrant's telephone number, including area code: 410-752-5900

Date of fiscal year end:  December 31, 2006

Date of reporting period: March 31, 2006


<PAGE>

Item 1:  SCHEDULE OF INVESTMENTS.


                            SCHEDULE OF INVESTMENTS

- --------------------------------------------------------------------------------

                                March 31, 2006
                                  (unaudited)

<TABLE>
<CAPTION>
                                   Shares    Value (A)
- -                                 --------- ------------
<S>                               <C>       <C>
Stocks And Convertible Securities -- 98.2%

  Energy -- 86.8%
   Internationals -- 22.7%
   BP plc ADR                       600,000 $ 41,364,000
   Chevron Corp.                    635,000   36,810,950
   Exxon Mobil Corp.              1,140,000   69,380,400
   Royal Dutch Shell plc ADR        275,000   17,121,500
   Total S.A. ADR                   120,000   15,807,600
                                            ------------
                                             180,484,450
                                            ------------
   Domestics -- 13.9%
   Amerada Hess Corp.                65,000    9,256,000
   ConocoPhillips                   510,000   32,206,500
   Holly Corp.                      210,000   15,565,200
   Kerr-McGee Corp.                 107,647   10,278,136
   Marathon Oil Co.                 110,000    8,378,700
   Murphy Oil Corp.                 250,000   12,455,000
   Valero Energy Corp.              240,000   14,347,200
   Western Refining, Inc.           350,000    7,567,000
                                            ------------
                                             110,053,736
                                            ------------
   Producers -- 16.5%
   Apache Corp.                     165,000   10,809,150
   Burlington Resources Inc.         65,000    5,974,149
   Devon Energy Corp.               340,000   20,797,800
   EOG Resources, Inc. (B)          320,000   23,040,000
   Newfield Exploration Co. (C)     175,000    7,332,500
   Noble Energy, Inc.               430,000   18,885,600
   Occidental Petroleum Corp.       200,000   18,530,000
   Pioneer Natural
    Resources Co.                   175,000    7,743,750
   XTO Energy Inc.                  400,000   17,428,000
                                            ------------
                                             130,540,949
                                            ------------
   Distributors -- 11.4%
   AGL Resources Inc.               170,000    6,128,500
   Duke Energy Corp.                217,624    6,343,740
   Energen Corp.                    400,000   14,000,000
   Equitable Resources Inc.         450,000   16,429,500
   MDU Resources Group, Inc.        250,000    8,362,500
   National Fuel Gas Co.            200,000    6,544,000
   New Jersey Resources Corp.       200,000    9,050,000
   Questar Corp.                    200,000   14,010,000
   Williams Companies, Inc.         450,000    9,625,500
                                            ------------
                                              90,493,740
                                            ------------
</TABLE>
<TABLE>
<CAPTION>
                                        Shares
                                       or Units  Value (A)
- -                                      -------- ------------
<S>                                    <C>      <C>

   Services -- 22.3%
   Baker Hughes, Inc.                  130,000  $  8,892,000
   BJ Services Co.                     740,000    25,604,000
   GlobalSantaFe Corp.                 290,000    17,617,500
   Grant Prideco Inc. (C)              308,000    13,194,720
   Hercules Offshore, Inc.             110,000     3,741,100
   Nabors Industries Ltd. (C)          260,000    18,610,800
   Noble Corp.                         185,000    15,003,500
   Precision Drilling Trust (B)        300,000     9,702,000
   Schlumberger Ltd.                   280,000    35,439,600
   TODCO (C)                           175,000     6,896,750
   Weatherford International,
    Ltd. (C)                           493,560    22,580,370
                                                ------------
                                                 177,282,340
                                                ------------
  Basic Industries -- 11.4%
   Basic Materials & Other -- 10.9%
   Air Products and Chemicals, Inc.    125,000     8,398,750
   Aqua America, Inc.                  380,000    10,571,600
   Arch Coal Inc.                      200,000    15,188,000
   Consol Energy Inc.                  160,000    11,865,600
   du Pont (E.I.) de Nemours and Co.   157,500     6,648,075
   Florida Rock Industries Inc.         75,000     4,216,500
   General Electric Co.                454,800    15,817,944
   Martin Marietta Materials, Inc.      30,000     3,210,900
   Rohm & Haas Co.                     200,000     9,774,000
   Tronox Inc. (C)                      21,705       368,768
                                                ------------
                                                  86,060,137
                                                ------------
   Paper & Forest Products -- 0.5%
   Smurfit-Stone Container Corp. (C)   300,000     4,071,000
                                                ------------
Total Stocks And Convertible Securities
 (Cost $329,624,727) (D)                        $778,986,352
                                                ------------
</TABLE>

