Barryroe Appraisal well Operational Update

27^th February 2012
Embargo 7am

BARRYROE APPRAISAL WELL
OPERATIONAL UPDATE

• DRILLING ACTIVITIES SUCCESSFULLY COMPLETED 

  • PRIMARY BASAL SANDSTONE RESERVOIR PACKAGE ENCOUNTERED 

• EXTENSIVE FORMATION EVALUATION PROGRAMME CARRIED OUT 

• LOG AND CORE DATA CONFIRM PRIMARY BASAL SANDS AS BEING HYDROCARBON BEARING 

• OIL PRESSURE GRADIENT CONSISTENT WITH A C. 40^o API CRUDE     

• PRESSURE ANALYSIS INDICATES POTENTIAL FOR SIGNIFICANT HYDROCARBON COLUMN 

• OPERATIONS FOR WELL FLOW TESTING HAVE NOW COMMENCED 

  • PROGRAMME EXPECTED TO TAKE UP TO 10 DAYS TO COMPLETE 

Providence Resources P.l.c., ('Providence') the London (AIM) and Dublin (ESM) quoted oil and gas exploration and production company, is pleased to provide an operational update on its ongoing well operations in the North Celtic Sea Basin, offshore southern Ireland.  The 48/24-10z Barryroe appraisal well is located in c. 100 metre water depth, c. 50 kilometres offshore Ireland in Standard Exploration Licence (SEL) 1/11 in the North Celtic Sea Basin. Providence (80%) operates SEL 1/11 on behalf of its partner Lansdowne Oil & Gas plc (20%).

DRILLING ACTIVITIES SUCCESSFULLY COMPLETED
The 48/24-10z Barryroe appraisal well was drilled to a final total depth of 7,550' TVDSS and encountered the primary basal sandstone reservoir interval within the pre-drill depth prognosis. Reservoir development within this sand package is better than expected, with very good correlation of the overall sand packages with the offset 48/24-3 well. 

EXTENSIVE FORMATION EVALUATION PROGRAMME CARRIED OUT
Indications of hydrocarbons were seen whilst drilling, and the subsequent results from wire-line logging have confirmed the presence of 41ft. of net pay (averaging 15% porosity and 87% hydrocarbon saturation), with no indication of a hydrocarbon water contact. Pressure data over this interval have revealed the presence of both oil and gas bearing zones, with the oil gradient being consistent to that of a light c. 40^o API crude. A number of in-situ reservoir oil samples have been recovered and have been transported to the UK for further detailed laboratory analysis.
Preliminary pressure gradient analysis indicates that the basal sandstone could have the potential for an oil-water contact to be significantly down-dip from the current well location. It is notable that this basal  sandstone package can be regionally correlated to the previous wells drilled on the Barryroe licence area, including the 48/23-1 well which was drilled by a previous operator some 20 kilometres to the west of the 48/24-10z well.

OPERATIONS FOR WELL FLOW TESTING HAVE NOW COMMENCED
With drilling operations now completed, and with all the wire-line logging data and side walls cores now in hand, the operations phase now moves to the well flow testing programme. The forward plan is to set a production liner, prior to flow testing the well over a number of days. The overall programme is expected to take up to c. 10 days to complete.

Commenting on the announcement, Mr. John O'Sullivan, Technical Director said:  

"The confirmation of high quality light oil within a porous and potentially laterally extensive sandstone system is extremely encouraging.  The comprehensive newly acquired well data are already providing key insights into the hydrocarbon resource potential of this system. These sands, which appear to have an intact overlying pressure seal, sit directly on a proven mature and oil prone source rock and therefore open the route to significant resource volumes within the Barryoe licence area. We look forward to materially progressing the Barryroe project on foot of a successful outcome to our imminent well testing programme."

CONTACTS:
Providence Resources Plc                                         Tel: [phone]
Tony O'Reilly/ John O'Sullivan

Powerscourt                                                         Tel: [phone]
Rob Greening/Lisa Kavanagh

Murray Consultants                                                 Tel: [phone]
Pauline McAlester

Cenkos Securities Plc                                         Tel: [phone]
Adrian Hargrave/Nick Wells

J&E Davy                                                         Tel: + 353 (0)1 679 6363
Eugenee Mulhern/Stephen Barry

ABOUT PROVIDENCE
Providence Resources Plc is an Irish based oil and gas exploration company whose shares are traded on the AIM market in London and on Dublin's ESM market. Providence's portfolio of production, appraisal and exploration assets includes licence interests in Ireland (offshore) and the United Kingdom (onshore & offshore). In 2011, Providence announced plans to invest with its partners upwards of $500 million in the drilling of a number of exploration and development wells in 6 different basins offshore Ireland. This multi-year programme represents the largest drilling campaign ever carried out offshore Ireland. www.providenceresources.com.

ABOUT BARRYROE
The Barryroe licence lies directly below the Seven Heads Gas Field and has been successfully tested at flow rates of between 1,300 and 1,600 BOPD, from three exploration and appraisal wells. The reservoir sands are of Cretaceous Middle and Lower Wealden age located between c. 4,500' TVDSS and 7,550' TVDSS. The oil is light (30 to 42^o API) and contains relatively high wax content ranging from 12 to 22 per cent, which may require treatment at surface. Providence holds an 80% interest in the licence and operates on behalf of its partner Lansdowne Oil and Gas Plc (20%). A third party audit carried out by RPS Energy for Lansdowne Oil & Gas plc indicated P50 and P10 STOIIP estimates for Barryroe of 373 MMBO and 893 MMBO, respectively. The corresponding 2C and 3C Barryroe technically recoverable contingent resources are 59 MMBO and 144 MMBO, respectively. Providence entered into a MOA with Shell Trading and Marketing to agree an oil off-take agreement for future Barryroe oil production. The current Barryroe appraisal drilling programme is being carried out using the GSF Arctic III semi-submersible drilling unit. Mechanical issues at the top of the 12.25" section necessitated a minor sidetracking operation which was successfully achieved.

GLOSSARY
TVDSS - True Vertical Depth Subsea
LWD - Logging While Drilling
^o API - Measurement Of Oil Gravity

ANNOUNCEMENT
This announcement has been reviewed by John O'Sullivan, Technical Director, Providence Resources P.l.c. John holds a B.Sc. in Geology from University College Cork, Ireland, an M.Sc. in Applied Geophysics from the National University of Ireland, Galway and a M.Sc.in Technology Management from The Smurfit School of Business at University College Dublin. John is presently working part-time on a PhD dissertation at Trinity College, Dublin. John has worked in the offshore business for 20 years and is a fellow of the Geological Society of London and member of The Petroleum Exploration Society of Great Britain. Definitions in this press release are consistent with SPE guidelines.

SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in preparing this announcement

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Source: Providence Resources plc via Thomson Reuters ONE

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