<PAGE> PAGE 1
000 B000000 12/31/95
000 C000000 0000216851
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PETROLEUM & RESOURCES CORPORATION
001 B000000 811-2736
001 C000000 4107525900
002 A000000 SEVEN ST. PAUL STREET, SUITE 1140
002 B000000 BALTIMORE
002 C000000 MD
002 D010000 21202
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
007 C012100 21
007 C012200 22
007 C012300 23
007 C012400 24
007 C012500 25
007 C012600 26
007 C012700 27
007 C012800 28
007 C012900 29
<PAGE> PAGE 2
007 C013000 30
007 C013100 31
007 C013200 32
007 C013300 33
007 C013400 34
007 C013500 35
007 C013600 36
007 C013700 37
007 C013800 38
007 C013900 39
007 C014000 40
007 C014100 41
007 C014200 42
007 C014300 43
007 C014400 44
007 C014500 45
007 C014600 46
007 C014700 47
007 C014800 48
007 C014900 49
007 C015000 50
011 C060004 \
015 B000001 C
015 B000004 C
018 000000 N
019 A000000 N
019 B000000 0
020 A000001 CS FIRST BOSTON
020 B000001 13-5659485
020 C000001 34
020 A000002 S.W. RYAN & CO., INC.
020 B000002 23-2509528
020 C000002 31
020 A000003 COUNTY NATWEST SECURITIES, USA
020 B000003 13-3312778
020 C000003 30
020 A000004 PAINE WEBBER, INC.
020 B000004 13-2638166
020 C000004 25
020 A000005 SALOMAN BROTHERS
020 B000005 13-3082694
020 C000005 19
020 A000006 PRUDENTIAL SECURITIES
020 B000006 22-2347336
020 C000006 19
020 A000007 MORGAN STANLEY & CO., INC.
020 B000007 13-2655998
020 C000007 16
020 A000008 WELLINGTON (H.G.) & C0., INC.
020 B000008 13-3216715
020 C000008 13
<PAGE> PAGE 3
020 A000009 GOLDMAN SACHS & CO.
020 B000009 13-5108880
020 C000009 12
020 A000010 HOWARD, WEIL, LABOUISSE, FRIEDRICHS, INC.
020 B000010 72-0696314
020 C000010 8
021 000000 235
022 A000001 M. STERNBURG & CO., INC.
022 B000001 06-1153426
022 C000001 88423
022 D000001 0
022 A000002 GENERAL ELECTRIC CAPITAL CORP.
022 B000002 13-1500700
022 C000002 48392
022 D000002 0
022 A000003 CHEVRON OIL FINANCE CO.
022 B000003 25-1215010
022 C000003 39367
022 D000003 0
022 A000004 FORD MOTOR CREDIT CORP.
022 B000004 38-1612444
022 C000004 35635
022 D000004 0
022 A000005 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000005 13-5674085
022 C000005 11925
022 D000005 47
022 A000006 WACHOVIA BANK OF NORTH CAROLINA, N.A.
022 B000006 56-0927594
022 C000006 8600
022 D000006 0
022 A000007 MORGAN (J.P.) SECURITIES, INC.
022 B000007 13-3224016
022 C000007 7814
022 D000007 0
022 A000008 SALOMON BROTHERS
022 B000008 13-3082694
022 C000008 2434
022 D000008 2876
022 A000009 NATIONSBANK OF NORTH CAROLINA
022 B000009 56-0927416
022 C000009 5000
022 D000009 0
022 A000010 CS FIRST BOSTON
022 B000010 13-5659485
022 C000010 3288
022 D000010 1481
023 C000000 263640
023 D000000 4496
024 000000 N
025 D000001 0
<PAGE> PAGE 4
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 N
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
<PAGE> PAGE 5
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 N
048 000000 0.000
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
<PAGE> PAGE 6
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 N
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
<PAGE> PAGE 7
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 54829
071 B000000 69784
071 C000000 345806
071 D000000 16
072 A000000 12
072 B000000 2332
072 C000000 10364
072 D000000 0
072 E000000 0
072 F000000 0
072 G000000 0
072 H000000 1211
072 I000000 99
072 J000000 39
072 K000000 40
072 L000000 77
072 M000000 147
072 N000000 28
072 O000000 36
072 P000000 0
072 Q000000 0
072 R000000 43
072 S000000 38
072 T000000 0
072 U000000 0
072 V000000 51
072 W000000 295
072 X000000 2104
072 Y000000 0
072 Z000000 10592
072AA000000 15060
072BB000000 0
072CC010000 59383
072CC020000 0
072DD010000 10771
072DD020000 0
072EE000000 15104
073 A010000 0.8700
073 A020000 0.0000
073 B000000 1.2200
073 C000000 0.0000
074 A000000 45
074 B000000 0
074 C000000 19621
074 D000000 13965
074 E000000 33466
074 F000000 331986
074 G000000 0
<PAGE> PAGE 8
074 H000000 0
074 I000000 0
074 J000000 2172
074 K000000 0
074 L000000 1035
074 M000000 971
074 N000000 403261
074 O000000 421
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 293
074 R040000 1142
074 S000000 0
074 T000000 401405
074 U010000 12739
074 U020000 0
074 V010000 31.51
074 V020000 0.00
074 W000000 0.0000
074 X000000 9364
074 Y000000 6260
075 A000000 0
075 B000000 366068
076 000000 28.25
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 FEDERAL INSURANCE CO.