                                                                             9

                      SCHEDULE OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------

                                March 31, 2006
                                  (unaudited)


<TABLE>
<CAPTION>

                              Prin. Amt.    Value (A)
- -                             -----------  -----------
<S>                           <C>          <C>
Short-Term Investments -- 1.7%

   U.S. Government Obligations -- 1.7%
   U.S. Treasury Bills,
    4.40%, due 5/18/06        $13,500,000  $13,422,391
                                           -----------
   Time Deposit -- 0.0%
   Citibank, N.A., 4.15%,
    due 4/3/06                                 236,315
                                           -----------
Total Short-Term Investments
 (Cost--$13,658,706)                       $13,658,706
                                           -----------
</TABLE>
<TABLE>
<CAPTION>

                                                     Value (A)
- -                                                  ------------
<S>                                                <C>
Securities Lending Collateral -- 1.7%
   Brown Brothers Investment
    Trust, 4.67%, due 4/3/06                       $ 13,801,464
                                                   ------------
Total Securities Lending
 Collateral (Cost--$13,801,464)                      13,801,464
                                                   ------------
Total Investments -- 101.6%
 (Cost--$357,084,897)                               806,446,522
  Cash, receivables, prepaid
   expenses and other
   assets, less liabilities -- (1.6)%               (12,887,160)
                                                   ------------
Net Assets -- 100.0%                               $793,559,362
                                                   ============
</TABLE>
- --------------------------------------------------------------------------------
Notes:
(A)See note 1 to financial statements. Securities are listed on the New York
   Stock Exchange, the American Stock Exchange, or the NASDAQ.
(B)Some or all of these securities are on loan. See note 8 to financial
   statements.
(C)Presently non-dividend paying.
(D)The aggregate market value of stocks held in escrow at March 31, 2006
   covering open call option contracts written was $16,686,831. In addition,
   the aggregate market value of securities segregated by the Corporation's
   custodian required to collateralize open put option contracts written was
   $12,827,500.

10

                   SCHEDULE OF OUTSTANDING OPTION CONTRACTS

- --------------------------------------------------------------------------------

                                March 31, 2006
                                  (unaudited)



<TABLE>
<CAPTION>
 Contracts                                             Contract
(100 shares                                  Strike    Expiration  Appreciation/
   each)                Security              Price     Date       (Depreciation)
- ---------------------------------------------------------------------------------
<C>         <S>                              <C> <C>   <C>   <C>   <C>

                       COVERED CALLS
      59    Air Products and Chemicals, Inc. $    70   Sep   06       $ (6,962)
     100    Apache Corp.....................      75   Apr   06         13,700
     100    Apache Corp.....................      85   Jul   06          9,700
     150    Aqua America, Inc...............      30   Jun   06          4,959
     100    Arch Coal Inc...................      90   Jul   06          6,199
     200    ConocoPhillips..................      75   May   06         18,399
     150    Consol Energy Inc...............      90   Oct   06        (25,700)
     100    EOG Resources, Inc..............      90   Apr   06         10,699
      50    Kerr-McGee Corp.................      100  Apr   06          5,599
     100    Kerr-McGee Corp.................      105  Jul   06         (3,301)
     100    Murphy Oil Corp.................      50   Apr   06          2,200
     100    Murphy Oil Corp.................      55   Jul   06           (800)
     100    Newfield Exploration Co.........      45   Jun   06         (7,800)
     200    Newfield Exploration Co.........      50   Jun   06          4,975
     200    Newfield Exploration Co.........      50   Sep   06        (14,134)
     100    Pioneer Natural Resources Co....      45   Jun   06        (17,800)
     100    Pioneer Natural Resources Co....      50   Jun   06           (800)
      20    Total S.A.......................      155  May   06          3,840
     250    Total S.A.......................      150  Aug   06         (5,750)
     100    XTO Energy Inc..................      45   May   06         (3,300)
     100    XTO Energy Inc..................      45   Aug   06        (10,800)
     100    XTO Energy Inc..................      50   Aug   06         (3,800)
     100    XTO Energy Inc..................      55   Aug   06          8,700
   -----                                                              --------
   2,679                                                               (11,977)
   -----                                                              --------

