CHRYSAOR EXERCISES SPANISH POINT DRILLING OPTION

Embargo 7:00am
14 March 2011


                CHRYSAOR EXERCISES SPANISH POINT DRILLING OPTION

  * Chrysaor to increase Spanish Point equity to 60% in return for the drilling
    of up to two appraisal wells on the Spanish Point discovery


  * Chrysaor to assume the management of the drilling programme with immediate
    effect


  * Well planning operations and rig procurement for a planned 2012 drilling
    programme will now commence



Providence Resources P.l.c. ("Providence"), the Irish oil and gas exploration
and production company, whose shares are listed in London (AIM) and Dublin
(ESM), has been formally notified by its partner, Chrysaor E&P Ireland Limited
("Chrysaor"), that subject to Ministerial approval, Chrysaor is exercising its
pre-agreed option to increase its equity stake in the Spanish Point area
(Frontier Exploration Licence ("FEL") 2/04) and adjacent licence (FEL 4/08).
These licences are located in the Main Porcupine Basin, c. 200 km off the west
coast of Ireland and are situated in c. 400 metre water depth. Providence
operates both licences on behalf of partners Chrysaor and Sosina Exploration
Limited ("Sosina").

Under the terms of the 2008 farm-out agreement, Chrysaor have now confirmed that
following analysis of the 2009 3D seismic data, they have elected to exercise
their option to drill up to two appraisal wells on the Spanish Point discovery.
In return for committing to such a significant work programme, Chrysaor will
double its equity participation in FEL 2/04 and FEL4/08 from 30% to 60% and
assume the drilling management role for the Spanish Point programme. As a
result, Providence's equity will decrease from 56% to 32% with Sosina's equity
reducing from 14% to 8%. As part of the option, there will be a cap on
Providence's and Sosina's financial exposure to the drilling.

The partnership has already high-graded the primary appraisal well location and
planning will now commence for the Spanish Point well programme together with
the sourcing of a suitable rig for a planned 2012 programme.

Commenting, Tony O'Reilly, Chief Executive Officer of Providence said:

"The exercise of this option by Chrysaor is further validation of the
significant potential of the Spanish Point Project and adjacent acreage. We look
forward to working with Chrysaor and Sosina on this appraisal drilling, which
forms part of Providence's previously announced multi-year, multi-basin Irish
drilling programme."

Phil Kirk, Chief Executive of Chrysaor said:

"We're very pleased with how our partnership with Providence and Sosina is
working and hope the success the group has had over the last few years will be
mirrored in the future as we more fully appraise Spanish Point and move towards
a development project."


CONTACTS:

 Providence Resources P.l.c.        Tel: [phone]
 Tony O'Reilly/John O'Sullivan


 Chrysaor E&P Ireland Limited       Tel: [phone]
 Phil Kirk


 Powerscourt                        Tel: [phone]
 Rob Greening/Lisa Kavanagh


 Murray Consultants                 Tel: [phone]
 Pauline McAlester/Pauline Dooley


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


 Davy                               Tel: + 353 (0)1 679 6363
 Stephen Barry



NOTES TO EDITORS

ABOUT PROVIDENCE
Providence Resources Plc is an independent oil and gas exploration company
listed on the AIM market in London and on Dublin's ESM market. Providence's
active oil and gas portfolio includes interests in Ireland (offshore), the
United Kingdom (onshore and offshore), the United States (offshore) and West
Africa (offshore Nigeria).

On February 16th, 2011, Providence announced the placing of 16.096 million new
ordinary shares to raise $65.7 million in support of its planned multi-year,
multi-well drilling campaign to cover the six basins in which the Company has
licence interests offshore Ireland. As part of this programme, plans are being
advanced for the drilling of an appraisal well at Spanish Point. Comprehensive
information on Providence and its oil and gas portfolio, including all press
releases, annual reports and interim reports are available from Providence's
website at www.providenceresources.com.

ABOUT CHRYSAOR
Chrysaor is a wholly-owned operating subsidiary of Chrysaor Holdings Limited
("CHL"), a privately-owned exploration and production company backed by Barclays
Natural Resources Investments ("BNRI") and a fund managed by Natural Gas
Partners.  BNRI is a division of Barclays Capital, the investment banking
division of Barclays Bank plc.

CHL seeks to create value by focussing on the development and commercialisation
of dormant oil and gas discoveries and incremental reserves.  It has an
experienced management team, with a proven track record of delivering real value
in both public and private companies latterly as part of the CH4 Energy Limited,
which was sold to Venture Production plc in 2006. Further information on CHL is
available from CHL's website atwww.chrysaor.com.

In 2008, Providence and Sosina agreed a farm out with Chrysaor which provided
for Chrysaor to conduct a significant appraisal work programme on the Spanish
Point discovery in return for a 30% interest in Spanish Point. Chrysaor then had
an option to earn a further 30% in the event it elected to drill an appraisal
well on Spanish Point, with a further 10% equity being made available post
drilling for a cash consideration.

ABOUT SPANISH POINT
The Spanish Point gas condensate discovery was made by Philips Petroleum in
1981 with the drilling of the 35/8-2 well. Oil and gas were discovered in Upper
Jurassic Volgian sands with one zone flowing at c. 5 MMSCFD and c. 1000 BOPD (c.
1800 BOEPD). The discovery was not appraised due to lack of gas infrastructure
and market in Ireland at the time. In 2004, Providence/Sosina licensed the
discovery and following in depth subsurface and pre-development studies,
Chrysaor farmed in during 2008 by agreeing to fund a c. 300 sq km 3D seismic
survey which was acquired in 2009. Evaluation of these data has confirmed a
resource level of up to c. 510 MMBOE with c. 200 MMBOE recoverable. Peak
production rates have been modelled at over 70,000 BOEPD and planning has
commenced for an appraisal drilling programme. On February 22nd, 2011, the
Spanish Point partners announced that they had agreed to enter the second phase
on FEL 2/04 licence, which requires a commitment to drill a well.

GLOSSARY OF TERMS USED
All figures quoted are gross figures, unless otherwise stated
BOPD Barrels of Oil per Day
BOEPD Barrels of Oil Equivalent per Day
MMBOE Millions of Barrels of Oil
MMSCFD Millions of Cubic Feet of Gas per Day

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 the Petroleum Exploration Society of Great Britain.
Definitions in this press release are consistent with SPE guidelines.






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Source: Providence Resources plc via Thomson Reuters ONE

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