080 C000000 1750
081 A000000 Y
081 B000000 1
082 A000000 Y
082 B000000 5
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
<PAGE> PAGE 9
086 F020000 0
SIGNATURE J. G. WHITNEY
TITLE VICE PRESIDENT & SECRETARY
SIGNATURE MAUREEN A. JONES
TITLE TREASURER
REPORT OF INDEPENDENT ACCOUNTANTS
-------
To the Board of Directors of
Petroleum & Resources
Corporation:
In planning and performing our audit of the financial
statements and financial highlights of Petroleum & Resources Corporation for the
year ended December 31, 1995, we considered its internal control structure,
including procedures for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial
statements and financial highlights and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control structure.
The management of Petroleum & Resources Corporation is
responsible for establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or disposition
and that transactions are executed in accordance with management's authorization
and recorded properly to permit preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is subject to
the risk that it may become inadequate because of changes in conditions or that
the effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure that might be
material weaknesses under standards established by the American Institute of
Certified Public Accountants. A material weakness is a condition in which the
design or operation of the specific internal control structure elements does not
reduce to a relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial statements and
financial highlights being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions.
However, we noted no matters involving the internal control structure, including
procedures for safeguarding securities, that we consider to be material
weaknesses, as defined above, as of December 31, 1995.
This report is intended solely for the information and use of
the Board of Directors and management of Petroleum & Resources Corporation and
the Securities and Exchange Commission.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
January 9, 1996
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
-------
To the Board of Directors and Stockholders of
Petroleum & Resources Corporation:
We have audited the accompanying statement of assets and liabilities of
Petroleum & Resources Corporation, including the schedule of investments, as of
December 31, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Corporation's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Petroleum & Resources Corporation as of December 31, 1995, and the results of
its operations, the changes in its net assets, and financial highlights for each
of the respective periods stated in the first paragraph, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
January 9, 1996
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> Petroleum & Resources
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 278,982
<INVESTMENTS-AT-VALUE> 399,038
<RECEIVABLES> 3,207
<ASSETS-OTHER> 971
<OTHER-ITEMS-ASSETS> 45
<TOTAL-ASSETS> 403,261
<PAYABLE-FOR-SECURITIES> 421
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,435
<TOTAL-LIABILITIES> 1,856
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 15,104
<SHARES-COMMON-STOCK> 12,739
<SHARES-COMMON-PRIOR> 12,380
<ACCUMULATED-NII-CURRENT> 10,593
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 15,104
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 119,875
<NET-ASSETS> 401,405
<DIVIDEND-INCOME> 10,364
<INTEREST-INCOME> 2,332
<OTHER-INCOME> 0
<EXPENSES-NET> 2,104
<NET-INVESTMENT-INCOME> 10,592
<REALIZED-GAINS-CURRENT> 15,060
<APPREC-INCREASE-CURRENT> 59,383
<NET-CHANGE-FROM-OPS> 85,036
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 10,771
<DISTRIBUTIONS-OF-GAINS> 15,104
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 359
<NET-CHANGE-IN-ASSETS> 69,126
<ACCUMULATED-NII-PRIOR> 400
<ACCUMULATED-GAINS-PRIOR> 491
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 366,068
<PER-SHARE-NAV-BEGIN> 26.84
<PER-SHARE-NII> 0.86
<PER-SHARE-GAIN-APPREC> 5.90
<PER-SHARE-DIVIDEND> 0.87
<PER-SHARE-DISTRIBUTIONS> 1.22
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 31.51
<EXPENSE-RATIO> 0.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