                    COLLATERALIZED PUTS
     250    Arch Coal Inc...................      60   Jul   06         12,999
     100    Baker Hughes, Inc...............      55   Jul   06          7,699
      75    Baker Hughes, Inc...............      60   Jul   06         (2,850)
     250    Exxon Mobil Corp................     52.50 Apr   06         22,999
     150    Exxon Mobil Corp................      50   Jul   06         13,799
     100    Florida Rock Industries Inc.....      50   Jun   06          1,199
     100    Florida Rock Industries Inc.....      45   Sep   06         (2,300)
     100    Grant Prideco Inc...............      40   Apr   06          8,699
     100    Grant Prideco Inc...............      35   Jul   06          4,199
     100    Marathon Oil Co.................      65   Apr   06         10,699
      65    Marathon Oil Co.................      70   May   06           (845)
     200    Marathon Oil Co.................      60   Jul   06         19,399
      75    Marathon Oil Co.................      65   Jul   06         10,649
     100    Marathon Oil Co.................      55   Oct   06          5,699
     100    Martin Marietta Materials, Inc..      65   Apr   06         22,445
     150    Noble Corp......................      65   Jun   06         13,484
      70    TODCO...........................      30   Jun   06          5,039
     150    Valero Energy Corp..............      45   Jun   06         11,099
     150    Valero Energy Corp..............     47.50 Jun   06          7,049
   -----                                                              --------
   2,385                                                               171,160
   -----                                                              --------
                                                                      $159,183
                                                                      ========
</TABLE>

12


        (SELECTED) NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------

Petroleum  &  Resources  Corporation  (the  Corporation)  is
registered under the Investment Company Act of 1940 as a non-
diversified investment company. The Corporation's investment
objectives  as well as the nature and risk of its investment
transactions are set forth in the Corporation's registration
statement.

Security  Valuation-Investments  in  securities  traded   on
national  security exchanges are valued at the last reported
sale  price  on  the day of valuation. Over-the-counter  and
listed  securities for which a sale price is  not  available
are   valued  at  the  last  quoted  bid  price.  Short-term
investments  (excluding  purchased options)  are  valued  at
amortized cost. Purchased and written options are valued  at
the last quoted asked price.

For  federal  income  tax purposes, the identified  cost  of
Securities  at  March  31,  2006 was  $357,055,074  and  net
unrealized  appreciation aggregated $449,391,448,  of  which
the  related  gross unrealized appreciation and depreciation
were $452,682,645 and $3,291,197 respectively.

8. PORTFOLIO SECURITIES LOANED
The  Corporation  makes  loans  of  securities  to  brokers,
secured  by  cash deposits, U.S. Government  securities,  or
bank  letters  of  credit.   The  Corporation  accounts  for
securities  lending  transactions as secured  financing  and
receives  compensation in the form  of  fees  or  retains  a
portion  of interest on the investment of any cash  received
as  collateral.  The Corporation also continues  to  receive
interest  or dividends on the securities loaned.  The  loans
are  secured at all times by collateral of at least 102%  of
the  fair  value  of  the  securities  loaned  plus  accrued
interest.   Gain or loss in the fair value of the securities
loaned  that may occur during the term of the loan  will  be
for  the account of the Corporation.  At March 31, 2006, the
Corporation had securities on loan of $13,483,638  and  held
collateral of $13,801,464, consisting of an investment trust
fund   which   may  invest  in  money  market   instruments,
commercial  paper,  repurchase  agreements,  U.S.   Treasury
Bills, and U.S. agency obligations.


Item 2.  CONTROLS AND PROCEDURES.

Conclusions  of principal officers concerning  controls  and
procedures:

(a)  As of April 21, 2006, an evaluation was performed under
the  supervision and with the participation of the  officers
of  Petroleum  &  Resources Corporation (the "Corporation"),
including   the  principal  executive  officer   ("PEO") and
principal financial officer ("PFO"), of the effectiveness of
the  Corporation's disclosure controls and procedures. Based
on  that  evaluation, the Corporation's officers,  including
the  PEO  and PFO, concluded that, as of April 21, 2006, the
Corporation's   disclosure  controls  and  procedures   were
reasonably  designed so as to ensure: (1)  that  information
required to be disclosed by the Corporation on Form  N-Q  is
recorded, processed, summarized and reported within the time
periods  specified by the rules and forms of the  Securities
and  Exchange Commission; and (2) that material  information
relating to the Corporation is made known to the PEO and PFO
as  appropriate to allow timely decisions regarding required
disclosure.

(b)    There  have  been  no  significant  changes  in   the
Corporation's internal control over financial reporting  (as
defined  in Rule 30 a-3(d) under the Investment Company  Act
of  1940  (17  CFR  270.30a-3(d)) that occurred  during  the
Corporation's  last  fiscal  quarter  that  have  materially
affected, or are reasonably likely to materially affect, the
Corporation's internal control over financial reporting.


Item 3.  EXHIBITS.

The  certifications of the principal executive  officer  and
principal financial officer pursuant to Rule 30 a-2(a) under
the  Investment Company Act of 1940 are attached  hereto  as
Form N-Q Certifications.



SIGNATURES

Pursuant to the requirements of the Securities Exchange  Act
of  1934  and  the  Investment  Company  Act  of  1940,  the
registrant has duly caused this report to be signed  on  its
behalf by the undersigned, thereunto duly authorized.

PETROLEUM & RESOURCES CORPORATION

BY: /s/ Douglas G. Ober
        -----------------------
        Douglas G. Ober
        Chief Executive Officer

Date:   April 27, 2006


Pursuant to the requirements of the Securities Exchange  Act
of  1934 and the Investment Company Act of 1940, this report
has been signed below by the following persons on behalf  of
the  registrant  and  in the capacities  and  on  the  dates
indicated.

BY: /s/ Douglas G. Ober
        -----------------------
        Douglas G. Ober
        Chief Executive Officer
	(Principal Executive Officer)

Date:   April 27, 2006


BY: /s/ Maureen A. Jones
        -----------------------
        Maureen A. Jones
        Vice President, Chief Financial Officer and Treasurer
	(Principal Financial Officer)

Date:   April 27, 2006
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>peonqcert03312006.txt
<TEXT>
FORM N-Q CERTIFICATIONS


I, Douglas G. Ober, certify that:

1.   I   have  reviewed this report on Form N-Q of Petroleum
& Resources Corporation;

2.  Based on my knowledge, this report does not contain  any
untrue  statement  of a material  fact or omit  to  state  a
material  fact  necessary to make the  statements  made,  in
light of the circumstances under which such statements  were
made,  not misleading with respect to the period covered  by
this report;

3.  Based  on  my  knowledge, the schedules  of  investments
included  in  this  report fairly present  in  all  material
respects the investments of the registrant as of the end  of
the fiscal quarter for which the report is filed;

4.  The registrant's other certifying officer(s) and  I  are
responsible  for  establishing  and  maintaining  disclosure
controls  and procedures (as defined in Rule 30a-3(c)  under
the  Investment  Company Act of 1940) and  internal  control
over  financial reporting (as defined in Rule 30a-3(d) under
the  Investment Company Act of 1940) for the registrant  and
have:

(a)  Designed  such disclosure controls and  procedures,  or
caused  such  disclosure  controls  and  procedures  to   be
designed  under  our  supervision, to ensure  that  material
information  relating  to  the  registrant,  including   its
consolidated  subsidiaries, is made known to  us  by  others
within  those  entities, particularly during the  period  in
which this report is being prepared;

(b) Designed such internal control over financial reporting,
or  caused such internal control over financial reporting to
be  designed  under  our supervision, to provide  reasonable
assurance  regarding the reliability of financial  reporting
and  the  preparation of financial statements  for  external
purposes  in  accordance with generally accepted  accounting
principles;

(c)   Evaluated   the  effectiveness  of  the   registrant's
disclosure  controls and procedures and  presented  in  this
report  our  conclusions  about  the  effectiveness  of  the
disclosure controls and procedures, as of a date  within  90
days  prior to the filing date of this report, based on such
evaluation; and

(d)  Disclosed in this report any change in the registrant's
internal  control  over  financial reporting  that  occurred
during the registrant's most recent fiscal quarter that  has
materially  affected, or is reasonably likely to  materially
affect,  the  registrant's internal control  over  financial
reporting; and

5.  The registrant's other certifying officer(s) and I  have
disclosed  to  the  registrant's  auditors  and  the   audit
committee of the registrant's board of directors (or persons
performing the equivalent functions):

(a) All significant deficiencies and material weaknesses  in
the  design or operation of internal control over  financial
reporting  which  are reasonably likely to adversely  affect
the  registrant's ability to record, process, summarize, and
report financial information; and

(b)  Any  fraud,  whether  or not  material,  that  involves
management or other employees who have a significant role in
the registrant's internal control over financial reporting.


BY: /s/ Douglas G. Ober
        -----------------------
        Douglas G. Ober
        Chief Executive Officer
	(Principal Executive Officer)

Date:   April 27, 2006



I, Maureen A. Jones, certify that:

1.   I   have  reviewed this report on Form N-Q of Petroleum
& Resources Corporation;

2.  Based on my knowledge, this report does not contain  any
untrue  statement  of a material fact  or omit  to  state  a
material  fact  necessary to make the  statements  made,  in
light of the circumstances under which such statements  were
made,  not misleading with respect to the period covered  by
this report;

3.  Based  on  my  knowledge, the schedules  of  investments
included  in  this  report fairly present  in  all  material
respects the investments of the registrant as of the end  of
the fiscal quarter for which the report is filed;

4.  The registrant's other certifying officer(s) and  I  are
responsible  for  establishing  and  maintaining  disclosure
controls  and procedures (as defined in Rule 30a-3(c)  under
the  Investment  Company Act of 1940) and  internal  control
over  financial reporting (as defined in Rule 30a-3(d) under
the  Investment Company Act of 1940) for the registrant  and
have:

(a)  Designed  such disclosure controls and  procedures,  or
caused  such  disclosure  controls  and  procedures  to   be
designed  under  our  supervision, to ensure  that  material
information  relating  to  the  registrant,  including   its
consolidated  subsidiaries, is made known to  us  by  others
within  those  entities, particularly during the  period  in
which this report is being prepared;

(b) Designed such internal control over financial reporting,
or  caused such internal control over financial reporting to
be  designed  under  our supervision, to provide  reasonable
assurance  regarding the reliability of financial  reporting
and  the  preparation of financial statements  for  external
purposes  in  accordance with generally accepted  accounting
principles;

(c)   Evaluated   the  effectiveness  of  the   registrant's
disclosure  controls and procedures and  presented  in  this
report  our  conclusions  about  the  effectiveness  of  the
disclosure controls and procedures, as of a date  within  90
days  prior to the filing date of this report, based on such
evaluation; and

(d)  Disclosed in this report any change in the registrant's
internal  control  over  financial reporting  that  occurred
during the registrant's most recent fiscal quarter that  has
materially  affected, or is reasonably likely to  materially
affect,  the  registrant's internal control  over  financial
reporting; and

5.  The registrant's other certifying officer(s) and I  have
disclosed  to  the  registrant's  auditors  and  the   audit
committee of the registrant's board of directors (or persons
performing the equivalent functions):

(a) All significant deficiencies and material weaknesses  in
the  design or operation of internal control over  financial
reporting  which  are reasonably likely to adversely  affect
the  registrant's ability to record, process, summarize, and
report financial information; and

(b)  Any  fraud,  whether  or not  material,  that  involves
management or other employees who have a significant role in
the registrant's internal control over financial reporting.


BY: /s/ Maureen A. Jones
        -----------------------
	Maureen A. Jones
        Vice President, Chief Financial Officer and Treasurer
	(Principal Financial Officer)

Date:   April 27, 2006
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
